On October 30, 2024, the Province released its Fall Economic Statement entitled, ‘Building Ontario for You: 2024 Ontario Economic Outlook and Fiscal Review.’
Here are the key highlights:
Cost of Living
The government is proposing to:
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Provide a $200 taxpayer rebate for all eligible Ontario tax filers, plus an additional $200 for each eligible child under age 18 for those families who qualify for a Canada Child Benefit payment for 2024
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Extend the temporary gas tax and fuel tax rate cuts keeping the rates at nine cents per litre until June 30, 2025
TIAO is encouraged that measures such as the above as well as expanding access for families who are seeking fertility treatment including a tax credit for 2025 are positive steps in allowing Ontarians the support to make life more affordable and to save.
Economic Development
The government is proposing to:
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Increase the Ontario Municipal Partnership (OMPF) by $100M over the next two years, bringing total funding provided through this program to $600M by 2026
TIAO is pleased to see the Province continuing to provide assistance to municipalities as they face a growing set of complex challenges. With safety continuing to be a top challenge for urban and rural visitor economies, TIAO reiterates the need for the provincial government to continue to work with municipalities to provide comprehensive solutions to the homelessness and mental health crisis.
TIAO acknowledges the government’s commitment to continue reviewing the property tax assessment and taxation system. To provide greater certainty for businesses and investors, TIAO emphasizes the need to return to regular and more frequent property tax assessments.
The government is also proposing to:
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Through the Ontario Centre of Innovation, provide up to $6M over two years to the Toronto Business Development Centre (TBDC) to implement the Horizon Ontario program in order to support Ontario’s entrepreneurial growth.
TIAO recognizes that the Horizon Ontario program will help attract European entrepreneurs to the province. Alongside investor and entrepreneurship programs, TIAO encourages the Province to consider the role of the visitor economy in introducing Ontario to the world by facilitating cross-cultural exchange and highlighting investment potential through business and leisure visitation.
Workforce
TIAO is pleased to see the government’s ongoing commitment to supporting recruitment, retention, and training through the Skills Development Fund. As our industry refocuses efforts to build a competitive workforce from domestic pools of talent, the Skills Development Fund has become the primary vehicle for supporting upskilling, training, and tourism workforce sustainability.
Transportation
The government is proposing to:
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Evaluate the feasibility of a new driver and transit tunnel expressway under Highway 401 and examine other options to increase capacity and reduce gridlock
TIAO is pleased to see the reinforcement of commitments to transit and infrastructure improvements including Building Highway 413, expansion of subways lines and extensions and reduction of tolls, though recognizes the gap and ongoing need to address the declination of air service in the province. TIAO has been working to stress to government that ample investment and planning must continue to build comprehensive transit connections within and between communities. These connections, importantly, should facilitate multi model transportation.
The Province is projecting over $191 billion in infrastructure investment over the next decade to improve transit, highways, housing enabling framework and other critically necessary public infrastructure.
Alcohol Marketplace Expansion
TIAO applauds the Province’s expansion of the alcohol marketplace, which will provide more opportunities for Ontario consumers and visitors to discover Ontario-made beverages. In anticipation of the expansion of beer, wine, cider, and ready-to-drink beverages into convenience stores, grocery stores, and big box stores, TIAO has advocated for increased investment to ensure safe alcohol sales and consumption and for craft beverage tax reforms.
TIAO is encouraged that the government is proposing to:
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Invest an additional $10M over five years to support social responsibility and public health efforts to promote safe alcohol sales and consumption
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Provide a temporary rebate to brewers, including small and craft brewers, for the LCBO cost of service fee to support a stable transition to a more open marketplace
TIAO recognizes the Province’s commitment to reviewing taxes, mark-ups, and fees on beer, wine and alcoholic beverages. To ensure that craft beverage producers can keep up with rising distribution costs and remain competitive in an expanded marketplace, TIAO reiterates the importance of the government completing this review by the end of 2024 and instituting the Ontario Craft Brewers’ recommended tax reforms.
Moreover, as outlined in the Fall Economic Statement, the LCBO will remain a public asset, including as the exclusive retailer of high-alcohol spirits, and transitioning to an expanded role as a wholesaler. The Ministry of Finance projects an increase in the LCBO’s 2026-27 market share, which is primarily driven by their role as a wholesaler to new grocery and convenience stores, as well as to bars and restaurants.
Proposed Legislative Amendments
The government is proposing to make legislative amendments to 13 statutes, including the Municipal Act, 2001 to support policy, tax administration, and enforcement. TIAO encourages the provincial government to consider adopting our policy recommendations, developed through robust stakeholder consultations, to ensure that the Municipal Accommodation Tax (MAT) can best its intended objectives of supporting the growth and development of local visitor economies.
TIAO will monitor proposed legislative amendments to the 13 statutes and encourages the provincial government to consult with industry stakeholders to ensure the amendments support the growth and competitiveness of all economic sectors in Ontario.
Ontario’s Economic Outlook
The Ministry of Finance reports that Ontario’s economy is expanding despite high interest rates and geopolitical uncertainties. Real GDP growth is expected to moderate to 0.9% this year but strengthen to 2.3% by 2027. For more on the economic outlook, visit here.