Ontario sending $200 rebates to 15 million people amid early election speculation

The Ontario government says it will send a $200 rebate cheque to roughly 15 million people in the province.

Theannouncement Tuesday comes as Premier Doug Ford has hinted he could call an early electionin 2025.

Ford and Finance Minister Peter Bethlenfalvyprovided details about the rebates at a news conference in Scarborough, one day before the government tables its fall economic statement a fiscal blueprint that anticipates the spring budget process.

The pair said the rebatesare necessary because many Ontarians are struggling with the high cost of living.

"We've been hearingfrom people all across the province that they are feeling the pinch," Bethlenfalvysaid.

The cheques will go to every taxpayer, as well as $200 for each child in an eligible family.

The rebateswill not be means-tested and are expected to be mailed out early in the new year, according to the finance ministry.

They will cost the provincial treasury about $3 billion. Ford said that money will come from increased provincial sales tax revenue due to higher inflation over the last few years, as well as revenue generated by the recent federal changes to the capital gains tax.

Speaking to reporters, Ford downplayed any connection between the possibility of an early election and the decision to provide the tax-free rebates.

"These are tax dollars going back to taxpayers who are struggling right now," he said.

A 'gimmick' and 'pre-election bribe,' opposition says

Opposition leaderscast the rebates as a pre-election gimmick and an attempt to distractvoters from the government's inactionon issues like housing and health care.

"Is this a pre-election bribe? Of course it is," said Ontario Liberal Leader Bonnie Crombie at Queen's Park.

"I would say the pace lately has been frenetic with things the government has been throwing against the wall to see what might stick," she continued. Crombie said her party would offer "sustainable relief" to taxpayers by implementing an income tax cut for middle class families.

WATCH | Ontario sending rebates to residents:

$200 rebates are coming to Ontario residents: How will it work?

11 days ago

Duration 2:58

The Ontario government says it will send a $200 rebate cheque to roughly 15 million people in the province. CBCs Lane Harrison has more on the announcement.

NDP Leader Marit Stiles said the cheques are an attempt to "buy the goodwill of the people" ahead of a possible election next year.

"It's nota solution the affordability crisis, it's not a solution to building the affordable homes people need, it's not a solution to getting a family doctor.So, I think people understand that it is a very limited measure and see through it for what it is," she said.

Meanwhile, Green Party Leader Mike Schreiner criticized the government for sending the cheques to even the wealthiest Ontarians, such asthe former CEO of Loblaw.

"It is ridiculous that millionaires and billionaires like Galen Weston are getting a $200 cheque when so many Ontarians cant afford a place to live tonight, 2.5 million people don't have access to a doctor, emergency departments are closingand this government thinks it's a good idea to send Galen Weston a cheque? Makes no sense to me," Schreiner said.

"This is a pre-election gimmick to distract from the premier's failure to address the housing affordability crisis and the fact that our health-care system is collapsing."

Ford blames carbon tax for high costs

During the news conference, Ford repeatedly pointedto the federal carbon tax as the cause for increases in the price of groceries, gasoline and other goods.

"That is money that families can use to pay off their credit card after the holidays, to buy a winter coat for their kids or to cover the cost of gassing up the family car to make up for the costs of the Liberal carbon tax," Ford said.

The controversial federal carbon tax is a frequent target for Ford and his ministers, who have repeatedly called for Ottawa to get rid of the levy. A 2023 analysis found a clear majority of Canadian households receive associated rebates that are larger than the carbon taxes they pay, and that scrapping the rebates would have a disproportionate negative impact on lower-income families.

The carbon tax cameinto effect at $20 per tonne in 2019. It has steadily climbed in the years since. It is scheduled to go up another $15 each year until 2030, when it reaches $170 a tonne. It currently adds another 17.6 cents per litre to the price of gasoline after the most recent increase on April 1.

In addition to Ontario, the carbon tax also applies to households in Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island,Manitoba, Saskatchewan, Alberta, Yukon and Nunavut.

Ninety per cent of the government revenues are returned to households in those provinces through a quarterly rebate program, with households receiving a quarterly payment based on family size. The other 10 per cent is to help grant recipients, such as businesses and schools, reduce their fossil fuel consumption.

On Sunday, the Ford government announced it would extend a 5.7-cent cut to the provincial gas taxthrough to next summer, keeping the levy at nine cents per litre until June.

The province first temporarily slashed the gasoline and diesel tax rates in July 2022 but have repeatedly extended the cuts since.Ford estimates the succession of moves will help the average Ontario household save $380 over the three years since the cuts were first introduced.