On Wednesday, March 24th, Ontario Finance Minister Peter Bethlenfalvy unveiled the province’s 2021 budget. This spending plan focused on healthcare, small businesses, and families with several key financial proposals. Read more about the 2021 budget announcement.
Support for Small Businesses
The Ontario Small Business Support Grant will be expanded with a second round of $10,000 to $20,000 grants for eligible small businesses. Availability for this grant requires businesses to:
- Have temporarily closed or significantly restricted services due to provincial public health measures;
- Have less than 100 employees; and,
- Expect a decline in revenue of 20% or more due to the province-wide shutdown.
Other conditions and details may apply. Those businesses which received the grant initially need not reapply for the second round of the grant. Additionally, the government will introduce a program for the tourism and hospitality industries to provide a similar $10,000 to $20,000 grant for operators meeting similar requirements but not eligible for the general small business grant.
A new job training tax credit will provide up to $2,000 for individuals to cover 50% of eligible job training expenses.
Child Care Benefits
The Minister also announced a third round of the Ontario COVID-19 Child Benefit. This benefit will provide an additional payment, and this time doubled for eligible children – $400 per child or $500 per child with special needs.
The Ontario child care tax credit (CARE) will increase by 20% for 2021. You can find requirements and amounts for CARE at: https://www.ontario.ca/page/ontario-child-care-tax-credit. This credit had not been updated at the time of writing to reflect the 20% increase for 2021.
With projected spending increases for hospitals and long-term care facilities, and the economy-boosting programs mentioned above, the Minister summarized this as a budget resulting in debt and deficits but to support healthcare and increase jobs in Ontario.
Stay tuned for more from the Federal Budget announcement on April 19th!