BUDGET OVERVIEW
T he coalition has made it s multi-billion-euro pitch to voters ahead of the general elec tion, with an € 8.3bn Budget comprising €1.4bn in tax cut s and € 6.9bn in new spending.
Finance Minister Jack Chambers said the changes to personal income taxes would suppor t low and middle-income earners.
announced in the Budget should leave most people payment s to deal with the cost of living.
The Government is increasing the main tax credit s – the personal, employee and earned income credit s – by €125 each.
T his means the maximum employee tax credit for 2025 will be € 2,000 for a single person to € 4 4,000.
And Mr Chambers reduced the Universal Social Charge (USC) middle rate from 4% to 3%.
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PENSIONS & SOCIAL WELFARE
• We e k l y s o c ia l p
b y €12
• “Ba by boost” pay ment, parent s of new bor n given month of the ba by’s life
• € 400 lump sum pay ment for Wor king Family Pay ment re cipient s
• and De cember of € 280 per child
•
• C arers will re ceive an increased C arer ’ s Suppor t Grant of € 2000
•
COST OF LIVING PACK AGE
• € 2.2 billion pa ckage overall
• Reduced 9% VAT on ele c tricit y and gas ex tended until A pril 30th, 2025
• € 250 wor th of energ y credit s split over t wo pay ment s, one this year, other nex t year
TA X ATION
• Income tax pa ckage wor th €1.6 billion
• USC cut for entr y level to 3 %, rate increased by €1,622 to € 27,382
• Inheritance tax: C apital Acquisition Tax thresholds to increase from € 335,000 to € 400,000
• Proper ties wor th over €1 5 million to pay 6 % stamp dut y
• Lower rate of income tax band to rise from € 42,000 to € 4 4,000
HOUSING
• Dpt of Housing given € 7 8 bn, including € 2bn towards 10,000 new-build social homes in 2025
• € 680 m alloc ated to schemes w hich would
• €1 6 bn continue to suppor t 66,000 social housing tenancies alongside an additional 7,400 social homes nex t year, as well as 38,000 social housing leases alread y in pla ce.
• 10,000 new households under the Housing
A ssistance Pay ment and Rental Accommodation
S chemes in 2025.
L ANDLORDS, REN TERS AND MOR TGAGE S
• Rent tax credit to rise by € 250 to €1,000 and € 2,000 for a jointly assessed couple for 2025
• E x tension of the Help to Bu y scheme to 2029
• E x tension of mor tgage interest relief to 2025
• Landlord let ting ex tension scheme ex tended
CHILDCARE & EDUCATION
• Free schoolbook s up to Leaving C er t
• Student and apprentice fees to be reduced by €1,000 in this ac ademic year
• Hot school meal s programme increases to all primar y school s
• Junior C er t and Leaving C er t fees waived
• resulting in a reduc tion in f ull-time child c are cost s by €1,100.
CLIMATE
• € 3 billion pa ckage to be set aside for climate transition bet ween 2026 and 2030
• VAT on heat pump installation to be reduced to 9 %
• C ar bon tax rate per tonne of c ar bon dioxide emit ted for petrol and diesel will go up € 7 50, from € 56 to € 63 50, from Oc tober 9th
• homes for 2025
PUBLIC TR ANSP OR T
• €1.25bn of additional f unding for the Land Development Agenc y
• € 3bn from sale of State’s AIB shares for infrastr uc ture spending
• € 750m for f ur ther development of ele c tricit y grid infrastr uc ture
HE ALTH
• Additional € 2.7 billion to be given to health se c tor over t wo years
• 495 new beds to be introduced in hospital and communit y ser vices
• E xemption from income, c apital gains and c apital a cquisitions taxes on pay ment s to women impa c ted by C er vic al Che ck screening failures
• C ontinued suppor t for women ’ s health measures, including increased a ccess to IVF and Hor mone Repla cement T herapy free of charge
AND INFR A S TRUC T URE
• € 3.9 billion pa ckage
• Free public transpor t expanded for all children under the age of 9
• € 99 million for development of the Por t of C or k .
• Free public transpor t for those aged between 5 and 9
• over 70 to bring a friend on public transpor t
AGRICULTURE
• O ver € 2 billion to the depar tment of agriculture nex t year.
• €13 million for new tillage scheme
• €10 million for animal health measures
• € 8 million to enhance pay ment rates of national beef welfare scheme
BUSINESS
• From Jan 1, the national minimum wage will increase by € 0.80 per hour to €13.50 per hour.
• €1,000 to €1,500 for an employer to provide limited
• Raising VAT registration thresholds that apply for the supply of goods and ser vices, to € 85,000 and € 42,500 respe c tively
• A n ex tension of the Bank Lev y for a f ur ther year, with a target yield of € 200m.
• E x tension to 2026 of the Employ ment Investment Incentive, the Star t-Up Relief for Entrepreneurs and the Star t-Up C apital Incentive.
• CGT Retirement Relief retaining the increased upper age limit and intro of a claw ba ck period of 12 yrs for relief availa ble for disposal s over €10m,
• the R&D tax credit, from € 50,000 to € 75,000
JUSTICE & DEFENCE
• € 3.9 billion alloc ated to Justice se c tor including provision for re cr uitment of f ur ther 1,000 gardaí
• Inter national prote c tion processing s ystem to be
• personnel in 2025
ALCOHOL, CIGARE T TES, VAPING
• €1 increase in excise dut y on pa cket of 20, bringing cost to €18 05 from midnight
• Tax to be introduced from mid-2025 of 50 cent per ml of eliquid, bringing t y pic al price of disposa ble device to € 9.23
•
UNIVERSAL SOCIAL CHARGE
0% on total earnings <€13,000 per annum
0.5% on €0 to €12,012 per annum
2% on €12,013 to €27,382 per annum
0% on total earnings <€13,000 per annum
0.5% on €0 to €12,012 per annum
2% on €12,013 to €25,760 per annum
3% on €27,382 to €70,044 4% on €25.760 to €70,044
8% on €70,045 to €100,000 8% on €70,045 to €100,000