Government introduces health premiums for employees, plans to tackle foreign credentials and strengthen apprenticeship program
The Ontario government is scrapping coverage for chiropractors, physiotherapists and eye exams and introducing a new health tax in an effort to improve health care and tackle the province’s deficit.
Starting on July 1, 2004, the Ontario Health Premium will be charged to any employee earning $20,000 or more. (See box below for a list of premiums.) The health premium is expected to generate $1.6 billion for the government in 2004-05.
It is also pumping money into recognizing foreign credentials and expanding the apprenticeship program. Below is a quick look at what the province announced in the May 18 budget.
Items of interest for employers
Finance Minister Greg Sorbara touched on a number of initiatives that could have some impact in the workplace, including:
Cutting back on medical services:To improve cancer care and cardiac care, home care and long-term care, the government is delisting what it calls “less critical” services including:
•the cost of routine optometry exams, except for seniors and Ontarians under 20 years old;
•chiropractic services; and
•physiotherapy services, with the exception of seniors, who will continue to receive physiotherapy through home care and long-term care facilities.
Smoke-free workplaces: The government announced its intention to introduce legislation that would make all workplaces and public places smoke-free by 2007.
Skills shortage: Sorbara said the province is facing a shortage of workers in the skilled trades and other technical occupations. In recognition of the role colleges play in tackling the shortage, the government is pumping $20 million into updating technology and equipment at colleges and $25 million as one-time college stabilization funding, targeted primarily at smaller rural and northern colleges.
Apprenticeship program: The government is launching a new apprenticeship training tax credit to encourage employers to hire and train apprentices in skilled trades. It is also increasing funding to classroom training for the apprenticeship program. By 2007-08, 26,000 young people will be entering apprenticeships each year. it said.
Corporations and unincorporated businesses would be eligible for a 25 per cent refundable tax credit on salaries and wages paid. For businesses with total payrolls of up to $400,000, the tax credit would increase to 30 per cent.
An employer would be eligible for a tax credit of up to $5,000 per year per eligible apprentice to a maximum of $15,000 over the first 36 months of the apprenticeship.
Foreign-trained workers: About 125,000 people immigrate to Ontario from around the world every year. The government said it will start “to tear down the barriers that face immigrants trying to enter the trades and professions. We will invest $9.5 million this year, growing to $12.5 million in 2005-06, to improve foreign-trained workers’ access to the jobs they are trained to perform.
The province will:
•work with professional regulatory bodies and employers to increase access and eliminate barriers to credential recognition and job entry;
•expand training and employment services to help internationally trained individuals make the transition to Ontario’s workforce; and
•improve information on employment opportunities and requirements for individuals considering immigration to Ontario.
Mental health: Sorbara said too many Ontarians suffer from mental health problems. The government is introducing a four-year plan to provide community-based mental health services to an additional 78,000 residents.
More nurses: Over the next four years, Ontario will create 8,000 full-time nursing positions.
More teachers: The government wants to decrease class sizes in schools, and will phase in a cap of 20 children per class from junior kindergarten to Grade 3. It will also fund training spaces for 1,000 additional teachers in 2005-06 to ensure there are enough educators on hand to implement reforms.
Public transit: The government will introduce legislation to create a Greater Toronto Transporation Authority to ensure a more seamless transportation system in the Toronto area. It is supporting the O-Train project in Ottawa and a light-rapid transit project in the Waterloo area.
Child care: Ontario will work with municipal governments to create an additional 4,000 subsidized day-care spaces.
Post-secondary education: Former Ontario NDP Premier Bob Rae has agreed to conduct a comprehensive review of post-secondary education in Ontario. His mandate will be to recommend how the province can provide students with the best education.
Eliminating the capital tax: The government said Ontario’s capital tax is widely recognized as a barrier to attracting the investment the province needs to build an innovative economy of high-wage and high-skill jobs. The government proposes to implement a prudent plan to gradually eliminate the capital tax by 2012:
•Starting Jan. 1, 2005, the current $5 million deduction from taxable paid-up capital would increase by $2.5 million each year until the deduction reaches $15 million on Jan. 1, 2008.
•Staring Jan. 1, 2009, capital tax rates would be reduced each year until the capital tax is fully eliminated on Jan. 1, 2012.
Filling the medical skills shortage:Over the next year, the Ministry of Health and Long-Term Care will work with the Ministry of Training, Colleges and Universities to implement a comprehensive HR development strategy, the province said.
The plan is to increase the supply of health care professionals. The government will:
•more than double the number of training positions for international medical graduates to 200 from 90, at an additional cost of $12 million for 2004-05, growing to $25 million in 2007-08;
•double the number of clinical education spaces for nurse practitioners to 150 from 75 spaces in three years, through an investment of $2 million annually starting in 2005-06;
•provide $2 million, starting this year, to support experienced nurses who mentor nursing trainees completing their clinical practice training; and
•purchase 12,000 lift beds for hospitals and long-term care facilities to improve working conditions for nurses and help prevent on-the-job injuries at a cost of $60 million in 2004-05.
Health premium
Starting on July 1, 2004, the Ontario Health Premium will be charged to any employee earning $20,000 or more. (See box below for a list of premiums.) The health premium is expected to generate $1.6 billion for the government in 2004-05.
It is also pumping money into recognizing foreign credentials and expanding the apprenticeship program. Below is a quick look at what the province announced in the May 18 budget.
Items of interest for employers
Finance Minister Greg Sorbara touched on a number of initiatives that could have some impact in the workplace, including:
Cutting back on medical services:To improve cancer care and cardiac care, home care and long-term care, the government is delisting what it calls “less critical” services including:
•the cost of routine optometry exams, except for seniors and Ontarians under 20 years old;
•chiropractic services; and
•physiotherapy services, with the exception of seniors, who will continue to receive physiotherapy through home care and long-term care facilities.
Smoke-free workplaces: The government announced its intention to introduce legislation that would make all workplaces and public places smoke-free by 2007.
Skills shortage: Sorbara said the province is facing a shortage of workers in the skilled trades and other technical occupations. In recognition of the role colleges play in tackling the shortage, the government is pumping $20 million into updating technology and equipment at colleges and $25 million as one-time college stabilization funding, targeted primarily at smaller rural and northern colleges.
Apprenticeship program: The government is launching a new apprenticeship training tax credit to encourage employers to hire and train apprentices in skilled trades. It is also increasing funding to classroom training for the apprenticeship program. By 2007-08, 26,000 young people will be entering apprenticeships each year. it said.
Corporations and unincorporated businesses would be eligible for a 25 per cent refundable tax credit on salaries and wages paid. For businesses with total payrolls of up to $400,000, the tax credit would increase to 30 per cent.
An employer would be eligible for a tax credit of up to $5,000 per year per eligible apprentice to a maximum of $15,000 over the first 36 months of the apprenticeship.
Foreign-trained workers: About 125,000 people immigrate to Ontario from around the world every year. The government said it will start “to tear down the barriers that face immigrants trying to enter the trades and professions. We will invest $9.5 million this year, growing to $12.5 million in 2005-06, to improve foreign-trained workers’ access to the jobs they are trained to perform.
The province will:
•work with professional regulatory bodies and employers to increase access and eliminate barriers to credential recognition and job entry;
•expand training and employment services to help internationally trained individuals make the transition to Ontario’s workforce; and
•improve information on employment opportunities and requirements for individuals considering immigration to Ontario.
Mental health: Sorbara said too many Ontarians suffer from mental health problems. The government is introducing a four-year plan to provide community-based mental health services to an additional 78,000 residents.
More nurses: Over the next four years, Ontario will create 8,000 full-time nursing positions.
More teachers: The government wants to decrease class sizes in schools, and will phase in a cap of 20 children per class from junior kindergarten to Grade 3. It will also fund training spaces for 1,000 additional teachers in 2005-06 to ensure there are enough educators on hand to implement reforms.
Public transit: The government will introduce legislation to create a Greater Toronto Transporation Authority to ensure a more seamless transportation system in the Toronto area. It is supporting the O-Train project in Ottawa and a light-rapid transit project in the Waterloo area.
Child care: Ontario will work with municipal governments to create an additional 4,000 subsidized day-care spaces.
Post-secondary education: Former Ontario NDP Premier Bob Rae has agreed to conduct a comprehensive review of post-secondary education in Ontario. His mandate will be to recommend how the province can provide students with the best education.
Eliminating the capital tax: The government said Ontario’s capital tax is widely recognized as a barrier to attracting the investment the province needs to build an innovative economy of high-wage and high-skill jobs. The government proposes to implement a prudent plan to gradually eliminate the capital tax by 2012:
•Starting Jan. 1, 2005, the current $5 million deduction from taxable paid-up capital would increase by $2.5 million each year until the deduction reaches $15 million on Jan. 1, 2008.
•Staring Jan. 1, 2009, capital tax rates would be reduced each year until the capital tax is fully eliminated on Jan. 1, 2012.
Filling the medical skills shortage:Over the next year, the Ministry of Health and Long-Term Care will work with the Ministry of Training, Colleges and Universities to implement a comprehensive HR development strategy, the province said.
The plan is to increase the supply of health care professionals. The government will:
•more than double the number of training positions for international medical graduates to 200 from 90, at an additional cost of $12 million for 2004-05, growing to $25 million in 2007-08;
•double the number of clinical education spaces for nurse practitioners to 150 from 75 spaces in three years, through an investment of $2 million annually starting in 2005-06;
•provide $2 million, starting this year, to support experienced nurses who mentor nursing trainees completing their clinical practice training; and
•purchase 12,000 lift beds for hospitals and long-term care facilities to improve working conditions for nurses and help prevent on-the-job injuries at a cost of $60 million in 2004-05.
Health premium
| Taxable income | 2004 taxation year | 2005 and subsequent tax years |
| Up to $20,000 | No premium | No premium |
| $20,000 to $36,000 | $150 | $300 |
| $36,000 to $48,000 | $225 | $450 |
| $48,000 to $72,000 | $300 | $600 |
| $72,000 to $200,000 | $375 | $750 |
| More than $200,000 | $450 | $900 |
