On April 29, 2022, Ontario’s Minister of Finance delivered the province’s 2022 budget, based on five different pillars.
No Changes To Corporate or Personal Tax Rates
Budget 2022 did not introduce changes to Ontario’s corporate or personal tax rates.
Rebuilding The Economy
Budget 2022 wants to help rebuild the economy as follows:
Almost $1 billion is committed to critical legacy infrastructure, such as all-seasons roads.
Creating good manufacturing jobs. In the past 18 months, 12 billion dollars have been invested in supporting new electric vehicle production and battery manufacturing.
Enable Ontario employers to realize an estimated $8.9 billion in cost savings by cutting taxes and lowering electricity costs.
Better Jobs and Bigger Paycheques
Another focus is on more significant paycheques and better job opportunities. To support this:
The general minimum wage will rise to $15.50 per hour starting October 1, 2022.
$1 billion will be committed annually to employment and training programs for learning new skills or upgrading existing ones.
Over three years, $114.4 million has been committed to the Skilled Trades Strategy, including expanding in-class training.
Ontario is expanding college degree granting. Colleges can start offering new degree programs in various sectors, including the automotive industry and health care.
Building Highways and Key Infrastructure
Budget 2022 commits to:
Investing $158.8 billion in crucial infrastructure over ten years, with $20 billion spent in 2022–23.
$25.1 billion being spent over ten years to support major highways such as the Bradford Bypass, Highway 413, Highway 401 and Highway 7.
$61.6 billion over ten years to support public transit. This includes expanding GO train services to London and Bowmanville and expanding passenger rail service to Northern Ontario.
Keeping Costs Down
Another focus of Budget 2022 is to help people save money:
Tolls will be removed on Highways 412 and 418.
Starting July 1, the gas tax will be cut by 5.7 cents per litre for six months.
License plate renewal fees will be eliminated and refunded, leading to a $120/year savings in Southern Ontario and $60/year savings in Northern Ontario.
$300 in additional tax relief will be available on average for 1.1 million lower-income workers via the proposed Low-income Individuals and Families Tax Credit enhancement.
Supporting the creation of all types of housing.
Working towards an average of $10-a-day child care by September 2025.
Investing in Health Care
Budget 2022 also understands the importance of continuing to invest in health care. Money is committed as follows:
Over $40 billion for hospitals and other health infrastructure over ten years.
$764 million over two years to provide nurses with a retention incentive of up to $5,000.
$42.5 million over two years to expand medical education and training.
$1 billion for in-home care over three years.
We can help!
Wondering how tax changes in this year’s budget may impact personal finances or business affairs? Reach out to us – we’re here to answer any questions you may have!
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Wilson Insurance and Financial Strategies
15 9th Street, P.O. Box 3153 Hearst, ON P0L 1N0
Fax: (705) 362-8111
About Wilson Insurance and Financial Strategies
Working both with business owners and the family market are the main focus of my business. I provide defensive strategies that protects the financial health of businesses and families in the tragic events of death, disability and illness. In addition, I provide offensive strategies that helps business owners pay less tax as well as simple but yet powerful methods of extracting money out of corporations tax efficiently. Furthermore, I provide business owners and families with easy planning methods that help them understand how much money they need to retire with confidence and knowing they will have enough to fund their retirement goals.