HELPING ONTARIO FAMILIES
Investing in Children and Families
Ontario is in the grip of a global economic crisis. Together, we will do everything we can to get through these difficult times and build a stronger Ontario for the future. Ontario can only move forward when all of us move forward, together.
That’s why the McGuinty government, in its 2009 Budget, announced relief for children and families by proposing to:
- Increase the Ontario Child Benefit (OCB)
- Nearly doubling from $600 to $1,100 for every child under the age of 18 in low- and middle-income families starting this July, two years ahead of schedule.
- Increase the Senior Homeowners’ Property Tax Grant
- Doubling the Senior Homeowners’ Property Tax Grant so that low- and middle-income seniors living in their own homes will get $500 in support for their property taxes, which would help approximately 600,000 seniors over the next five years.
- Increase the Minimum Wage
- The minimum wage will rise to $9.50 on March 31, 2009. This is the sixth increase since 2003.
- Increase Social Assistance
- Helping low-income families by increasing the social assistance rate.
Tax Savings for Families
The government is introducing a comprehensive tax reform package that would make Ontario an even better place to live and work by making Ontario stronger.
The McGuinty government is proposing to provide tax relief to Ontarians; 93 per cent of Ontario taxpayers would pay less personal income tax, with the most relief going to low- and middle-income families and individuals. This includes:
- $4 billion in cash payments to 6.5 million Ontario families and individuals.
- Eligible families and single parents with an income of less than $160,000 would receive three payments from the provincial government, totalling $1,000
- Eligible individuals with an income of less than $80,000 would receive three payments from the provincial government, totalling $300
- The first payment would arrive in June 2010, the second in December 2010 and the final payment would come in June 2011.
- A new permanent refundable sales tax credit of up to $260 for every adult and child in low- to middle-income families.
- A 16.5 per cent cut in the tax rate on the first $36,848 of taxable income earned by all Ontarians.
- People making $80,000 or less would receive a 10 per cent income tax cut on average.
Sales Tax Reform
Ontario Retail Sales Tax and the federal Goods and Services Tax would be combined into a single, value-added sales tax. This would reduce costs for businesses, boost investment and help our economy grow stronger and be more competitive.
To help families make the transition to a single sales tax, the McGuinty government would exempt the following items from the provincial portion of the tax:
- Children’s clothing and footwear, children’s car seats and car booster seats, diapers, books and feminine hygiene products.
Help for Homeowners and Tenants
To help tenants and homeowners, the McGuinty government would:
- Ensure that newly constructed homes under $400,000 would not be subject to an additional tax burden. Buyers of new homes valued between $400,000 and $500,000 could also claim a proportional rebate.
- Provide an additional $270 million a year in property tax relief for low- and middle-income homeowners and tenants.
More 2009 Ontario Budget Information
General inquiries regarding the 2009 Ontario Budget should be directed to:
Budget Hotline
English and French inquiries:
Toll-free: 1-800-337-7222
TTY toll-free: 1-800-263-7776
For more information on the tax package, go to www.ontario.ca/taxsavings
For electronic copies of this document, visit our website at: www.ontario.ca/budget
Printed copies are available free from:
ServiceOntario Publications
777 Bay Street, Market Level
Toronto, Ontario M5G 2C8
Telephone: 416-326-5300
Toll-free: 1-800-668-9938
TTY toll-free: 1-800-268-7095
www.serviceontario.ca/publications
