Ontario is set to implement a series of major legislative and regulatory changes in August 2025, poised to impact residents, businesses, and the economy. These updates—ranging from alcohol tax reductions to stronger tenant protections—are part of the 2025 Ontario Budget, A Plan to Protect Ontario. The aim: strengthen local industries, ease cost-of-living pressures, and support vulnerable groups amid economic uncertainties like potential U.S. tariffs.
Whether you’re a craft beer enthusiast, distillery owner, Toronto renter, or just an informed Ontarian, this guide breaks down what’s changing—and why it matters.
Alcohol Tax Cuts: Supporting Local Producers and Consumers
Starting August 1, 2025, Ontario will significantly reduce taxes on locally produced alcoholic beverages to boost competitiveness, lower prices, and grow the $13-billion alcohol industry that employs over 90,000 Ontarians.
1. Spirits Tax Slashed for Ontario Distilleries
- Old Tax: 61.5%
- New Tax: 30.75%
- Applies to: Spirits made in Ontario and sold at distillery retail stores
- Impact:
- A $50 bottle of local gin could see its tax drop from $30.75 to $15.38.
- Consumers may save 10–20% depending on how distilleries price their products.
- Small and medium distilleries stand to benefit the most, potentially expanding operations and tourism.
- Impact:
Finance Minister Peter Bethlenfalvy called the move “a big boost” for Ontario’s world-class spirits sector.
2. Beer Tax Relief for Microbrewers
Effective August 1, 2025, over 300 microbreweries will benefit from reduced tax rates:
| Beer Type | Old Tax | New Tax |
|---|---|---|
| Draft | 35.96¢/L | 17.98¢/L |
| Non-Draft | 39.75¢/L | 19.88¢/L |
- Consumer Benefit: ~7¢ savings per 355ml can (or ~42¢ for a six-pack)
- Business Impact: Microbreweries, often operating on tight margins, gain room to reinvest in growth, aligning with Ontario’s small business agenda.
3. LCBO Markup Cuts for Cider & Ready-to-Drink (RTD) Beverages
- Cider Markup: Reduced from 60.6% → 32%
- A $10 bottle of cider may drop by $2–$3.
- Cider Markup: Reduced from 60.6% → 32%
- RTDs (≤7.1% ABV):
- Wine-Based: 60.6–64.6% → 48%
- Spirit-Based: 68.5–96.7% → 48%
- RTDs (≤7.1% ABV):
- Market Impact: While LCBO expects a $150–$200 million annual revenue dip, the move is expected to increase sales and support local producers.
Tenant Protections: Toronto’s Rental Renovation Licence Bylaw
Effective July 31, 2025, Toronto will enact a groundbreaking bylaw to combat “renovictions,” where landlords evict tenants under the pretext of renovations.
Key Rules for Landlords:
- License Requirement: Must obtain a renovation license before issuing an N13 eviction notice.
- 120 Days’ Notice required before vacating.
- Right to Return: Tenants can return post-renovation at the same rent.
- Compensation: If they choose not to return, landlords must provide temporary housing or equivalent financial support.
Penalties for Non-Compliance:
- Late license: $1,000
- Major violations: Up to $100,000
With Toronto’s vacancy rate under 2% and rents soaring past $2,400 for a one-bedroom, this bylaw aims to:
- Protect vulnerable renters, especially low-income or long-term tenants.
- Deter bad-faith evictions.
- Serve as a model for other cities, following Hamilton’s lead in 2024.
Other Noteworthy Policy Changes in 2025
1. Digital Platform Workers’ Rights Act (Effective July 1, 2025)
- Applies to gig workers (Uber, DoorDash, etc.)
- Guarantees minimum wage during active work hours and regular pay schedules.
2. Ontario Fertility Treatment Tax Credit
- 25% refundable credit on up to $20,000 in eligible fertility expenses (max $5,000 refund).
3. Federal Pre-Budget Consultations (Open until August 28, 2025)
- Residents and businesses can provide feedback for the 2026 federal budget—potentially influencing future Ontario funding and programs.
Looking Ahead
As August 2025 approaches, Ontarians can expect:
- Cheaper local alcohol across categories
- Stronger protections for Toronto tenants
- Continued support for small businesses and gig workers
These initiatives reflect Ontario’s efforts to modernize key sectors, balance economic priorities, and ensure a fairer future for residents.
Stay informed: Visit Ontario.ca or follow trusted news outlets for updates.
