5 Ways Ontario Is Trying To Save You Money During These 'Uncertain Economic Times'
The province just released its economic statement.
The Ontario government just released the 2022 Fall Economic statement as inflation takes a toll on the average joe.
The statement addresses how the province plans to deal with Ontario's labour shortage and economy while keeping costs down for Ontario families, according to a government handout.
Finance Minister Peter Bethlenfalvy addressed the strain inflation has caused on household budgets from the rising cost of everyday goods like groceries and gas, but he remains "confident" in the economy.
"I am confident in the resilience of Ontario's economy, its workers and its people. And I remain confident in our government's plan to maintain our fiscal flexibility, so we can provide targeted support to people and businesses today while building for the future," said Bethlenfalvy.
Doug Ford announced on Sunday that Ontarians will potentially be able to find everyday relief at the gas pumps up until December 2023 with a possible year extension on the gas tax cut.
The gas tax cut was introduced in July 2022 and cut the gas tax by 5.7 cents per litre and the fuel tax by 5.3 cents per litre. However, it is set to end this December 31, 2022.
Legislation for an extension on the gas tax cut was introduced today. Legislation to double the Guaranteed Annual Income System payment for about 200,00 low-income seniors for a year starting January 2023 is also set to be introduced.
This increase would help financially vulnerable seniors with a potential increase of just under $1,000 per person is passed.
While these new measures will help Ontario citizens save money, the resources to provide them don't come from thin air.
Ontario provided an update on its deficit, and it's currently projecting $12.9 billion, which means the government is spending a lot more money than it's bringing in.
While that number may seem staggering, it's actually on the decline and almost $7 billion less than 2022's budget, according to a government handout.
The government predicts the deficit will continue to decline in the coming years, dropping $8.1 billion from 2023 to 2024 and by $0.7 billion from 2024 to 2025.
Here are all the ways the Ontario government is saving you money in 2022.
Minimum wage hikes
In January 2022, the Ontario government raised the minimum wage to $15, and In October 2022, they bumped it up again to $15.50 per hour.
Travel deductions
In spring 2022, the Ontario government removed license plate renewal fees and stickers along with road tolls on Highway 412 and 418.
For those commuting, the government also got rid of "double fares" for transit riders going between most municipal transit and GO Transit in March 2022, according to a government handout.
Young riders also saw additional discounts added to PRESTO in March 2022, making travel more affordable.
Gas Tax Cuts
In July 2022, gas tax cuts were introduced for six months to combat rising prices, and the Ontario government just proposed a 12-month extension on the program, which could save the average Ontario family $195 by December 2023, according to a press release.
2021 & 2022 Tax Returns
2021 tax return credits provided relief for low-income families and seniors to make their homes safe, child care, and job training. With tax credits such as the Low-Income Individuals and Families Tax credit which provides a maximum credit of $850 or 5.05% of your employment income in Personal Income Tax relief, the Ontario Childcare Access and Relief from Expenses credit, the Senior's Home Safety Tax credit and the Ontario Jobs Training Tax Credit.
In 2022 the same tax return credits are available in addition to the Ontario Staycation Tax Credit, which allows 20% of accommodation expenses to be covered up to $1,000 for individuals and up to $2,000 for families.
Support programs and payments
In September 2022, the Ontario government increased the rates of income support for the Disability Support Program, which provides services for children with severe disabilities, by five percent monthly, according to a press release.
The following month Ontario offered one-time Catch Up Payments of $200 to $250 for parents whose kids needed help after the pandemic setback for tutoring or supplies, according to the Ontario government.
Looking ahead to 2023, the government has proposed legislation to double the guaranteed Annual Income System payment for low-income seniors, which will bring hundreds of dollars in savings if passed.