2022 Ontario Fall Economic Statement Highlights

2022 Ontario Fall Economic Statement Highlights

2022 Ontario Fall Economic Statement Highlights

Synopsis
3 Minute Read

Ontario Finance Minister Peter Bethlenfalvy released the 2022 Economic Outlook and Fiscal Review on November 14, 2022.

On November 14, 2022, Ontario Minister of Finance Peter Bethlenfalvy released the province’s 2022 Fall Economic Statement. Titled 2022 Ontario Economic Outlook and Fiscal Review – Ontario’s Plan to Build: A Progress Update, the statement provides an update on Ontario’s economic and fiscal outlook, as well as targeted measures to build the economy, address labour shortages, and help families and businesses manage rising costs.

Highlights of tax measures include the following:

  • No personal or business income tax rate changes.
  • Expanding access to the small business corporate tax rate: Ontario is proposing to phase out access to the small business income tax rate on a more gradual basis by extending the taxable capital range over which the small business limit is reduced to $50 million from the current $15 million limit. The new phase-out range will therefore be $10 million to $50 million. This mirrors the change announced in the 2022 Federal Budget. Ontario legislation is intended to be introduced once the corresponding federal legislation has received Royal Assent.
  • Immediate expensing to encourage business investment: Ontario is providing temporary immediate expensing for eligible property acquired by Canadian-controlled private corporations (CCPC), Canadian-resident proprietors and certain Canadian partnerships. This measure parallels rules introduced by the federal government.
  • Modernizing cultural media tax credits: Further to the commitment announced in the 2022 Ontario Budget to modernize these credits, the government proposes to expand the eligibility of the Ontario Production Services Tax Credit (OPSTC) to include certain tangible property expenditures for leasing locations for on-location filming incurred after November 14, 2022.
  • Extending the temporary gas tax and fuel tax cuts: The temporary reductions in gas tax and fuel tax (by 5.7 cents per litre and 5.3 cents per litre, respectively), which were set to end on December 31, 2022, will remain in place until December 31, 2023.
  • Addressing unregulated tobacco: The government will proceed with a review of the Tobacco Tax Act and will continue to engage with First Nation partners, industry, and public health organizations to reduce existing burdens and improve administration relating to unregulated tobacco.

Full details of the 2022 Ontario Fall Economic Statement can be found on the Provincial Government’s website here.

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