Michael Brooks: Web profit is simple: important long-term financial savings for Ontario and improved take care of Ontario seniors
Critiques and proposals are unbiased and merchandise are independently chosen. Postmedia might earn an affiliate fee from purchases made by way of hyperlinks on this web page.
Article content material
In Ontario, a coalition of actual property, well being and senior care associations are advocating for the enhancement of the province’s Seniors’ Care at Dwelling Tax Credit score, recognizing the worth and societal advantages of giving seniors their very own dwelling selections.
Article content material
Article content material
Not solely does this proposed tax credit score make it simpler for seniors to age in place or transfer into extra appropriate housing, it can additionally assist handle the housing disaster and save much-needed healthcare {dollars}, whereas making certain that Ontario’s 750,000 seniors can stay comfortably as they age.
Commercial 2
Article content material
Let’s take a look at how nicely this has labored in our neighbouring province, Quebec.
Since its introduction greater than 20 years in the past, Quebec’s Tax Credit score for Dwelling-Help Providers for Seniors has confirmed extremely efficient in serving to seniors stay of their communities, easing the pressure on long-term care (LTC) beds, decreasing hospital admissions, and expediting the return residence from hospitals when a senior affected person is able to be discharged. Enhanced by politicians of each stripe over time, Quebec’s program has decreased the waitlist for publicly funded LTC beds down to three,700, lower than one sixth of Ontario’s waitlist (adjusted for inhabitants).
Article content material
High Tales
Article content material
Commercial 3
Article content material
Primarily based on the latest accessible knowledge from 2020, implementing a tax credit score program in Ontario just like Quebec’s would initially value the federal government $489 million in foregone tax income. Nonetheless, this may be greater than offset by a minimum of $288 million in annual financial savings from decreased hospital and LTC admissions, financial savings from delayed healthcare entry, and decrease healthcare demand.
The online profit is simple: important long-term financial savings for Ontario and improved take care of Ontario seniors.
Supporting seniors shifting into properties that match their present wants not solely improves their high quality of life but in addition creates optimistic outcomes for the broader group. Many seniors stay in properties that not match their wants, usually as a result of monetary and logistical boundaries of shifting. In reality, 29 per cent of senior singles and {couples} in Canada stay in properties with three or extra bedrooms. Whereas choices for downsizing — equivalent to senior residences, naturally occurring retirement communities, and licensed retirement properties — do exist, the provision is proscribed, and demand is anticipated to surge within the coming many years. Building of latest housing has slowed, pushed by rising labour and materials prices, and excessive native charges, fees and taxes.
Commercial 4
Article content material
Governments can play a key position in making downsizing extra financially viable by providing focused incentives equivalent to a tax credit score, which make it simpler for seniors to maneuver with out being burdened by prices. Prices might embrace shifting bills or a share of hire in purpose-built seniors’ housing.
This may additionally encourage the non-public sector to construct extra purpose-built seniors’ housing for these seniors wishing to downsize. This, in flip, would have a optimistic cascading affect on our housing provide by liberating up single household properties, thereby additional assuaging stress on Ontario’s present housing system, whereas additionally presenting alternatives for light densification by way of the potential conversion of those properties into multiplex housing.
Advisable from Editorial
Michael Brooks is the CEO of Realpac (Actual Property Affiliation of Canada), a 54-year-old nationwide affiliation of institutional actual property house owners of all asset lessons, having roughly $1 trillion of property beneath administration.
Bookmark our web site and help our journalism: Don’t miss the enterprise information you should know — add financialpost.com to your bookmarks and join our newsletters right here.
Article content material
