7 Things You Should Know About Ontario's 2022 Budget That Could Save You Money
Minimum wage is going up and the gas tax is going down!
The Ontario 2022 budget was released on April 28, and it includes plenty of ways for Ontarians to save some money!
The Minister of Finance Peter Bethlenfalvy announced the budget on Thursday, and the plan focuses on rebuilding the economy, building new infrastructure, creating new jobs and opportunities, staying open through COVID-19, lowering costs and more. This budget details the Ford government's spending plans if re-elected to another term in June.
"The people of Ontario deserve a government that has a real plan to build," said Minister Bethlenfalvy. "Our government’s Budget is Premier Ford’s vision and our plan to cut through the excuses and act right away on the priorities of the people of Ontario."
Here are seven ways the budget could help you save a few bucks.
Tax cuts
The Ontario government has proposed to enhance the "Low-income Individuals and Families Tax Credit" to allow for an extra $300 in Personal Income Tax (PIT) relief, which could benefit around 1.1 million taxpayers.
It's important to keep in mind that "most of these new credit recipients would have incomes between $38,500 and $50,000," according to the plan.
The minimum wage will rise
Workers may be able to pocket a little more cash come fall 2022.
According to the Ontario government, the general minimum wage is set to rise to $15.50 per hour on October 1, 2022, and digital platform workers will also be guaranteed the general minimum wage too.
In other words, full-time workers who are earning a minimum wage could see an annual raise of $1,768, according to the government.
Additionally, liquor server workers who work around 40 hours a week could also see a yearly raise of $5,512.
Licence plate renewal fees removed and refunded
Ontarians no longer have to pay licence plate renewal fees for "passenger vehicles, light-duty trucks, motorcycles and mopeds" as of March 13, 2022, and can even score a refund and get some money back. It's a win-win!
Gas & fuel tax will be cut for six months
Ontario gas prices have been a pain in many drivers' wallets, and starting July 1, 2022, the gas tax will be cut by 5.7 cents per litre and the fuel tax will be cut by 5.3 cents per litre for six months.
According to Bethlenfalvy, these cuts, combined with the scrapped fees for licence plate renewals, will "help save households on average $465 in 2022."
Removing highway tolls
As of April 5, tolls on Highway 418 and 412 were removed. So in other words, every time you drive down either of these highways, you're saving some money.
Lowering childcare costs
If you are drowning in childcare costs, there might be a light at the end of your expensive tunnel. Thanks to a "$13.2 billion agreement with the federal government," they are working towards attaining $10 a day of child care for Ontarians by September 2025.
The Ontario budget is working on "lowering child care fees for parents." As of April 1, the deal was set to bring childcare costs down an average of 25% for families with kids five years and younger in "licensed child care centres" to a minimum of $12 per day in the first round of lowering costs, according to a press release.
In May 2022, eligible families will also be able to reap these savings retroactively starting April 1, 2022.
Ontario Seniors Care at Home Tax Credit
Senior citizens 70 years or older may be able to save some money with a new proposed tax credit.
The Ontario government is proposing a "refundable Ontario Seniors Care at Home Tax Credit" to "help seniors with eligible medical expenses, including expenses that support aging at home."
People who are eligible could receive up to 25% of their "claimable medical expenses up to $6,000, for a maximum credit of $1,500."
Other medical expenses could include attendant care, walking and bathroom aids and more.