Here are the main points of today’s budget:
- Universal Social Charge will not be applicable for those earning below €12,012. Once you exceed €12,012 the rate will be 1.5%, €12,013 to €17,576 @ 3.5% & €17,577 to €70,044 @ 7%
- There is now two new top rates of USC for high income earners, with 8% over €70,000 and for self employed where the income is over €100,000 the rate of USC will be 11%
- Extension of the exemption from the 7% rate of USC for medical card holders whose aggregate income does not exceed €60,000, who will now pay a maximum rate of 3.5% USC.
Individuals aged 70 years and over whose aggregate income is €60,000 or less will pay a maximum rate of 3.5% USC - Top rate of income tax reduced by 1%, to 40%
- Standard cut off points have increased by €1k from €32,800 to €33,800 for a single person and €41,800 to €42,800 for a married couple
- Cigarettes have gone up by €0.40c. For a pack of 20 it is now €10.
- Alcohol hasn’t increased
- Petrol and Diesel remain the same
- Motor Tax and Vehicle Registration Tax has not changed
- Corporate Tax rate will not move from 12.5%
- VAT rate of 9% to remain in the tourism industry
- 0.6 % pension levy will continue to the end of the 2014 with the remainder of the pension levy ceasing at the end of 2015
- DIRT tax refunded to first-time buyers who save for their deposit
- Income tax relief at 20 per cent on water charges up to €500 per year per household
- Child benefit up by €5 per child
- €2.2billion capital investment in social housing over three years
- An extra €10m to be put into the problem of homelessness
- €1.6b to go into 300,000 places in Pathways to Work scheme, 6,000 positions in JobsPlus
- €19.4b to Dept of Social Protection, no cuts to social welfare schemes for first time since 2009
- Living Alone allowance up by €9 a week
- 25 per cent bonus to social welfare recipients this Christmas
- Water subsidy of €100 per annum for all recipients of free fuel allowance scheme who are not already covered by household’s package
- 1,700 additional full time teachers and SNAs to be recruited
- €10m a year for Palestine, on top of €2.5m for Gaza
- €212m for Arts, Heritage and the Gaeltacht, an increase of €4m