May 2004

Personal Tax Measures

Health Care Premiums
To allow for improved health care the province has followed the lead of Alberta and BC, and is proposing that individuals pay the following premiums based on taxable income:

Income ($ 000's)	Proposed Premium	Subsequent  Tax Years
Up to $20	$0	$0
$20-$36	$150	$300
$36-$48	$225	$450
$48-$72	$300	$600
$72-$200	$375	$750
$200+	$450	$900

Health Care Services
Certain services not mandated under the Canada Health Act will no longer be covered by OHIP. These include: chiropractic services; optometry for those between the ages of 20 and 64; and physiotherapy services (not including services for seniors served through home care and long-term care facilities). In its place, the government has proposed to improve the availability of other major services and increase the health-care budget by $4.8 billion over the next four years.

"Sin" Taxes
The cost of a carton of cigarettes will increase by $2.50 effectively immediately. Smaller tax increases on alcoholic beverages are scheduled to take effect in June.

Property Tax Credit – Seniors
The basic property tax credit has been increased by $125 to $625.

Ontario Home Ownership Plan
No new plans will be registered and no new contributions can be made to existing plans.

Readers are urged to consult their professional advisors prior to acting on the basis of material in this newsletter. If you have any questions regarding the content of this newsletter, please contact Crawford, Smith & Swallow. Copies of the newsletter in PDF format are available on our website.