We are hours away from the budget to be announced tomorrow at 1pm in the Dáil Chamber by Treasury Secretary Paschal Donohoe and Public Expenditure Secretary Michael McGrath. As every year, the announcement will be broadcast live on TV, radio and even here on Independent.ie. There is still much to be decided, but here are some of the key actions the coalition has agreed on.
The higher tax rate of 40 percent only applies to earned income of over €40,000 under one of the household’s peaks. The move, which Fine Gael has been pushing for, is estimated to put in the pocket of a single earner €800 and €1,600 for a couple. It’s one of the biggest tax cuts in recent years.
Renters are expected to benefit from the reintroduction of a tax credit for people renting accommodation. Government sources said the tax credit will be worth around €500. The “Help to Buy” program, which gives first-time buyers a €30,000 tax rebate, will be extended for a further two years.
Children’s Secretary Roderic O’Gorman has secured significant funding to provide a state subsidy towards daycare costs that could save families around €170 a month.
A double payment of child benefit has been agreed and will be paid out by the end of the year. Caregivers and people with disabilities should receive a one-time payment of 500 euros. Other welfare recipients are expected to receive a double payment in the weeks following the budget, while the Christmas bonus will also be paid in December.
A final number for next year’s welfare increases is still being worked out, with Social Protection Secretary Heather Humphreys still pushing for €15 a week. However, the minister has been told that the financial means for such increases are not available and the final figures could be closer to €12. However, talks are still said to be held between Ms Humphreys and Mr McGrath.
Excise duty cuts on petrol and diesel will continue into the new year, as will the VAT cut on energy bills. All households receive an electricity bill credit of 600 euros, which is paid in two or three installments. However, the energy costs are not capped.
The hospitality VAT rate will rise from the reduced pandemic rate of 9 per cent to 13.5 per cent at the end of February, which will be a major blow to pubs, restaurants and hotels.
Students are facing a reduction in their fees and could also see an increase in their grants.
A new free textbook program for children in elementary school is to be introduced and the student-teacher ratio is also to be reduced.
https://www.independent.ie/business/budget/budget-2023-from-tax-credits-for-renters-to-childcare-costs-heres-everything-we-know-so-far-42017798.html Budget 2023: From renter tax breaks to childcare costs, here’s everything we know so far