Bill 154 2004
An Act to amend the
Income Tax Act
with respect to the tax credit
for medical expenses
The health and well-being of the residents of Ontario are served by a variety of medical professionals who deliver quality care and provide expert advice and direction to them.
In 2004, the Government of Ontario amended the regulations made under the Health Insurance Act to make certain health care services provided by chiropractors, optometrists and physiotherapists no longer insured services under that Act.
Chiropractors, optometrists and physiotherapists are important health care providers because, among many services, they diagnose and treat illness and disease in its early stages. This preventative care not only increases the health of Ontarians, but also prevents later admission to hospitals or visits to specialists to correct medical concerns.
The amendments to the regulations made under the Health Insurance Act have the effect of requiring Ontario taxpayers to pay more of the cost of health care services that they receive from chiropractors, optometrists and physiotherapists. The Government of Ontario should ease the increased financial burden on taxpayers by increasing the amount of an income tax credit that taxpayers are entitled to claim for expenses that they incur for receiving health care services from these and other medical professionals.
Therefore, Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:
1. Paragraph 17 of subsection 4 (3.1) of the Income Tax Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 50 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:
17. A medical expense credit for the year.
2. Subsection 4.0.1 (23) of the Act, as enacted by the Statutes of Ontario, 2000, chapter 42, section 51 and amended by 2004, chapter 16, section 3, is repealed and the following substituted:
Medical expense credit
(23) The amount of an individual's medical expense credit for a taxation year ending after December 31, 2004 is the amount calculated using the formula,
(A × B) - (A/C × D × E)
"A" is the lowest tax rate for the year,
"B" is the total of the individual's medical expenses that are included in calculating the amount of his or her medical expense credit for the year under subsection 118.2 (1) of the Federal Act,
"C" is the lowest percentage referred to in subsection 117 (2) of the Federal Act that applies in determining the amount of tax payable under Part I of that Act for the year,
"D" is the percentage used in determining the amount of "C" for the year in the formula in subsection 118.2 (1) of the Federal Act, and
"E" is the total of all amounts each of which is the amount, if any, by which the income for the year of a person, other than the individual and the individual's spouse or common-law partner, in respect of whom an amount is included in computing the individual's medical expense credit for the year, exceeds $7,231.
3. This Act comes into force on the day it receives Royal Assent.
4. The short title of this Act is the Income Tax Amendment Act (Medical Expense Tax Credit), 2004.
The Bill amends the Income Tax Act to remove the present minimum amount of medical expenses for which a taxpayer is entitled to claim a non-refundable income tax credit under the Act.