Article 1: Ontario’s 2025 Tax Cuts for Small Businesses

Ontario’s Cutting Taxes on Small Businesses Act, 2025 (Bill 12) introduces two key changes:
1. The Ontario small business deduction rate increases from 8.3% to 9.9%.
2. The business limit for that deduction rises from $500,000 to $600,000.

These amendments take effect January 1, 2026.

This article explains what these changes mean for small and medium-sized businesses—especially in Toronto, Mississauga, and Hamilton—and outlines steps to take advantage of them.

What’s Changing & When

– Deduction Rate Increase: The provincial small business tax rate jumps from 8.3% to 9.9%.
– Higher Claim Limit: The annual eligible active business income rises from $500,000 to $600,000.
– Effective Date: Both changes are enacted from January 1, 2026.

Regional Impact

– Toronto: Tech startups and professional services can benefit from a broader deduction base.
– Mississauga: Logistics and industrial enterprises can allocate tax savings toward automation or upgrades.
– Hamilton: Manufacturing and retail businesses will see improved post-tax cash flow.

What Business Owners Should Do

1. Forecast your 2026 income and plan budgets accordingly.
2. Review corporate structures if nearing thresholds.
3. Engage accountants to ensure filings are aligned with new deduction rules.
4. Maintain accurate records for T2 returns.

References

Ontario Legislative Assembly: https://www.ola.org/en/legislative-business/bills/parliament-44/session-1/bill-12

Article 2: Ontario Small Claims Court Overhaul: What Business Owners Should Know

Ontario is implementing two major reforms to the Small Claims Court in 2025:

1. Procedural updates to modernize rules and improve efficiency, effective June 1, 2025.
2. A monetary jurisdiction increase—the maximum claim rises from $35,000 to $50,000, and the appeal threshold increases from $3,500 to $5,000, effective October 1, 2025.

Key Procedural Updates

– New Trial Management Conferences streamline case planning and reduce delays.
– Updated cost provisions in Rules (19, 20) for clarity.
– Modernized forms make filing more intuitive.

Why These Changes Matter

– Greater Access to Justice: More disputes can be resolved affordably.
– Cost-Effective Resolution: Avoid costly Superior Court for claims under $50,000.
– Self-Representation Friendly: Simplified rules reduce barriers for individuals and businesses.

Implications for Businesses

– Retailers & Vendors: Recover larger unpaid invoices.
– Contractors & Manufacturers: Manage disputes up to $50,000 within Small Claims Court.
– Legal Strategy: Delay filing (if possible) to take advantage of the new $50,000 cap.

References

Cohen Highley LLP: https://cohenhighley.com/news/effective-june-1-2025-key-changes-to-the-small-claims-court-rules/

Remiel Law: https://www.remiellaw.ca/post/ontario-raises-small-claims-court-limit-to-50-000-what-it-means-for-you

Article 3: Protect Ontario by Cutting Red Tape Act, 2025 – What Small Businesses Need to Know

In June 2025, the Ontario government introduced the Protect Ontario by Cutting Red Tape Act, 2025 (Bill 46), part of the broader Spring 2025 Red Tape Reduction Package.
The legislation reduces regulatory burdens and is expected to save $5.8 million and 256,000 administrative hours annually.

Key Measures

– Streamlined administration for Northern Ontario Small Business Enterprise Centres.
– Consumer loyalty programs: Reward points cannot expire unless per regulation.
– Digital access: Toronto’s financial audits can now be posted online instead of in print.
– Modernized court and regulation frameworks to reduce friction.

Implications for Small Businesses

– Lower compliance costs.
– Improved competitiveness and efficiency.
– Enhanced customer trust through loyalty program fairness.

References

Ontario Newsroom: https://news.ontario.ca/en/release/1005993/ontario-cutting-red-tape-to-protect-workers-families-and-jobs

Fasken: https://www.fasken.com/en/knowledge/2025/07/ontario-continues-consumer-protection-modernization-with-revisions-to-reward-point

Article 4: Transparency & Ghosting Laws in Hiring—Ontario Employers Need to Act Now

Starting January 1, 2026, Ontario will enforce a “duty to inform” requirement for employers, making it illegal to “ghost” job candidates who have been interviewed for publicly advertised roles.

Employers with 25+ employees must notify candidates within 45 days of their interview result. Failure to do so can result in complaints, fines, and reputational damage.

What the Law Requires

– Employers must notify candidates within 45 days of interviews.
– Maintain proof of communication for three years.
– Job postings must disclose salary ranges, AI use, and remove “Canadian experience” requirements.
– Penalties may reach CAD $100,000.

Why It Matters

– Improves candidate experience and fairness.
– Reduces reputational risk for employers.
– Ensures compliance with evolving labour market standards.

Steps for Employers

1. Review hiring workflows to ensure compliance.
2. Ensure transparency in job postings.
3. Train HR teams on the new requirements.
4. Prepare for Ministry of Labour compliance checks.