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Ontario 2017 Budget - April 27, 2017
All proposals are subject to legislative approval. Bill 127, Stronger, Healthier Ontario Act (Budget Measures), 2017 received Royal Assent on May 17, 2017. This bill does not include all the tax measures announced.
Bill 134, Budget Measures Act (Housing Price Stability and Ontario Seniors' Public Transit Tax Credit), 2017 received Royal Assent on June 1, 2017. This includes the land transfer tax.
Bill 177, Stronger, Fairer Ontario Act (Budget Measures), 2017 was tabled on November 14, 2017 and received Royal Assent on December 14, 2017. It includes changes regarding the Caregiver Credit, and changes to the wording regarding the Seniors' Public Transit Tax Credit.
Ontario Health Insurance Plan+ (OHIP+): Children and Youth Pharmacare
Starting on January 1, 2018, OHIP+: Children and Youth Pharmacare will provide universal drug coverage to all children and youth aged 24 and under, regardless of family income. It will completely cover the cost of all medicines funded through the Ontario Drug Benefit (ODB) Program. There will be no deductible and no co-payment.
Ontario Student Assistance Program (OSAP)
This program is being changed to make postsecondary education more accessible and affordable for Ontario students and their families, including mature students.
Starting this summer, Ontario's proposed Fair Hydro Plan will reduce electricity bills by 25% on average for eligible households, also benefiting approximately 500,000 small businesses and farms. Effective January 1, 2017, there will also be a rebate of the provincial portion of the Harmonized Sales Tax (HST) for residential customers and eligible farm and small business consumers.
Personal Tax Measures
Ontario Caregiver Tax Credit (OCTC)
Ontario proposes to replace the provincial caregiver and infirm dependant tax credits with a new Ontario Caregiver Tax Credit (OCTC), similar to the Canada Caregiver Tax Credit, beginning in the 2017 taxation year. The following changes apply, and are reflected in the table of Non-refundable Tax Credits for 2017:
Seniors' Public Transit Tax Credit
This new tax credit will be available for the 2017 taxation year for senior Ontarians aged 65 and older at the end of 2016. See our article on the Seniors' Public Transit Tax Credit.
Multijurisdictional Tax Filers
Amendments are proposed to change the way provincial surtax and the Ontario Tax Reduction (OTR) are calculated for Ontario residents who pay tax to another province, and non-residents of Ontario who pay tax to Ontario, to ensure consistency between the surtax and OTR treatment for multijurisdictional filers and other filers. These changes will be effective for the 2017 and later taxation years.
The surtax will be calculated based on the total amount of Ontario tax on taxable income. The total amount of tax payable, including the surtax, will then be prorated based on the percentage of income allocated to Ontario. The OTR amounts will also be prorated based on the percentage of income allocated to Ontario. See Ontario Tax Reduction on the Ontario website.
Other Proposed Tax Measures
Other topics from the Ontario budget, on the Ontario website:
Transfer Tax and Payments in Lieu of Federal and Provincial Corporate Tax (Hydro PILS) - re application of hydro PILS against a taxpayer's Transfer Tax liability
See Ontario Budgets: past editions for more information on the 2017 Budget.
Revised: December 20, 2022
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