Advocacy Update: July 2024

Clarifying the New GST/HST Exemption for Psychotherapy and Counselling Therapy Services

On June 27, we were pleased to announce that the GST/HST exemption from counselling and psychotherapy services went into effect as of June 20, 2024, after having received royal assent.

As of June 20, 2024, certain psychotherapists and counselling therapists are no longer required to collect the GST/HST on their services. The Canada Revenue Agency wants to ensure that all providers of these types of services have the information they need to determine their tax situation and take any next steps, such as closing their GST/HST account. The CRA released a statement on July 15 which provides further clarity.

Please keep in mind that the exemption applies only to psychotherapy services. If you are providing other services (e.g., coaching, workshops, etc.) that you charge HST on, you should continue to charge HST on those services.

We would again like to thank all those who worked diligently over many years to make this happen, including those on the Tax-Free Therapy campaign, our partners at the Partnership of Registered Psychotherapy Associations (PRPA) and the Canadian Counselling and Psychotherapy Association (CCPA), and our very own OSRP Advocacy Committee.

Advocacy Update: June 2024

We are pleased to announce that the GST/HST exemption from counselling and psychotherapy services has gone into effect as of June 20, 2024, after having received royal assent.

Now for the big question on everyone’s mind: When do we stop charging HST?

While some of the national associations have suggested that their members can stop charging HST immediately, we would like to err on the side of caution and suggest that OSRP members wait for the Canada Revenue Agency (CRA) to publish guidelines. Since we are a provincial association, what applies to us may be different than what the national associations have suggested or advised.

At this time, the CRPO is recommending that your individual accountant or a CRA representative would be in the best position to provide guidance that is specific to your situation.

Please keep in mind that the exemption applies only to psychotherapy services. If you are providing other services (eg. coaching, workshops, etc.) that you charge HST on, you should continue to charge HST on those services.

Once again, this is exciting news that has been a long time coming. 

We would like to thank all those who worked diligently over many years to make this happen, including those on the Tax-Free Therapy campaign, our partners at the Partnership of Registered Psychotherapy Associations (PRPA) and the Canadian Counselling and Psychotherapy Association (CCPA), and our very own Advocacy Committee. 

Keep an eye on the CRA website in the coming days. 

Advocacy Update: April 2024

The Canada Revenue Agency recently published Proposed Amendment - Exemption for Counselling Therapy Services.

This publication explains the GST/HST implications of adding counselling therapy services to the list of services that are GST/HST exempt. Any commentary in this publication should not be taken as a statement by the Canada Revenue Agency that the proposed amendment will become law in its current form.

1. When will the amendment come into effect?

The amendment will come into effect when Bill C-59 receives royal assent and becomes law. There is no timeline for when that will occur.

2. Will all supplies of counselling therapy services be GST/HST exempt under the amendment?

The amendment will only exempt from the GST/HST a counselling therapy service where the service is rendered to an individual by a practitioner of the service.

The definition of practitioner found in section 1 of Part II of Schedule V would be replaced with the following (for additions, note the bolded text):

practitioner, in respect of a supply of optometric, chiropractic, physiotherapy, chiropodic, podiatric, osteopathic, audiological, speech-language pathology, occupational therapy, psychological, psychotherapy, counselling therapy, midwifery, dietetic, acupuncture or naturopathic services, means a person who

a. practises the profession of optometry, chiropractic, physiotherapy, chiropody, podiatry, osteopathy, audiology, speech-language pathology, occupational therapy, psychology, psychotherapy, counselling therapy, midwifery, dietetics, acupuncture or naturopathy as a naturopathic doctor, as the case may be,

b. where the person is required to be licensed or otherwise certified to practise the profession in the province in which the service is supplied, is so licensed or certified . . . 

CRA released the information on the proposed amendment before the tax exemption law comes into effect because the CRA is receiving ongoing pressure from practitioners and the public to see this change take effect, and the CRA has made similar changes for the services of naturopathic doctors.

However, there are inaccuracies in the information provided. Some of them include:

• Did not acknowledge that "Registered Psychotherapist" is a regulated title in the provinces of Ontario and Quebec.
• Focus primarily through the publication on counselling therapy and not counselling therapy and psychotherapy services.
• Unclear use of terms like “service rendered to an individual,”
• Inclusion of considerations for provincial associations only, not national associations

For more information, please check the Government of Canada website.

HST VICTORY! The Beginning of the End of a Long Campaign

On Tuesday November 21, the federal government tabled its fall economic statement. In the statement, the government proposed to exempt professional services rendered by psychotherapists and counselling therapists from GST/HST. Legislation will now be introduced and (very likely) passed in the house in the coming months.

This is a huge win after a long and arduous campaign in which the OSRP partnered with and brought new life to the efforts of organizations such as the CCPA and PRPA with our own petition (Stop Taxing My Therapy) and the resulting December 2021 first reading of Bill-C-218. This, along with a parliamentary petition signed by over 14,200 Canadians and a massive letter-writing campaign, led to more debate in Parliament, a second Bill (C-323) which made it to a second reading where it was unanimously voted to the next step. The Tax Free Therapy Coalition built and populated a robust campaign website at www.TaxFreeTherapy.ca which includes media articles and celebrity endorsements. We were able to secure meetings with elected representatives, the majority of whom were surprised to hear about this unfair tax. 

Each and every member of the OSRP should be enormously proud of what has been accomplished by psychotherapists working together with the full support of the OSRP Board. None of this would have happened without you. It is amazing what can be accomplished when we work together. Congratulations!   

You deserve our thanks for your letter-writing, your petition-signing, and your sharing of materials and calls to action. Particular thanks to Andrea D'Onofrio who founded the HST Task Force, Stephanie Woo Dearden, and other members of the HST Task Force and Advocacy Committee past and present who contributed their time, energy, contacts and passion to achieve this important milestone for our profession. At last, we will achieve tax equity with other professionals providing psychotherapy. 

At present, we can't stop charging or remitting HST on our psychotherapy services until the legislation is tabled in a government bill. It is possible that this legislation will include a start date, we just don't know yet, but with our partners at CCPA and PRPA we will continue to press for enactment as soon as possible.

You will be updated as more information unfolds. 

Gratefully,

The Advocacy Committee

PS: If you haven't already signed up to attend this Friday's AGM from 1pm-3pm on Zoom, please do so here.

We want to celebrate together and plan for a victory party   as promised at last year’s AGM

FALL UPDATE

GST/HST BILL 2nd reading

On September 25, MP Stephen Ellis presented the last part of his second reading of his GST/HST Bill C-323. This will go to a vote tomorrow, and then to the HoC Standing Committee on Finance for further debate.

We appreciate all the efforts of OSRP members to write to their MPs to urge them to vote in favour of this Bill, and we are going to ask you to do so again.

Click here for the template of a letter to send to your MP, or you could email or tag your MP on social media, asking them to vote YES to Bill C-323 tomorrow, and support Tax Free Therapy. 

At an August 22 media conference which generated an estimated 1.2 million impressions, RP Lindsey Thomson spoke passionately about the deadly consequences of limiting access to therapy. Thomson’s call to the Federal government to end this tax can be seen HERE.  The Tax Free Therapy Coalition’s Countdown clock to the 2025 (likely) election and need to change can be found HERE.

More than a million Canadians saw, heard or read about this issue following the media conference. The majority of coverage came from CTV television news outlets across Canada, including Vancouver, Winnipeg, Atlantic and Edmonton local news broadcasts (see image below). Coverage also came from online sources, blogs and radio. Known as “earned media” (as opposed to expensive paid advertisements), these impressions are highly valued and indicate how much interest there is nationally in this issue.

These media hits could not be better timed as Canada’s leaders headed to pre-Parliament cabinet and caucus meetings, readying themselves for the Sept 22nd opening of this Parliament. We hope September's house business will include Dr. Stephen Ellis’ Bill C-323: An Act to amend the Excise Tax Act (mental health services) completing its second reading in the House. As previously reported here, the NDP has pledged to support it.

Thank you to all advocates who have written, called, and visited their MPs to push for this important measure. Now is a great time to revisit this with your MP – please find an updated letter template HERE. Meanwhile, the Tax-Free Therapy Coalition continues to meet with important policy-makers and advocate for the end of this unfair tax.

Should you wish to join the Advocacy Committee, which meets next via Zoom on September 29th, please do not hesitate to contact us at: advocacy@psychotherapyontario.org

Rachel Fulford & Dr. Natasha Tuletta-Bowman, Co-Vice Chairs, OSRP Board of Directors, Co-Chairs, Advocacy Committee of the OSRP

UPDATE #1:

Unfortunately, all 14, 244 signatories to the HoC petition have by now received a disappointing message from the Finance Minister.
This message is not new and has been received by her constituents and other letter-writers for years. This does NOT mean that our cause is hopeless.

• Many meetings are happening with important decision makers who can affect the status quo, empowered by the support for GST/HST exemption.
• The National Coalition is working on a response to the response.
• There will also be a second reading of MP Ellis’ bill (TBA) and by the way, this response doesn’t kill MP Mathyssen’s bill from future readings either.
• We will update you further when we have more outcomes to share.

UPDATE #2: Your letters to MPs are making a difference.

As reported HERE in the March 28th Central, and ongoing since then, several MPs and their staff have advised Advocacy Committee members that the volume of letters to MPs has been noticed.
 
Important actions and meetings are arising from your HST activism, and we will keep you informed of all new developments.

The Ontario Society of Registered Psychotherapists (OSRP) continues to call on the Federal Government to Take Action now that three parties have expressed support.

Click here to read the Finance Committee's recommendation, echoing bills from two opposition parties, and our press release!

The newly-merged Advocacy Committee + HST Task Force met on Friday April 14, and brought renewed energy to attending meetings with politicians and decision-makers, now that we are all fully briefed on this important issue.

Proposed Next Steps for the Advocacy Committee

• Encourage all members and supporters to write to their MPs AGAIN, cc-ing the Minister of Finance chrystia.freeland@parl.gc.ca to call on government to take action now that three parties, including the Finance Committee, have advocated for GST/HST exemption for all mental health professionals
• Continue coordinating with partners (CCPA, PRPA, Impact etc.) on all Advocacy on behalf of our members, to amplify our voices

CURRENT ADVOCACY INITIATIVES:

Actions Taken

• On March 6, MP Lindsay Mathyssen read our petition in Parliament, including a reference to her Private Member's Bill along with a request that the government introduce its own bill to end this tax ASAP.
  Scroll to =>   15:40:13 in the following video https://parlvu.parl.gc.ca/Harmony/en/PowerBrowser/PowerBrowserV2/20230306/-1/38635?Language=English&Stream=Video
• On the Friday, February 10 deadline, the OSRP wrote and emailed Pre-Budget Submissions to both Federal and Provincial (Ontario) Ministries of Finances, advocating strongly for GST/HST Tax Exemption, using language from the www.TaxFreeTherapy.ca website.
• House of Commons Petition received 14,244 verified signatures before it closed Friday January 13. This is a remarkably high number given that it was only online 4 months - the maximum time allotted for HoC petitions. Thank you to all members who signed and shared!
• CLICK HERE FOR A PRINTABLE LETTER OF THANKS FROM THE NATIONAL COALITION
• NB: the online tool for emailing your MP will stay on www.taxfreetherapy.ca until this tax is gone.
  ○  1,318 letters were generated and sent to the writer’s MP, cc’d to Finance Minister Freeland, as of January 2023
• All endorsements, video and otherwise, from NDP Leader Jagmeet Singh, MP Carol Hughes, Broadcaster Alan Cross, Madison Violet etc. can be found at Tax Free Therapy (under MEDIA)
• On February 9, CCPA Board President-Elect, Carrie Foster, Montreal-based Psychotherapist, testified effectively for GST/HST exemption to the House of Commons Standing Committee on Health. Her 5-minute intro can be VIEWED by sliding the bar to the timecode 11:10:27; she speaks until 11:15:15
• An Advocacy Committee member kindly edited another short clip from this session - Foster and her CCPA Colleague answering questions from MPs about the GST/HST issue
• On February 13, MP Stephen Ellis (PC rep for rural Nova Scotia riding) demanded HST exemption for RPs in the House of Commons. Click HERE for transcript of his question in the House in which he asked: “Counsellors and psychotherapists are required to charge GST on their services. We know that, sadly, many Canadians do not have private coverage for those services, but to add insult to injury, to pour salt in a wound, what we are now requiring is for Canadians to pay GST on those services. How does that make any sense?

2. PRPA Government Engagement Working Group (GEWG) met April 6th

• Members discussed outcomes February 28 presentation to CLHIA - CLHIA - Home (National association of insurance companies) to advocate for RPs being included in benefits plans
• Upcoming Rates survey to all RPs drafted by Andrea D’Onofrio, Founding Advocacy Committee Member
• QA Case-Based Assessment - looped in Chair of PRPA CRPO Committee, re: OSRP members’ concerns. See here for more: CRPO&AdvocacyToAll OSRP UPDATE Mar 2023

• Prepared research paper re: government incentives  "incentives for health professionals" for other Health Professions to work regionally, or with other underserved communities, so we can advocate the Ontario Government for such incentives for RPs
• OSRP to be prepared to provide full consultation and review rights on Queen’s Park media release and all media conference details, and involvement in Mental Health Week (May 1-5) and Mental Health Month (October) activities at Queen’s Park
• Impact (Lobbying Firm engaged by PRPA) will schedule a meeting with new ONDP leader Marit Stiles’ office, to discuss the important role of RPs in Ontario, and to address our concerns about previous ONDP Leader Andrea Horvath’s platform which stated “Ontarians should pay for their mental health services with an OHIP card, not a credit card.”

Thank you!

–Advocacy Co-Chairs, Dr. Natasha Tuletta-Bowman and Rachel Fulford (both also Co-Vice-Chairs of OSRP Board)

Objective: The Advocacy Committee advocates on issues that benefit and impact Registered Psychotherapists as a whole.

Advocacy Committee Members (in alphabetical order by first name):

Andrea D’Onofrio, Founding Member
Carmen Kattan
Cindy Elkerton, Board Member, Wellness Co-Chair
Daniel Farb
Hammam Farah, Board Member, PRPA Voting Rep
Dr. Jess Erb
Lucy Nusink
Mark Murphy
Roberta Currie
Stephen Ademoluti
Stephanie Woo Dearden (GST/HST National Coalition Member)

Want to join the committee? Here’s a link to fill out a form! You must be a member of OSRP.