The year 2018 has arrived, which means that a series of new laws in Canada have begun to be implemented nationwide, including a reduction in the small business tax rate to 10% and the reopening of immigration applications for parents and grandparents. The implementation of these new policies will closely affect the lives of Canadians, including new immigrants. Let’s take a look at the specific new policies that are closely related to your life.
Reduction of Small Business Tax Rate to 10%
Starting from January 1, 2018, the small business tax rate in Canada will be reduced from the previous 10.5% to 10%. At the same time, other changes will be made to the small business tax law. However, these tax reform policies are theoretically set to take effect from January 1, 2018, but will actually be realized when filing taxes in 2019 (for the 2018 tax year).
Reopening of Immigration Applications for Parents and Grandparents
The immigration program for parents and grandparents in Canada reopened for applications on January 2, 2018, still in a lottery format, with an acceptance rate of approximately 10%. The quota for family reunification immigration remains at 20,000, with 10,000 allocated to applicants participating in the random lottery and another 10,000 used to clear backlogged cases.
Canadian citizens or permanent residents interested in sponsoring their parents or grandparents can begin submitting the "Interest to Sponsor" form online. The deadline for the immigration department to accept applications is noon on February 1, 2018.
Extension of Maternity Leave to 18 Months
Starting from December 3, 2017, the paid maternity or parental leave for new parents under the EI system will be extended from the previous 12 months to 18 months. The federal government will also implement a new caregiver benefit: if a caregiver needs to take care of a seriously ill or injured adult at home, the government allows this caregiver to take a 15-week leave to care for their family. If a child at home is seriously ill or injured, the caregiver can apply for a 35-week leave benefit.
Minimum Wage Increased to $14
Starting from January 1, 2018, the minimum wage in Ontario, Canada, will be increased from the previous $11.60 to $14. Currently, Alberta, which has the highest minimum wage in Canada, will increase from $13.60 to $15 starting January 1 of this year.
The labor law reforms in Ontario also include: after working for the same company for 5 years, paid annual leave will increase from the current two weeks to three weeks; all employees should have 10 days of emergency leave each year, of which 2 days must be paid by the employer, and no doctor's note is required to present to the employer.
Free Medications for Individuals Under 24
Starting from January 1, 2018, Ontario has launched the OHIP+ program, also known as the Children and Youth Pharmacare Program, which allows individuals under 24 in the province to obtain medications for free at pharmacies, as long as these prescription medications prescribed by doctors belong to one of the 4,400 covered drugs, they can receive them at no cost. It is reported that these medications include treatments for cancer and other difficult diseases.
Once the new policy is implemented, Ontario will be the first province in Canada to launch a similar drug coverage program, but the provincial government will incur an additional annual expenditure of $465 million for this.
Adjustment of Alcohol Tax
Based on the inflation rate, the federal government will adjust alcohol taxes starting in 2018, including consumption taxes on beer, wine, and other alcoholic beverages, with the official implementation date set for April 1 of this year.
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