What Ontario Small Businesses Want from Queen’s Park This Fall, and 3 Things to Check in Your Own Books
As Ontario’s legislature opened its fall session, CFIB released its top five Ontario priorities on Oct 27. They are: raise the small business tax rate threshold from $500K to $700K+, keep cutting red tape, push for another round of WSIB surplus rebates, raise the Employer Health Tax exemption from $1M to $2.25M, and raise the small-business electricity pricing threshold. Source: CFIB
Ontario’s legislature is back for its fall session, and the Canadian Federation of Independent Business (CFIB) has handed Queen’s Park a clear message from its 40,000 Ontario members: help us bring our costs down.
Their August survey showed businesses are still dealing with U.S. tariffs, soft demand and rising costs. CFIB’s top five asks give a useful snapshot of the cost pressures most Ontario owners feel.
What CFIB is asking for
A higher small business tax threshold. Ontario’s small business rate was recently cut permanently from 3.2% to 2.2%. That rate only applies to the first $500,000 of active business income, and anything above it is taxed at 11.5%. CFIB wants the threshold raised to at least $700,000 and indexed to inflation. It notes the threshold would be around $752,000 today if it had kept pace since 2007.
Less red tape, especially around permits and interprovincial trade.
Another round of WSIB surplus rebates. The province announced on Oct 22 that WSIB’s average premium rate will go down effective January 1, 2027. CFIB says the WSIB is well funded enough to also return more surplus to employers.
A higher Employer Health Tax (EHT) exemption. Right now, eligible employers don’t pay EHT on the first $1 million of Ontario payroll. CFIB wants that raised to $2.25 million.
A better deal on electricity, by raising the small-business tiered pricing threshold above 750 kWh a month.
None of these are law yet. But they point to some useful things to look at in your own numbers right now.
What you can check now
Where your corporate income sits. If your corporation’s income is getting close to $500,000, it’s worth talking with your accountant about year-end timing, salary vs. dividends, and what a threshold change could mean for you.
Your payroll vs. the EHT exemption. As your team grows, keep an eye on your total Ontario payroll. Once you go over $1 million, EHT kicks in, so it’s useful to know how much room you have and to plan for it.
Your WSIB premiums for 2027. Watch for your 2027 premium rate notice and make sure your budget reflects it. Check that you’re reporting insurable earnings accurately so you’re not overpaying.
Your hydro bills. If you’re a smaller user, look at how your monthly usage compares to the 750 kWh threshold.
The bottom line
Policy changes take time, but knowing where you stand puts you in a good spot to benefit when they happen. If you’d like help pulling these numbers together or getting your books ready for year-end, the Tidierbooks team is happy to help. Just reach out.
Written by Tidier Books | 25+ Years of Bookkeeping Experience
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