Highlights from Ontario’s fall economic outlook

Ontario Minister of Finance Peter Bethlenfalvy released the province’s 2024 economic outlook and fiscal review on October 30, 2024.  

Titled Building Ontario for You, this year’s plan focuses on building critical infrastructure, keeping taxes low and providing immediate relief to Ontario families to help manage the cost of living.  

No personal or corporate income tax rate changes were announced.  

Highlights of new tax measures include the following: 

Taxpayer rebate 

A one-time $200 rebate will be provided to all adult Ontario tax filers who have filed their 2023 Income Tax and Benefit Return by December 31, 2024. Families who qualify for a Canada Child Benefit (CCB) payment for 2024 will also receive an additional one‐time $200 rebate for each eligible child under age 18.  

An alternative process will be available to access the rebate for Ontario families with children that did not receive the CCB for 2024.  

Response to the federal Alternative Minimum Tax (AMT) rate increase 

Since the federal AMT rate has increased to 20.5 percent effective 2024 (from 15 percent), Ontario proposes to lower its AMT rate to 24.63 percent, starting with the 2024 tax year. This will ensure the effective Ontario AMT rate remains unchanged at 5.05 percent. The Ontario AMT credit rate will be adjusted to 24.63 percent to mirror the proposed Ontario AMT rate starting in 2025. 

Tax credit support for fertility services 

A new tax credit will be introduced in 2025 to help support families seeking fertility treatment. The credit will build on Ontario’s existing medical expense tax credit. This proposed new tax credit would provide support of up to 25 percent of eligible fertility treatment expenses, which may include IVF cycles, fertility drugs, travel and diagnostic testing. 

Extension of temporary gasoline tax and fuel tax rate cuts 

The government proposes to extend the temporary gasoline tax rate cuts for the fourth time. The rate of tax on gasoline and fuel (diesel) would remain at $0.09 per litre until June 30, 2025.  

Continuation of Ontario Made Manufacturing Investment Tax Credit 

The province will continue the Ontario Made Manufacturing Investment Tax Credit, introduced in the 2023 Budget, to support manufacturers by reducing costs. Eligible corporations can receive a 10 percent refundable tax credit for qualifying investments in buildings, machinery, and equipment used in manufacturing and processing within the province.  

Extension and enhancements to the time-limited tax relief for the electricity distribution sector 

The province proposes to extend existing incentives until December 31, 2028. An additional temporary reduction of the transfer tax rate to zero percent (down from 22 percent) is proposed for municipal electricity utilities (MEUs) with 30,000 customers or more. The reduction will be effective from January 1, 2025, to December 31, 2028. All other terms of the existing incentives will remain unchanged. 

Concluding the provincial tax system review 

The government is concluding its review of the provincial tax system which began in 2023. While some changes have already been implemented, the government will continue to review options for future tax measures to promote productivity and fairness, as well as to simplify and modernize the tax system for taxpayers. 

Technical amendments 

The province announced several technical amendments aimed at: 

• improving administrative effectiveness and enforcement,  

• maintaining the integrity and equity of Ontario’s tax and revenue collections system, and  

• enhancing legislative clarity and regulatory flexibility to preserve policy intent.  

Among these measures, the following will be proposed to mirror recent federal changes: 

• The revised general anti-avoidance rule (GAAR), generally effective January 1, 2024 

• Expansion of the federal mandatory disclosure rules in respect of “notifiable transactions” and “uncertain tax treatments”, which will be effective from June 2023 to align with federal changes. 

More details and highlights of the 2024 Economic Outlook and Fiscal Review are available here.