As inflation continues to rise and the country worries about the approaching winter, the 2023 budget has been brought forward and is fast approaching.
aoiseach Micheál Martin has pledged that “significant support” will be announced as part of the €6.7 billion budget, which takes place on Tuesday 27 September.
This year’s budget will consist of two parts – the budget itself and a separate package of one-off cost-of-living measures that could total over €1.5 billion.
What we know so far about the 2023 budget and what measures are planned:
Employees could receive tax breaks of almost 1,000 euros
The average worker could get almost €1,000 a year in tax cuts on their household if the government introduces a range of measures outlined this week.
Public Expenditure Secretary Michael McGrath has unveiled a potential €1.8 billion budget package that includes sweeping income tax and USC cuts and increases in tax credits.
If all measures were announced on budget day, a taxpayer with an annual income of 45,000 euros could save up to 959 euros per year.
Ministers are considering increasing standard income rates by €2,500 and raising personal tax credits from €100 for single people to €1,800 and from €200 for married people to €3,600.
The PAYE balance can also be increased by €100 from €1,700 to €1,800.
Childcare costs are to be drastically reduced within months
Parents could receive a 25 per cent reduction in childcare costs “within months” as ministers enter the final stages of budget negotiations.
Taxpayers will shoulder the burden of childcare costs from parents through increased subsidies as Children Secretary Roderic O’Gorman has promised to halve childcare costs for the next two households.
He’s now pushing for an increase in funding for his department, which would result in an average quarterly reduction in monthly childcare costs for parents in the upcoming budget.
There will be an increase in the minimum wage and sick leave
The national minimum wage will increase by 80 cents an hour to €11.30 from January 1, 2023, which would put an additional €1,600 in the pockets of those working full-time for the minimum wage over the next year.
Mr Varadkar said such an increase would be larger than any increase in welfare rates in the budget.
He also said that a new sick leave law would come into force in 2023, giving almost all workers in the state the right to sick pay of up to €110 a day. But unions have criticized the new law for straying by next year, which was originally due to come into force later this month.
€600 energy credit on the cards
Households can get three rebates of €200 or more on their electricity bills by next spring, with proposals under government consideration.
The three electricity loan payments totaling €600 or more to every household in the country could be part of measures to lower the cost of living.
Taoiseach Micheál Martin said he favored more direct support for households to cover their energy bills, rather than introducing a UK-style price cap or a windfall tax on corporate profits.
Green Party leader Eamon Ryan has confirmed that the second loan before Christmas will be deducted from bills to offset the high cost.
Double child support payments
Despite criticism that the electricity loan is a blanket measure that does not target those most in need, ministers are also considering a one-off doubling of child benefit.
The move would be a huge boost for parents, who would pay 280 euros with one child and 560 euros with two children.
The Government hopes this would be a direct support to families and would also be done before Christmas.
Tax breaks for landlords are being considered
The state is under pressure to act as an unprecedented number of landlords continue to sell their properties and make money at prices at Celtic Tiger levels amid a housing shortage. However, this is causing the rental market to shrink further, meaning tenants have fewer properties to live in.
Officials are considering a possible reduction in the high taxes landlords pay on their rental income, which can exceed 50 percent. However, they may only be able to benefit from new tax breaks if they offer long-term leases.
Support for tenants
Last year’s budget was criticized for not aiming to help tenants in any way. This year, Housing Secretary Darragh O’Brien is keen to introduce support for tenants. The government is considering a tax credit for renters on their monthly expenses.
support for schools
The Taoiseach has also promised there will be support for schools facing very high heating bills.
“Schools will need support to deal with energy costs in schools. Of course, the government will help with all of this,” Mr Martin said. “We will go as far as we can in terms of available resources and make sure we don’t make the inflation situation worse.”
help for companies
Calls have been made for pandemic-style payments to help businesses face astronomical energy bills.
Ministers are understood to be considering one-off corporate loan payments for smaller businesses.
Public transport fares were reduced by 20 percent earlier this year as part of the first cost-of-living package.
It is believed that this budget cut is likely to remain in place or even be reduced further.
Gasoline and diesel costs
The government is considering extending the 9 percent excise tax cut on petrol and diesel, due to expire at the end of this year, for a further six months to offset rising fuel costs.
https://www.independent.ie/business/budget/from-tax-cuts-to-energy-credits-and-petrol-prices-heres-everything-we-know-so-far-about-how-budget-2023-affects-you-41996406.html From tax cuts to energy credits to gas prices, here’s everything we know so far about how the 2023 budget will affect you