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Newly Elected Government ‘Reintroduces’ Ontario Budget and Retains Income Tax Increases
The original May Budget was rejected by opposition parties. Fresh from their win, the newly elected liberal government have reintroduced the measures – this time as the July Budget (essentially the same as the May Budget).
The headline items are:
- an increase in personal income tax on incomes in excess of CAD$150,000 – 12.16% applied to salaries between CAD$150k-220K and 13.16% to salaries earned in excess of CAD$220K
- from 2017, an Ontario Retirement Pension Plan (ORPP) will be made available for employees without a workplace pension plan and will require matched contributions from the employee and employer of no more than 1.9% each on a maximum salary of CAD$90k
- phase-out or elimination of the “small business deduction” for certain large Canadian-controlled private corporations (CCPCs) and a new Ontario Retirement Pension Plan