SENIORS
The McGuinty government is working hard to ensure Ontario seniors enjoy a high quality of life by providing health care and support they need in the ways that best meet their needs.
2009 Ontario Budget
Enhancing Ontario Property and Sales Tax Credits for Senior Couples
Since 2003, the government has made several improvements to the Ontario Property and Sales Tax Credits to ensure they better reflect circumstances facing low-income seniors. The government proposes a further enhancement in 2009 that would help senior couples.
New Ontario Sales Tax and Property Tax Credits
Under the current tax system, Ontario families must wait until their tax returns are processed to receive sales tax relief for sales tax paid in the previous year. The current sales tax relief, provided through the Ontario Property and Sales Tax Credits, would be replaced by a new refundable Ontario Sales Tax Credit with advance payments.
The enhanced, permanent sales tax credit for low- to middle-income people would provide up to $260 per person and would be refundable and paid quarterly starting in July 2010.
Property tax relief, currently provided through the Ontario Property and Sales Tax Credits, would be replaced by a new refundable Ontario Property Tax Credit for low- to middle-income homeowners and tenants, starting in 2010. A credit would be provided for occupancy cost — property tax paid or 20 per cent of rent paid — of up to $625 for seniors, plus 10 per cent of occupancy cost. The credit would not be more than occupancy cost and would be subject to a maximum of $1,025 for seniors.
Eligible senior homeowners will continue to receive additional assistance with their property taxes through the Ontario Senior Homeowners' Property Tax Grant. The maximum grant will be doubled to $500 in 2010, as announced in the 2008 Ontario Budget.
Increasing Access to Locked-in Accounts
The government is proposing reforms for locked-in accounts to give seniors and other Ontarians more flexibility in accessing the funds in these accounts:
- Increasing unlocking from Ontario life income funds (LIFs) from 25 to 50 per cent
- Providing a two-year waiver of fees for financial-hardship unlocking applications.
Strengthening Ontario's Pension System
The government is addressing the short-term economic challenges that pension plans are facing, while moving forward with long-term reforms to strengthen the pension system for Ontarians.
To that end, the government would seek approval to provide temporary solvency funding relief to pension plans affected by financial-market turmoil. The measures will ensure greater transparency while helping to protect the security of pension benefits.
It is also proposed that Ontario's pension system will be modernized by:
- Simplifying and clarifying the rules that apply to pension division on marriage breakdown
- Introducing amendments, complementary to recent federal tax changes, that would permit pension plans to offer phased retirement programs to workers
- Enhancing the power of the Superintendent of Financial Services to review certain pension arrangements in restructuring proceedings
- Introducing a package of additional pension reforms in the fall of 2009.
To further support tomorrow's seniors, Ontario will be working with the federal government and its provincial partners to explore the adequacy of retirement incomes and the extent of pension coverage.
Improving Home Care Services
The government will strengthen the accountability of home care services among service providers and Community Care Access Centres (CCACs) throughout the province.
In addition, the strategy introduces new quality measures that will strengthen the way CCACs make arrangements for home care services, provide information and referrals to community-related services, and authorize admission to long-term care homes.
In 2009, through the Ontario Health Quality Council, the government will publicly report for the first time on quality of care in long-term care homes, in the form of resident health outcomes and satisfaction.
Achievements Since 2003
In addition to the measures being announced in the 2009 Budget, the McGuinty government has introduced a number of key initiatives since 2003 designed to improve the lives of Ontario seniors:
Income Support
- $1 billion over five years through the Ontario Senior Homeowners' Property Tax Grant for seniors with low and moderate incomes who own their own homes
- About $5 million in 2009 to enhance the Ontario Property and Sales Tax Credits program
- Nearly 695,000 seniors have benefited from an estimated $100 million in enhancements to this program since 2003
- $370 million in Ontario personal income tax savings since 2007 for pensioner couples with eligible pension income, as a result of allowing pension splitting.
Aging at Home Strategy
In 2007, the McGuinty government launched the four-year $1.1 billion Aging at Home Strategy. The strategy is designed to match the needs of seniors and their caregivers with the appropriate local supports to allow seniors to live with independence and dignity in the comfort of their own home for as long as possible.
The strategy is critical both for its potential to improve the lives of seniors and ensure the overall sustainability of the health care system.
Long-Term Care Homes
The McGuinty government has also taken important steps to ensure seniors who cannot live at home enjoy equitable access to the highest quality of long-term care services. These include making key investments in long-term care homes and front-line staff, and a new strategy that includes province-wide quality measures and a public reporting system. Other achievements include:
- A seven per cent increase for 2008-09 in funding for long-term care homes, which raised total investments to $3.1 billion for long-term care homes. Since 2003, the government has increased long-term care funding by $1 billion
- Funding more than 6,100 new front-line staff in long-term care homes, including 2,300 nurses, since 2004.
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