BUDGET 2023 (Part1)
Yesterday's Budget has come at a time where cost of living increases are at the highest levels that we’ve experienced in decades here in Ireland.
Inflation is running at 9.1% and people are feeling the price rises in the supermarket, at the petrol station and in their utility bills (and almost everywhere else).
However, the economy is booming and the Government's tax take is in a good position.
With this in mind, the Government was in a position for the biggest 'Giveaway Budget' in years.
The main aim of the Budget was to ease the Cost of Living pressures on households and businesses and try to avoid sending the country into recession again.
There was something for almost everybody. Here's the main points:
- €600 in energy bill credits (split over 3 payments this winter).
- €500 tax credit for renters
- 25% reduction in child-care fees (for those availing of the National Childcare Scheme) - saving €175 per month.
- Third Level Fees (university fees etc) will be cut by €1000
- Top rates of income tax won't kick in until €40,000. A single person earning more than €40,000 will take home €640 more per year under this change.
- Personal tax credits will increase by €75.
- Small change in the second USC band which will results in a tax saving of about €40 a year for most workers.
- Core rates of social welfare will increase by €12 per week (including job seekers allowance, State Pension, Carers Allowance)
- A once off double week of child benefit to be paid, a double once off SUSI maintenance grant for students who currently qualify for it.
- Free GP care to be extended to more than 400,000 people (mainly 6-7 year olds and those on lower incomes)
- Providing funding for IVF treatments
- Free school books for primary school children
- Help to Buy Scheme will be extended until the end of 2024
The only notable tax increases were 50c on a packet of cigarettes. There will also be a carbon tax increase on petrol and diesel (however this will be offset by a reduction of the NORA levy).
Over the next few days, I’ll post a few examples in this Group of what this will mean in practice depending on your situation.
I hope this helps in some way shape or form. If I can be of any help going forward, please feel free to PM me or contact me on the details below.
Kind regards,
Danny Coad QFA
Tel: 0862422441
Tel: 00353862422441 (If contacting from abroad)
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