It is official the 2016 Budget has been announced and here is the key points of what everybody needs to know.
Universal Social Charge
The Entry threshold to USC will rise from €12,012 to €13,000. The 1.5% rate reduced to 1% for first €12,012 of income, while 3.5% rate drops to 3% on increased threshold of €18,668. The top rate of 7% reduced to 5.5% for income in excess of €18,668 up to €70,044.
Excise Duty on Cigarettes
The Excise on a pack of 20 cigarettes will increase by 50c, making the majority of cigarette packs across the country cost €10.50.
Childcare, Child Benefit and Children’s GP Care.
The Early Childcare and Education scheme will be extended which will mean that free childcare will be provided to children aged three up until they are five and half, or until they begin primary school. The Child benefit payment will also be increased by €5 making it €140 per month for every child. Whilst free GP Care will be extended to all children under 12 years of age.
Pensions
The old age Pension will be increased by €3 per week for people aged 66 and over.
Other Welfare
The Christmas bonus for people on social welfare will be reintroduced at a rate of 75%, meaning that a recipient currently claiming €188 per week will receive €141 extra this Christmas. The current Fuel Allowance will also be increased by €2.50 per week; whilst the Respite Care Grant will be restored to €1,700.
Tax credits
The Carer tax credit will increased by €190 to €1,000 per year, whilst a €550 tax credit will introduced for small business owners and the self employed.
The Minimum Wage
The Minimum wage will be increased next January from €8.65 to €9.15 per hour.
Capital Gains Tax
CAT Group A tax free threshold for transfers between parents and their children raised from €225,000 to €280,000. Revised Capital Gains Tax relief from 2016 sees reduced rate of 20% for disposal in whole or part of a business up to an overall limit of €1m in chargeable gains.
Teacher and Garda Recruitment
The Government say 2,260 new additional teaching posts will be created in 2016, which will include 600 new resource teachers, along with 610 special needs assistants. Meanwhile additional funding will be provided to recruit and train an additional 600 gardaí.
Pension Fund Levy
The current pension fund levy of 0.15% which was introduced in 2014 will not return in 2016.
ATM and Debit Card Charges
The €5 stamp duty on ATM and debit cards will be abolished, whilst a new 12c charge will be introduced on ATM transactions.
Commercial Motor Tax
The new maximum rate for commercial motor tax will be €900 per year, which marks a significant drop from the previous €5,195.
New Residential Housing and Emergency Accommodation
It is understood that NAMA plan to build 20,000 residential units before the end of 2020, with 90% of the units being placed in the greater Dublin area. The government also plan to increase the current allocation for emergency accommodation of homeless people by adding an additional €17m in funding.
Paternity Leave
The new scheme of Statutory paternity leave of two weeks, will be introduced in September 2016.
Transfer of Farm Ownership
Income tax credit worth up to €5,000pa for five years to be allocated to partnership and split according to profit-share agreement.