On Thursday November 2, 2023, Ontario Premier Doug Ford and Finance Minister Peter Bethlenfalvy published the Province’s fall economic statement, Building a Strong Ontario Together (the Statement). The Statement highlighted the Province’s economic and fiscal outlook, revealing a one-year delay in the Province’s journey to fiscal balance. Additionally, the government put forth plans to establish its infrastructure bank for financing significant projects.
Key Tax-Related Measures
Gas and Fuel Tax
The Ontario Government is extending the temporary gas tax rate cut of 5.7-cents per liter and the fuel tax rate cut of 5.3-cents per liter to June 30, 2024.
Ontario Focused Flow-Through Share Tax Credit
Ontario’s Focused Flow-Through Share Tax Credit is intended to stimulate mineral exploration in the Province. It provides eligible individuals with a refundable tax credit of five per cent of eligible Ontario expenses.
The Ontario Government is proposing to expand eligibility of the credit to include critical minerals that qualify for the Federal Critical Mineral Exploration Tax credit, starting with the 2023 tax year.
Landlord’s HST Rebate for New Residential Rental PropertiesThe Ontario Government is taking steps to remove the full 8 per cent provincial portion of the Ontario Harmonized Sales Tax (HST) on qualifying projects. Together with federal-level enhancements, this would remove the full 13 per cent HST on qualifying new rental buildings. The Province is aligning with the federal measure previously announced.
This article has been prepared for the general information of our clients. Please note that this publication should not be considered a substitute for personalized advice related to your situation.