On October 29, the Ontario government released its 2026 Fall Economic Statement/Ontario Economic Outlook and Fiscal Review, an update on the province’s finances.
This post outlines the key measures in the Fall Economic Statement (FES) that matter most to small businesses.
NEW: Ontario Competitiveness Tax Cut
The government announced the new $8 billion Ontario Competitiveness Tax Cut, a measure that mirrors the federal government’s Productivity Mega Deduction announced on September 15, 2026. Following the passage of federal legislation, eligible Ontario businesses of all sizes and income levels would be able to immediately write off 100% of the value of a wide range of capital investments, such as fibre-optic cable, computer equipment and software, aircraft, vehicles purchased brand new and fully assembled in Canada, machinery and equipment, patents, and private infrastructure like rail tracks, bridges, and roads.
NEW: No Impact on Small Businesses from Ontario Electricity Rebate Change
To maintain affordability and sustainability of the Ontario Electricity Rebate, effective May 1, 2027, the government’s continued monthly credit will be capped at 1,200 kilowatt-hours for residential customers only. Small businesses and farms will be excluded from this change.
Previously-Announced Actions
Lower Small Business Tax Rate
The FES mentions the permanent 3.2% to 2.2% cut to the Small Business Tax Rate (SBTR) that took effect July 1, 2026. This measure is expected to benefit over 375,000 small businesses in all sectors across the province with savings of up to $5,000 every year.
In over 50 pre-budget meetings at Queen’s Park, CFIB’s Ontario Legislative Team showed elected representatives – including Finance Minister Bethlenfalvy – the urgency to small businesses and the economy of lowering the SBTR. Ontario small business owners signed over 11,000 CFIB petitions asking for this tax change.
Lower WSIB Premiums
The FES includes the Workplace Safety and Insurance Board (WSIB)’s 2026 average premium rate reduction to $1.23 per $100 of insurable payroll, the lowest level in more than 50 years.
On October 22, 2026, the government announced that the WSIB’s average premium rate will decrease again in 2027 to $1.18 per $100 of insurable payroll. This represents the eighth time in the last 11 years that the WSIB has reduced the average premium rate, bringing it down by about 50% since 2018.
Over many years, CFIB’s Ontario Legislative Team has relentlessly fought for lower WSIB premiums and WSIB surplus rebates, securing $5.2 billion in surplus rebates for businesses of all sizes since April 2022.
Less Red Tape through Business Permit Review
The government reannounced its review of Ontario’s 375 business-facing permits over three years, with the goal of eliminating, streamlining or transforming 35% to 50% of them by the end of 2028.
According to the FES, the review process is already more than 50% complete in less than a year. By the end of 2026, over 190 permits will have been reviewed. Ontario is cutting the time the province spends processing permits by nearly 220,000 days.
The Deficit and Slower Path to Balance
The province’s 2026–27 deficit is projected to be $16.9 billion, which represents a $3.1 billion increase from the outlook published in the 2026 Ontario Budget. The government has a plan to balance the budget by 2029-30.
Next Steps
We look forward to reviewing the Fall Economic Statement in detail and participating in the government’s 2027 pre-budget consultations. During these consultations, we will focus on the five key advocacy priorities determined by our members in a CFIB survey, including:
*achieved on October 22, 2026 when the Ontario government announced the 2027 average premium rate reduction