[39] Bill 23 Original (PDF)
Bill 23 2010
An Act to amend the Ontario Disability Support Program Act, 1997 and the Taxation Act, 2007
Note: This Act amends or repeals more than one Act. For the legislative history of these Acts, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.
Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
Ontario Disability Support Program Act, 1997
1. Section 5 of the Ontario Disability Support Program Act, 1997 is amended by adding the following subsections:
Asset requirements
(1.1) Despite subsection 27 (1) of Ontario Regulation 222/98 (General) made under the Act but subject to subsection 27 (2) of that Regulation, the prescribed limit for assets for a benefit unit, for the purpose of clause (1) (c), is equal to the sum of,
(a) $12,000;
(b) $8,000, if there is a spouse included in the benefit unit; and
(c) $500 for each dependant other than a spouse.
Retaining child support and some other income
(1.2) Despite anything in the regulations, for the purpose of clause (1) (c), the monthly income for a member of a benefit unit shall not include,
(a) payments made for the maintenance of a child under a court order or written agreement;
(b) if there is not a spouse included in the individual's benefit unit, the lesser of $700 and the amount by which the sum of the member's gross monthly income from employment, the amounts paid to the member under a training program and the member's net monthly income as determined by the Director from an interest in or operation of a business exceeds the total of applicable deductions under the regulations; or
(c) if there is a spouse included in the individual's benefit unit, the lesser of $1,000 and the amount by which the sum of the member's gross monthly income from employment, the amounts paid to the member under a training program and the member's net monthly income as determined by the Director from an interest in or operation of a business exceeds the total of applicable deductions under the regulations.
Definition
(1.3) In subsection (1.2),
"spouse" means spouse as defined in Ontario Regulation 222/98 (General) made under the Act.
Appropriation
(1.4) No payment of income support shall be made based on the eligibility requirements set out in subsections (1.1) and (1.2) unless the Legislative Assembly by appropriation authorizes the payment.
Taxation Act, 2007
2. (1) Section 9 of the Taxation Act, 2007 is amended by adding the following subsections:
Tax credit for employing disabled persons
(23) Subject to subsection (24), if an individual employs a person who receives income support under the Ontario Disability Support Program Act, 1997 during a taxation year, the individual is entitled to a tax credit for the year calculated using the formula,
A × KK
in which,
"A" is the lowest tax rate for the year, and
"KK" is the lesser of $10,000 and the amount of salary or wages paid to the person for that employment during the year.
Same, maximum number of persons
(24) An individual is entitled to claim a tax credit under subsection (23) for the lesser of five and the number of persons whom the individual employs during the taxation year and who receive income support under the Ontario Disability Support Program Act, 1997 during the year.
(2) Section 10 of the Act is amended by striking out "(22)" in the portion before the formula and substituting "(24)".
(3) The Act is amended by adding the following section:
Tax credit for employing disabled persons
34.1 (1) A corporation that employs a person who receives income support under the Ontario Disability Support Program Act, 1997 during a taxation year may, in computing its tax payable under this Division for the year, deduct a tax credit equal to the lesser of,
(a) the corporation's taxable income earned in Canada for the year; and
(b) the amount calculated under subsection (2) for the lesser of five and the number of persons whom the corporation employs during the year and who receive income support under the Ontario Disability Support Program Act, 1997 during the year.
Amount per employee
(2) The amount mentioned in clause (1) (b) for a person employed by the corporation is calculated using the formula,
A × B
in which,
"A" is the lowest tax rate for the year, and
"B" is the lesser of $10,000 and the amount of salary or wages paid to the person for that employment during the year.
Commencement and Short Title
Commencement
3. This Act comes into force on the day it receives Royal Assent.
Short title
4. The short title of this Act is the Enhancing the Ability of Income Support Recipients to be Financially Independent Act, 2010.
EXPLANATORY NOTE
The Bill amends the Ontario Disability Support Program Act, 1997 and the Taxation Act, 2007.
Under the Ontario Disability Support Program Act, 1997, the Bill raises the asset limits that apply in determining whether a person is eligible for income support so that the person can have $12,000 individually or $20,000 if there is a spouse included in the benefit unit. In addition, child support payments that a person receives are not included in income for the purpose of determining the amount of income support for which the person is eligible. At present, the amount of income support that a person is eligible to receive is reduced by 50 per cent of the person's other monthly income. The Bill lowers the reduction so that a person can retain a maximum of $700 of other income monthly or a maximum of $1,000 of other monthly income if there is a spouse included in the individual's benefit unit.
Under the Taxation Act, 2007, an employer that employs a person who receives income support during a taxation year is entitled to a non-refundable tax credit based on a maximum of $10,000 that the employer pays to the person in salary or wages for the year. The tax credit is available for a maximum of five employees.