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News release
June 10, 2024

Ontario Medical Association disappointed by changes to the capital gains tax and warns of significant impact on patient care

TORONTO, June 10, 2024 — Today, the deputy prime minister and minister of finance announced, among other tax measures, that the inclusion rate on the first dollar of capital gains realized in a medical professional corporation will increase from 50 per cent to 66.67 per cent.

The impact of the capital gains increase is particularly alarming for physicians and their medical professional corporations, in which every dollar of realized capital gains will be subject to this higher inclusion rate. This increase will undoubtedly add additional undue pressure and financial strain to physicians, threatening the well-being of our health-care system. 

In response to today’s announcement, the Ontario Medical Association offered the following statement: 

“The OMA and its members are deeply disappointed with today’s announcement by the deputy prime minister and minister of finance. The changes to the capital gains tax will have a drastic effect on Ontario’s already failing health-care system. Implementing this egregious tax measure will only serve to exacerbate the problem and make it even less desirable for Ontarians to choose practicing medicine as a career choice. Physicians do not qualify for employee-based benefits such as pensions or sick leave and must invest their own money to open their private practice, hire staff, purchase equipment and medical supplies and the technology they need to provide care for patients. 

“Physicians are already subject to substantial challenges in funding due to significant inflationary pressures and this additional economic hardship puts further pressures on the viability and sustainability of a fragile system. This disincentive will only serve to force existing physicians out of practice and dissuade new grads from practicing in Canada...putting the health of Ontarians at further risk. Ontario, like every part of the country are experiencing a physician human resources crisis and this proposal only contributes to this serious situation. The federal government should reconsider this move and make the health and wellbeing of Canadians its top priority.” 

About the OMA 

The Ontario Medical Association represents Ontario’s 43,000-plus physicians, medical students and retired physicians, advocating for and supporting doctors while strengthening the leadership role of doctors in caring for patients. Our vision is to be the trusted voice in transforming Ontario’s health-care system. 

For more information, please contact:
Emily English
OMA media relations