The Ontario Real Estate Association circulated the following information about the 2016 Ontario Budget, and what it means for REALTORS®.
The highlights from Ontario Budget 2016:
- Budget 2016 outlines the government’s plan to create jobs and grow the economy, invest in major infrastructure projects, low-carbon initiatives and programs to improve skills in Ontario’s workforce.
- Budget 2016 reaffirms and updates the government’s commitments to reform beer and alcohol sales, maximize the value of government assets and improve Ontarians retirement through the Ontario Retirement Pension Plan.
- Budget 2016 commits $100 million to a new home energy audit and retrofit rebate program. Home energy efficiency retrofit rebates for home owners was one of OREA’s recommendations to the 2016 Pre-Budget consultation.
- While there is no commitment to move forward on personal real estate corporations (PRECs), the 2016 Budget does not signal any intention to move forward with giving additional revenue tools (MLTT) to municipalities.
What does the 2016 Budget mean for Ontario REALTORS®?
- Municipal Land Transfer Tax (MLTT): We are happy to report that Budget 2016 does not reverse the province’s commitment not to give municipalities MLTT powers. OREA continues to monitor for legislation that would give any new revenue tools to municipalities.
- Personal Real Estate Corporations (PRECs): Unfortunately, the government did not include OREA’s pre-budget recommendation to permit the use of PRECs by real estate salespeople or brokers. OREA will continue to advocate for this proposal.
- Cap-and-Trade Initiative: Ontario will move forward with a cap-and-trade system as its carbon pricing mechanism. The government estimates that the cap-and-trade plan will add about 4.3 cents a litre to the price of gasoline and about $5 a month to natural gas bills.
- Ontario Home Energy Audits and Retrofits: The budget reconfirms the home energy audit and retrofit program introduced earlier this month. The program would invest $100 million from the Ontario Green Investment Fund to provide rebates for home owners with Enbridge or Union Gas to conduct an energy audit and retrofits recommended by the auditor. While OREA is supportive of the new program, we will continue to oppose any efforts to introduce mandatory home energy audits.
- Ontario Retirement Pension Plan/Pooled Registered Pension Plan: The budget announces the government’s commitment to move forward with the ORPP. The government also reaffirmed that their long term objective is to enhance the CPP.
- Changing Workplaces Review: OREA is currently involved in the Employment Standards Act, 2000 review, advocating to maintain the current exemption for real estate professionals. Budget 2016 announces that the Special Advisors leading the consultation will release their interim report by early 2016 and the full report in summer 2016.
- Healthy Homes Renovation Tax Credit (HHRTC): Budget 2016 announced that the HHRTC will end on January 1, 2017. The HHRTC was created to help seniors live independently in their homes by making renovations more affordable.
- Affordable Housing: The government announced that legislative and regulatory changes will be introduced to increase the supply and sustainability of affordable housing. In addition, Budget 2016 commits $178 million over three years to provide housing subsidies and support the construction of up to 1,500 new housing units.