On Wednesday, October 30, 2024, Ontario Minister of Finance Peter Bethlenfalvy released the 2024 Ontario Economic Outlook and Fiscal Review: Building Ontario for You with a series of tax-related measures aimed at providing relief to taxpayers, supporting families by alleviating financial burdens and promoting economic growth in the province.
Here are four key tax-related measures announced today.
1. Taxpayer Rebate
The Ontario Government is proposing to provide a one-time $200 taxpayer rebate in early 2025 to all eligible Ontario taxpayers. The rebate will not be taxable.
To be eligible for the rebate the individual must be 18 years or older at the end of 2023; be a resident in Ontario on December 31, 2023; have filed their 2023 Income Tax and Benefit Return by December 31, 2024; and not be bankrupt or incarcerated in 2024.
The Ontario Government is also proposing to provide families with an additional one-time $200 rebate for each eligible child under the age of 18.
2. Alternative Minimum Tax (AMT)
The Federal Government previously increased the federal AMT rate from 15 per cent to 20.5 per cent, starting with the 2024 tax year.
Ontario’s current AMT rate is 33.67 per cent. This resulted in an effective tax rate on Ontario’s notional AMT base equal to its lowest personal income tax rate of 5.05 per cent (33.67 per cent x 15 per cent).
To ensure that the effective Ontario AMT rate remains unchanged at 5.05 per cent, the Ontario Government is proposing to lower its AMT rate from 33.67 per cent to 24.63 per cent, starting with the 2024 tax year.
3. 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, 2025.
4. Ontario Fertility Treatment Tax Credit
The Ontario Government is proposing to introduce a new tax credit in 2025 to support families seeking fertility treatment. This proposed new tax credit would provide a credit of up to 25 per cent of eligible fertility treatment expenses (up to a maximum of $5,000 per year). Eligible expenses would include IVF cycles, fertility drugs, travel and diagnostic testing.
To understand how these initiatives will affect your personal and business affairs, schedule a consultation with a Crowe Soberman advisor.
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.
