*This is a breaking news story and will be updated as more details unfold*
Another year, another budget…
Budget 2016 is underway, and we’ve listed the latest set of financial plans likely to affect you for the coming year.
Here are some of the key areas announced by Minister Noonan this afternoon:
On Employment:
Unemployment is expected to drop to 8% next year, with a drop to just 6.25% by 2021.
Noonan states the Government’s aim to have more people working in Ireland by the end of this decade than ever before.
Minimum wage set to increase from €8.65 to €9.15 per hour.
On Government Revenue:
Ireland’s deficit expected to be down to 1.2% and debt under 93% of GDP next year, which is slightly below the Eurozone average.
Mr Noonan said the Budget package includes €750 million in revenue relieving measures in 2016.
On Corporate Tax:
An Earned Income Tax Credit of €550 has been introduced for the self-employed, who do not have access to the PAYE credit.
New measures to support SMEs include the extension of a 3 year tax relief for start-ups.
On Farming & Agriculture:
Agri-food sector accounts for 12% of our exports. Income tax credit of €5000 will be allocated to farm partnership.
Minister Noonan also confirmed there will be plans introduced to ease the transfer of farm ownership.
On Tourism:
9% VAT on tourism sector remains the same.
Noonan also noted that this is despite the fact that the need for it is diminishing each year in Dublin, as room rates have been rising during times of major events.
The 1916 centenary celebrations has been allocated €50 million, to create events and initiatives ‘that everyone can be proud of’. These will be included as part of the Commemorations Programme.
Contactless transaction limit is also set to rise from €15 to €30 per transaction.
On Pension Levies:
Pension levy has been scrapped in Budget 2016. The remaining 0.15 % pension fund levy will end this year and will not be applied in 2016.
On Housing and Housing Tax:
Local Property Tax to be frozen until 2019.
NAMA is set to deliver 20,000 residential homes by 2020 – 90% of these are planned for Dublin at cost of €4.5 billion.
On Income Tax:
From January 1st , USC entry threshold increases from 12,012 euro to 13,000. This is estimated that 700,000 workers will not be liable for any USC from next year.
Budget 2016 will now see a reduction in the three lower rates: 1.5% to 1% ; 3.5% to 3%; 7% to 5.5 %. This is the first time since supplemental budget in 2009.
A single person on minimum wage will gain €708 per annum.
According to Minister Noonan, the tax cuts announced in Budget 16 will mean workers take home effectively an additional 1 weeks’ salary/wages on all incomes levels.
On Alcohol and Cigarettes:
There will be no increase on tax applied to alcohol. As predicted, cigarettes will go up by an additional 50 cents to €10.50, effective from midnight. Cigarette tax is the only tax increase and is expected to raise €4 million.
On Motoring:
There will be no increase on petrol, diesel, motor tax or vehicle registration.
On Childcare:
Children will be eligible for free childcare from 3 years of age up until they are 5 and a half or until they start primary school.
Child benefit will be €140 per month per child – an increase of €5 per month.
Minister Howlin confirms that statutory paternity leave will be introduced at two weeks per father from September.
On Education:
Minister Howlin confirms 2,260 new additional teaching posts for 2016. This will support the plans to reduce the rate of pupils to teachers at primary level of 28:1 to 27:1.
On Healthcare:
Minister Howlin has announced a health budget of 13.2 billion next year.
Free GP care will be extended to all children under 12 years of age.
On Justice:
Funding will be made available in 2016 to recruit 600 Gardaí.
