Toronto, October 27, 2026 – As the Ontario legislature begins its Fall Legislative Session today, the Canadian Federation of Independent Business (CFIB) released the top five priorities of its 40,000 small- and medium-sized business members representing all sectors across the province. The list includes recommendations to further reduce the cost of doing business through corporate and payroll tax measures, less red tape, and lower energy costs.
“Our members told us in an August survey that they need more direct support from the Ontario government to navigate the recent 50% U.S. tariffs, persistent low demand for their goods and services, and ever-rising costs coming from all fronts,” said Angela Drennan, CFIB’s Ontario Vice-President of Legislative Affairs. “They greatly appreciated the Ontario government’s permanent 3.2% to 2.2% reduction to the Small Business Tax Rate announced in the last budget. Now, their top ask of government is to raise the threshold for this tax, so they can pay the lower rate up to a higher amount of income.”
Small businesses also see decreasing payroll taxes as priorities through actions to lower Workplace Safety and Insurance Board (WSIB) premiums, distribute more WSIB surplus rebates, and raise the Employer Health Tax exemption threshold.
“Our members welcomed the Ontario government’s recent announcement about lowering the WSIB’s average premium rate for 2027,” said Julie Kwiecinski, CFIB’s Ontario Director of Provincial Affairs. “The board’s funding level is still high enough to also withstand another distribution of surplus rebates as a tariff relief measure to the premium-paying businesses who fund the WSIB.”
Below are CFIB’s top five provincial priorities determined by Ontario members. CFIB will work this fall and into the new year on urging the Ontario government to adopt these recommendations.
1. Increase the Small Business Tax Rate (SBTR) threshold from $500,000 to at least $700,000 and index it to inflation annually.
• This would help around 23,000 small businesses with savings of up to $18,600 a year per small business.
• Had the threshold been indexed to inflation since the last increase in 2007, it would now stand at around $752,000.
• Eligible small businesses pay the 2.2% SBTR on active business income up to the threshold and the general corporate income tax rate of 11.5% above it.
2. Continue to eliminate provincial red tape, allowing the government’s burden reduction efforts – on interprovincial trade and permitting, for example – to be felt on the ground by all small businesses.
3. Secure another round of WSIB surplus rebates and lower WSIB premiums.
• The Ontario government announced another reduction to the WSIB’s average premium rate on October 22. This latest decrease will take effect January 1, 2027.
• The WSIB’s target funding range is 110% to 120%, and it has a policy in place to avoid falling below 110%. According to the latest public data, the WSIB’s funding level was 117.1% with a surplus of $6.13 billion for Q4 2025.
• The WSIB is funded entirely by employer-paid premiums and the investment earnings the premiums make possible.
4. Increase the Employer Health Tax (EHT) exemption threshold from $1 million to $2.25 million and index it to inflation annually, instead of every five years.
• The EHT threshold was last increased in 2020, when the Ontario government temporarily raised it from $490,000 to $1 million as a COVID relief measure. This increase was made permanent in 2021.
• The next inflationary adjustment is set for January 1, 2029.
5. Increase the Tiered pricing plan threshold for small business electricity customers (now at 750 kilowatt-hours per month).
• More details will be available in CFIB’s upcoming Energy Report to be released soon.
For media inquiries or interviews, please contact:
Dariya Baiguzhiyeva, CFIB
647-464-2814
public.affairs@cfib.ca
About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 103,000 members across every industry and region, including 40,000 in Ontario. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.