New Rules on Political Donations in Ontario: What This Means for You

May 27

The amount you can donate to your favourite Ontario political party or candidate has recently increased dramatically.

In April, the Ontario government made changes to the province’s rules on political donations. Bill 254, Protecting Ontario Elections Act, raises the individual contribution limit from $1,650 to $3,300 per year. However it also modifies, and effectively reduces, the amount that third-party interest groups can spend on electoral campaigns from $600,000 over six months to $637,200 over a year-long period.

For political contributions made in 2021, you are eligible for the following refundable tax credits:

75% on the first $427 that you donate.
0% on the portion between $427 and $1,423; and
33.33% on the portion between $1,423 and $3,328.

Donations must be made to a registered Ontario political party, constituency association, or candidate in a provincial election. At Solstice Public Affairs, we are seeing increasing drives from all political parties as they look to build their war chest ahead of the next provincial election in June 2022.

Corporations continue to be prohibited from making political donations directly to candidates, following a change in legislation in 2017. However, both corporations and individuals can make political contributions to third-party advertising and political action groups. There are no limits on donations to such groups and no tax rebate is offered for these types of donations. The new law also further restricts third-party activities aiming to circumvent the new spending limits.

With the next election only one year away, we encourage you to participate in the Ontario electoral process by supporting the parties or candidates of your choice. As always, you want to build a positive relationship with key elected members and political parties.

The Countdown is on for the Next Ontario General Election

The next provincial election in Ontario will be held in the spring of 2022. The writ is scheduled to drop on May 4, 2022, with voters heading to the polls on June 2, 2022. This gives you 13 months to seek support from MPPs seeking re-election for your various projects and to prepare for potential changes at Queen’s Park. Recent polls predict a tight race between the Liberal Party of Ontario (35%) and the Progressive Conservative Party of Ontario (34%), with the Ontario NDP coming in third (23%). Out team at Solstice Public Affairs will make sure that you stay informed in the lead-up to the next general election in Ontario.

Less Than 18 Months to Go Until Municipal Elections in Ontario

The Ontario municipal elections are scheduled for October 24, 2022. Every municipal elected position will be filled by voters. This includes mayors, councillors, and school board trustees. Nominations for municipal and school board elections must be filed between May 2 and August 19, 2022. All municipalities will use the first-past-the-post system, following recent changes in election laws.