Legislative Roundup

British Columbia

Province names trio to Fair Wages Commission

British Columbia has launched a three-member commission to direct the province on how to raise the minimum wage to $15. Labour Minister Harry Bains officially announced the Fair Wages Commission on Oct. 5.

The commission, which will function at an arm’s length to government, is tasked with putting forward a plan to raise the minimum wage to $15 an hour and making recommendations to address the discrepancy between the minimum wage and living wages. Members will also be considering and making recommendations around other wage rates under the Employment Standards Regulation.

Professor and economist Marjorie Griffin Cohen will oversee the work of the commission as chair, with vice-president of the B.C. Business Council Ken Peacock and union leader Ivan Limpright serving as members.

The Fair Wages Commission has been directed to work with economists, trade unions, the technology sector, small businesses, youth and others from all regions of the province to put forward a plan to bridge the gap between the minimum wage and the living wage in B.C.

Budget proposes new tax rate

The British Columbia government is proposing to create a new income tax rate of 16.8 per cent in 2018 for individuals with a taxable income exceeding $150,000, Finance Minister Carole James announced in releasing the province’s updated 2017 budget on Sept. 11.

The budget also proposes to reduce Medical Services Plan (MSP) premiums by 50 per cent for all B.C. residents as of Jan. 1, 2018. With the announcement, the maximum premium for single individuals would decrease from $75 a month to $37.50.

For a couple, the maximum premium would go from $150 per month to $75. In addition, the threshold at which households would be fully exempt from premiums would increase by $2,000.

The changes would affect employers with MSP group plans who deduct premiums from employees and remit them to the government and those who pay premiums for their employees as a taxable benefit.

The proposal differs from the previous Liberal government’s plan, announced in its February budget, which would have reduced premium rates next year by 50 per cent only for households with annual net incomes of up to $120,000.

Under the Liberal plan, residents had to register with the government if they wanted their rates reduced unless they receive premium assistance. No registration would be required for the new rate reduction that James proposed.

She also reiterated a previous announcement that the government plans to abolish MSP premiums during its mandate. She said the government would set up a task force to study ways to eliminate premiums and replace their revenues by 2021.

James also said the government is committed to eventually raising the provincial minimum wage rate to $15 an hour and that it will set up a commission to help with this.

The budget also proposes to reverse the previous government’s decision to eliminate an education tax credit claimed on a British Columbia Personal Tax Credits Return (TD1BC) next year.

Budget documents show that the new government plans to go ahead with the previous government’s proposal to create a non-refundable tax credit for volunteer firefighters and search and rescue volunteers, beginning with the 2017 tax year.

To be eligible for the tax credit, provincial residents would have to provide at least 200 hours of volunteer service to either a volunteer fire department, an eligible search and rescue organization or a combination of both. The maximum credit amount would be $3,000.

Manitoba

Security guard minimum wage staying at $12.50

Manitoba is keeping the security guard minimum wage rate at $12.50 an hour.

Under the Employment Standards Regulation, the rate was set to rise to $13.40 on Oct. 1 as part of a plan to phase-in a higher minimum wage rate for security guards who hold a licence issued under The Private Investigators and Security Guards Act.

The rate change would have put the security guard rate at $2.25 more per hour than the general minimum wage rate, which rose to $11.15 an hour on Oct. 1. However, in late September, the provincial government amended the regulations to remove the $2.25 requirement and set the rate for licenced security guards at $12.50 as of Oct. 1.

Nova Scotia

Some tax credits to increase in 2018

The Nova Scotia government is planning to raise some of the non-refundable tax credits claimed on a provincial TD1 next year.

Minister of Finance and Treasury Board Karen Casey announced the changes when she presented the province’s 2017-2018 budget on Sept. 26. The government had previously tabled a budget in April, but called an election before the legislature could pass the proposals.

The September budget proposes to increase the basic personal amount claimed on a Nova Scotia Personal Tax Credits Return (TD1NS) by up to $3,000 (from $8,481 to $11,481) for individuals with taxable incomes of no more than $75,000. It also proposes to increase the spousal and eligible dependent amounts from $8,481 to $11,481 and to raise the age amount claimed on the form from $4,141 to $5,606. The changes would apply as of Jan. 1, 2018.

The budget did not contain any proposals to increase personal income tax rates or the harmonized sales tax rate.

Ontario

Business coalition urges slowdown on ESA changes

A coalition of business groups is calling on the provincial government to rethink some of its proposed employment standards amendments and to slow down the pace of the changes.

The Keep Ontario Working Coalition released an economic analysis of Bill 148, the Fair Workplaces, Better Jobs Act, 2017 in late September. The report, by the Canadian Centre for Economic Analysis, says the amendments in the bill pose a $23-billion cost challenge to businesses over two years.

The bill proposes to make wide-ranging changes to the Employment Standards Act, 2000 and the Labour Relations Act, 1995. The employment standards amendments would take effect in 2018 and 2019.

They would include raising the minimum wage to $15 by 2019, giving all employees access to 10 personal emergency leave days per year, with two of the days paid, increasing vacation time from two weeks to three weeks after five years of employment with the same employer, and more stringent rules for employee scheduling.

The coalition says the report shows that the amendments will increase business costs and could lead to job losses, which would hurt the province’s economy.

“Business and government must work together to avoid unintended consequences and protect our most vulnerable,” said Karl Baldauf, vice-president of policy and government relations at the Ontario Chamber of Commerce, one of the members of the coalition.

Premier Kathleen Wynne has said the government will provide support to farmers and small businesses to help them adjust to the changes, but has not yet provided details.

Yukon

Income tax amendments tabled

The Yukon government has tabled amendments that would harmonize its income tax legislation with recent federal changes affecting tax credits claimed on a TD1, Personal Tax Credits Return.

In this year’s federal budget, the government announced that, beginning with the 2017 tax year, it would replace the infirm dependent credit, caregiver credit and family caregiver tax credit claimed on the TD1 with a new Canada caregiver credit.

Bill 10, an Act to Amend the Income Tax Act (2017), which Premier Sandy Silver tabled in the Yukon Legislative Assembly on Oct. 5, would make similar changes to the territorial tax credits claimed on a TD1YT, Yukon Personal Tax Credits Return.

The bill would also amend the act to stipulate that the territory’s pension tax credit may only be claimed by individuals in a tax year if they are resident in Yukon on the last day of that tax year.