Ontario’s 2023 Pre-Budget Recommendations for the Path to Recovery

In preparation for Ontario’s 2023 Budget, we shared our pre-budget recommendations with government officials to make sure small business views are part of the discussion about the Ontario government’s finances. Ontario’s Minister of Finance will deliver the budget on March 23.

Our recommendations fall under several key areas, including Cost of Doing Business/Taxes, Labour Challenges, Red Tape, Internal Trade, Energy, Construction Mitigation, and Recycling.

Some of our asks under these topics include:

  • Take a “do no harm” approach to small business policy and at minimum, avoid introducing any new costs or administrative burdens on small businesses.
  • Gradually reduce the small business tax rate to 0%.
  • Increase the small business deduction threshold to at least $600,000 and index the threshold to inflation annually.
  • Tie the Employer Health Tax threshold to inflation annually.
  • Continue to urge more municipalities to adopt a small business property tax subclass.
  • Continue to reduce red tape and keep current regulatory accountability measures.
  • Extend the government’s work on recognizing out-of-province credentials.
  • Do not introduce employer-paid sick days.
  • Do not create an employer-paid portable benefits program.
  • Ensure that the Workplace Safety and Insurance Board continues to return surplus funds to employers, and decrease the 125% mandatory refund threshold to 115%.
  • Increase the existing small business year-round 750 kWh threshold for the tiered rate system to 3,000 kWh.
  • Provide small business support for electric vehicle charging stations.
  • Include a comprehensive construction mitigation package as part of all significant provincial construction projects that cause major disruptions for extended periods of time to the regular operations of local business owners.
  • Tie the $2 million Blue Box de minimis exemption to inflation on an annual basis.

For a full list of our recommendations, please read CFIB’s 2023 Ontario Pre-Budget Submission, The Path to Recovery.