New laws and rules coming to Ontario next month

We're nearly halfway through 2026, which means there's still plenty of time for new laws, rules, and regulations to come into effect in the months ahead, including this July.

Between an auto insurance overhaul and sweeping bail and sentencing reforms, some notable changes are coming up next month that you should keep on your radar.

These are the new laws and rules coming to Ontario in July 2026.

Auto insurance benefits

Starting July 1, some auto insurance benefits that are currently mandatory will become optional for drivers when renewing or choosing their plans.

Although there are a dozen auto insurance benefits that, at the time of this article's publication, are mandatory, nine of them, including non-earner benefits, housekeeping benefits, visitor expense benefits, caregiver benefits, income replacement benefits, damage to personal items, as well as lost educational, death, and funeral expenses, will become optional next month.

Despite this, medical, rehabilitation, and attendant care benefits will remain mandatory when choosing an auto insurance policy after July 1.

This auto insurance overhaul was first introduced in the 2024 Ontario Budget, and is described by the Ford government as a move to "empower Ontario's drivers by enabling more consumer choice."

According to Rates.ca, the idea behind the change is that if you already have access to certain types of coverage, such as disability benefits, you "shouldn't have to pay for similar protection twice."

If your policy is set to renew on or after July 1, you plan will automatically renew with the same benefits you have, unless you specifically opt out in writing. If you're purchasing a policy on or after July 1, just the mandatory benefits will be included, and insurance providers will be responsible for offering optional coverages.

However, Rates.ca insurance expert Daniel Ivans warns that while the reforms in insurance do technically give consumers more choice, "the savings from opting out of certain coverages are often very small compared to the significant financial risks you take on if something goes wrong."

Changes to federal benefits

Starting in July, the Canada Groceries and Essentials Benefit (CGEB) will officially be replacing the GST/HST credit. Payments under this new name will be issued starting on July 3, 2026.

Despite its new name, the eligibility, payment calculation, and structure of the benefit will be the same as the previous GST/HST credit.

The benefit will continue to provide tax-free quarterly payments to individuals as well as families with low and modest incomes "to help manage the rising costs of everyday essentials," according to the federal government.

Also starting in July, there will be a 25 per cent increase to the benefit amount, which will remain in place for five years from 2026 to 2031.

Canada's new bail and sentencing reforms

Earlier this week, the Department of Justice Canada announced that over 80 targeted changes to the Criminal Code on bail and sentencing are now law.

According to the federal government, the reforms make bail laws stricter and sentencing laws tougher for repeat and violent offenders, and invest in long-term prevention.

The stricter bail laws will crack down on violent and organized crime, home invasion, human trafficking, and car theft, by making bail harder to get for individuals accused of repeat and violent offending by creating new "reverse onus" rules in certain cases, meaning the accused must now show why they should be released.

Tougher sentencing laws will also mean that those convicted of serious crimes may spend more time in prison, as a result of updated regulations that require consecutive sentences for violent auto theft, break and enter, extortion, and arson.

The laws will also strengthen fine enforcement and restore driving bans for manslaughter and criminal negligence causing bodily harm or death.

Provinces and territories will be responsible for administering and providing resources for parts of this system, including policing, bail courts, bail supervision programs, victim services, and jails.

The new changes on bail and sentencing will come into effect on July 15, 2026, while some changes to the Youth Criminal Act will come into force later.