Saturday 16 December 2017

Budget 2017 unravelled- Here's everything you need to know

#FacebookLive footage of the #OireachtasTV Pre-Budget Special & the #Budget2017 Speeches

Posted by Houses of the Oireachtas on Tuesday, October 11, 2016
Independent.ie Newsdesk

Independent.ie Newsdesk

As the Budget 2017 was unravelled, we've got everything you need to know about how you’ll be affected by the extra €1.3 billion to be allocated.

FAMILIES

Affordable childcare scheme will see a subsidy made available to all parents from Sept 2017. We understand it's worth at least €20 a week.

The threshold for parents’ eligibility will be set at a combined gross income of €80,000. It will be capped at €8,000.

Finance minister Michael Noonan,TD and Paschal Donohoe,TD,the minister for Public Expenditure. Pic Tom Burke
Finance minister Michael Noonan,TD and Paschal Donohoe,TD,the minister for Public Expenditure. Pic Tom Burke

All families, no matter what their income levels, will be entitled to as much as €900 a year, if the child is in 40 hours per week of childcare. The payment will apply on a pro-rata basis of a State subsidy of 50 cent an hour of childcare. This will be paid directly to the childcare provider. This would mean a child in care for 40 hours a week would receive an €80 subsidy a month.

The tax-free threshold for inheritance tax will rise to €310,000 where the beneficiaries of a will are children, while all other categories will rise by 8pc.

Home Care Tax Credit is to be increased by €100.

Two weeks of paternity benefit will be available to fathers from September 1st, and the Department of Social Protection will pay €230 a week. The cost of the introduction is €5 million this year, rising to €20 million in a full year

 

EDUCATION

€9.5bn to be spent on Education - including recruitment with an emphasis on resource teachers.

A new €500 annual Cost of Education Allowance will be made available to Back to Education Allowance participants.

There will be 2,400 new teachers, including resource teachers and special needs assistants. This will not reduce the pupil-teacher ratio but will keep pace with demographic demands.

Third level education sector is to get an extra €36.5m in 2017.

 

PENSIONERS

Pensioners will save €5 a month when prescription charges for medical card holders over 70 are cut in Budget 2017.

This comes on top of a €5 increase in the weekly pension which will kick in from next March 1.

There will also be an increase in the Christmas bonus which means an extra €24 for pensioners.

 

HOUSING

Donohoe announced €1.2bn for housing in 2017, including 47,000 social houses.

An additional €105 million for housing assistance payments scheme. This brings budget for this to €153 million, increase of 220pc compared to 2016. This will enable additional 15,000 households to avail of this payment and will mean that over 21,000 applicants for social housing will have their housing needs met next year.

A Help-To-Buy scheme for first-time buyers in the form of a 5pc grant on new-build homes. Maximum rebate is €20,000 on purchases up to €600k.

The Help-To-Buy scheme will be back-dated to July 19th and run until the end of 2019.

There will be a boost for those who want to earn extra money by renting out a room in their home.

Landlords get an extra 5pc in mortgage interest relief, while homeowners can rent a room out for €14k a year without paying tax.

There’s going to be an extra €28 million for emergency homeless accommodation.

 

JOBS

4,500 additional public services are to hired including nurses, gardaí and teachers.

There will be 2,400 new teachers next year, of which 900 will be resource teachers.

Funding for 1,000 new nurses.

There will be 800 new gardai.

It's forecasted that there will be 43,000 more jobs at the end of 2017 across all sectors.

 

BREXIT

Additional funding for IDA Ireland, Enterprise Ireland and Local Enterprise Offices. 

A capital gains tax reduction for start-up companies of 10pc on earnings up to €10m. 

The maintenance of the lower 9pc VAT rate for tourism.

Due to cross-border trading there will be no increase in  the price of alcohol or petrol.

Offshore tax evasion is to be targeted on foot of revelations in the 'Panama Papers' and Revenue are getting an extra €5m.

 

WORKERS

USC cuts see 0.5pc chopped off three lowest rates. A worker on €50,000 will gain €5 a week as a result. USC changes are from 1 January 2017.

Savers will see a 2pc reduction in Dirt, from 41pc to 39pc. Reduced to 33pc by 2020.

There is to be an increase in the minimum wage by 10c to €9.25 an hour. 

Self-employed tax credit rises by €400 bringing it to €950. This will benefit 147,000 workers.

Self-employed to receive PRSI benefit for the first time.

The government is to introduce a new lower rate of capital gains tax of 10pc for entrepreneurs.

Jobseekers' allowance will rise in line with other social welfare payments by up to €5.

Share ownership scheme SME focused to be introduced in 2018 budget.

Noonan: Ireland’s 12.5% corporation tax rate will not be changed and nobody in Europe or anywhere else is asking for it to be changed. 

 

RURAL IRELAND

€15m to progress the National Broadband Plan to provide high-speed internet to the regions.

At least an extra €4m for the Town and Village Renewal Scheme. 

A new affordable credit scheme for farmers.  Extra funding for the Clár scheme. 

Initiatives to support more arts in rural town. 

A pilot scheme to encourage more people to live in town centres

Good news for the fishing industry with an annual credit equivalent to the seafarers allowance.

 

HEALTH

Largest budget ever at €14.6 bn.

€50m to tackle hospital waiting lists, including €20m for NTPF.

Funding for 1,000 new nurses. 

Medical cards for 10,000 children in need of domiciliary care. 

Prescription charges cut for over-70s. 

Home-care credit to rise by €100 to €1,100.

Packs of cigarettes will go up by 50c. The move brings the standard price of a packet of cigarettes to €11 from midnight.

Mental Health Minister Helen McEntee is to get €35m for initiatives, although not all of this will be allocated in 2017. She was also get a significant capital budget for the redevelopment of St Ita's Hospital in Portrane.

The respite care grant for carers will was restored to its previous level of €1,700. The programme for government is committed to an increase in the carer’s tax credit, likely to be by €200, and carer’s benefit.

A sugar tax is to be introduced from April 2018 in line with a similar move by the UK.

 

DEFENCE

Increase in spending on our defence forces with additional €16 million.

There will be 800 new gardai.

Funding for up to 500 new civilian officers and 300 gardai will be in the Budget.

 

AGRICULTURE

A new loan fund with interest rates of below 3pc and "highly flexible" is to be made available to help farmers.

Farmers who have an "exceptionally poor year" can step out of income averaging and only pay the tax due on a current year basis

Government sources say a €150m scheme, which is partly being funded by the EU, will be unveiled by Agriculture Minister Michael Creed.

€25 million for new animal welfare scheme for sheep to support sheep sector.

Government are putting an extra €50m to help climate change scheme.

€44 million package for flood relief schemes. 

 

MOTOR

Transport Minister Shane Ross is getting €319m for regional and local roads, and funding to open Luas cross-city next year.

Owners of commercial vehicles above a certain size had their motor tax significantly reduced. The maximum rate is now €900 compared to then top level of €5,195. Unlikely to see any changes for private vehicles this time out.

Fuel prices to stay the same.

VRT relief (€5,000) on electric vehicles extended for five years to give motor industry and consumers a chance to invest in cleaner technology.

Extending VRT relief on hybrids for two years.

Starting measures to help reduce dependence of larger vehicles on diesel so that natural gas used as a vehicle fuel will be taxed at the new minimum rate of excise for eight years.

 

TOURISM

Special VAT rate of 9pc for tourism sector will be maintained to act as a buffer against weakness in sterling.

 

TARGETS

Debt/GDP ratio of 45pc targeted for mid 2020s.

Minister Noonan announces €1 billion annually will be put into "rainy day" fund after 2018.

Online Editors

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business