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Home > Government
Relations > Finance
On March 25, Dwight Duncan, Ontario’s Minister of Finance released
the details of the 2008 Provincial Budget.
With economic growth of 2.1% in 2007, a provincial surplus
of $600 Million is projected for 2008, and the total budget for 2008 is
$96 Billion.
Ontario’s economy created 101,100 net new jobs
in 2007, a gain of 1.6%, the largest increase since 2004. The accommodation
and food services industry had a net increase of 26,500 new jobs in 2007.
The Ministry of Finance is projecting employment to increase by 1% in
2008, and real GDP growth of 1.1%.
The ORHMA was pleased to see a number of its pre-budget
recommendations addressed, specifically with regard to investment in tourism,
support for the Windsor border crossing, and minimum wage.
Of interest to the hospitality and tourism industry:
Tourism
• $110 Million in tourism to strengthen and expand tourism in
Ontario, including:
• extending the Retail Sales Tax exemption for Destination Marketing
Fees by two years to June 30, 2010
• committing $8 Million over 2 years to conduct research, to be
led by MPP Greg Sorbara, to strengthen the competitiveness of Ontario’s
tourism industry
• $50 Million over the next 4 years in tourism marketing and the
Festival and Events Attraction and Support Program, to support Ontario
festivals and events, and promote Ontario as a major tourist destination
• making permanent the Retail Sales Tax exemption on admissions
to live theatres of not more than 3,200 seats
Taxation
• accelerating reductions to the Business Education Tax Rate in
Northern Ontario to ensure that northern business will benefit from
the full BET reduction by 2010, four years earlier than originally announced,
saving northern businesses more than $70 Million
• modernizing business and financial regulations and streamline
approval processes to help reduce red tape for businesses
• mandatory phase-in of property assessment increases will be
expanded to include all property classes, including commercial, industrial
and multi-residential
Job Creation
• $1.5 Billion over 3 years for a Skills to Jobs Action Plan,
including:
• training unemployed workers for new careers and expanding apprenticeships
by 25%
• $335 Million for a Second Career Strategy to provide training
for 20,000 unemployed workers
Infrastructure
• a commitment to fully fund its share of the final proposed road
link between Highway 401 and the new Windsor border crossing, with construction
scheduled to begin in 2009 and concluded by 2013. Further details on
the border crossing initiative are expected within weeks.
• $448 Million in new funding over the next 5 years to accelerate
projects to rehabilitate bridges that are part of the provincial highway
network
• $927 Million in 2008-09 in the Southern Ontario Highways Program
• $557 Million in the Northern Ontario Highways Program
Other
• proposed legislation that would ban processed trans fats from
food and beverages sold in school cafeterias and removing unhealthy
food and beverages from school vending machines. The legislation would
be supported by $10 Million annually in a childhood obesity strategy
to encourage children to eat healthy and be physically active
• a commitment to maintain previously announced increases to minimum
wage (and to not accelerate the rate of increases)
The ORHMA is pleased that the government has accepted
a number of recommendations submitted by the association. The ORHMA would
like to thank all association members and Provincial and Regional Directors
for providing advice over the past year which have assisted in the development
of the ORHMA 2008 Pre-Budget submission. To view the ORHMA 2008 Pre-Budget
submission please click
here.
To view Ministry of Finance budget documents please visit www.fin.gov.on.ca
Ontario
Health Care Premiums
Ontario Health Care Premiums were introduced by the Government in the
2004 Provincial Budget, and the premiums came into effect on July 1, 2004.
The Health Care Premiums will be implemented through the Income Tax Act
and administered under the existing Tax Collection Agreement between Ontario
and the federal government.
To ensure that employers do not incur added costs to
change their payroll systems, the premium would be included on pay stubs
as a component of the income tax withheld.
| Ontario Health Premiums |
|
| Taxable Income |
Fully Implemented |
| Up to $20,000 |
$0 |
| $20,000 - $36,000 |
$300 |
| $36,000 - $48,000 |
$450 |
| $48,000 - $72,000 |
$600 |
| $72,000 - $200,000 |
$750 |
| more than $200,000 |
$900 |
Ontario Health Care Premium -
Letter to Minister of Finance December 2006 
Minister
of Finance responds to ORHMA (January 10, 2005)
Letter
to Minister of Finance (November 9, 2004)
$4 Meal Tax
In preparation for its inaugural provincial budget the Minister of Finance
released a discussion paper regarding proposals to be included in the
budget. Included in the list of recommendations was the elimination
of the retail sales tax exemption on meals under $4. The ORHMA and its
members worked together to raise the public profile of this item, and
after only one week of opposition from industry and the public, the
government announced their decision to protect the retail sales tax
exemption for meals under $4.
•Foodservice operators applaud Premier McGuinty's
decision to take meal tax off the menu (April 20, 2004) page
1
•100,000 consumers...and counting...say "NO"
to Ontario's 8% meal tax proposal (April 19, 2004) page
1, page
2
• Strong opposition brewing against 8% tax on meals
(April 14, 2004)
page 1,
page
2
Tax Tips for Small Businesses
Link: Ontario Ministry of Finance, Small Business Guide. This booklet
will guide you through various aspects of Retail Sales Tax, Corporations
Tax and Employer Health Tax.
www.trd.fin.gov.on.ca/userfiles/HTML/cma_3_24414_1.html
(Updated March, 2008)
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