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Chris Murray of Casey & Co Accountants, Tralee goes through the main points of Budget 2017…
The details of Budget 2017 were set out by Minister for Finance Michael Noonan and Minister for Public Expenditure Paschal Donohoe in the Dáil this afternoon.
• Social welfare payments and the State pension are to increase by €5 per week and the three lowest rates of the Universal Social Charge (USC) are to fall by 0.5 per cent as part of the budget package for 2017 announced by the Government.
Cuts to three lowest rates of Universal Social Charge- 1% rate cut to 0.5%; 3% rate cut to 2.5%; 5.5% rate cut to 5%
• 2.5% USC rate ceiling increased from €18,668 to €18,772
• New income tax rebate of up to 5% under a Help to Buy Scheme for new homes valued up to €400,000
• State Pension will rise by €5 from March
• €5 increase in all weekly social welfare payments in line with State pension
• Christmas Bonus for those on social welfare will rise to 85%
• €1.2bn in funding for housing, with 47,000 new social housing units by 2021
• Additional €105m to enable 15,000 more households to avail of Housing Assistance Payment Scheme
• 2,400 additional teaching posts announced, of which 900 will be resource teachers
• 800 new gardaí to be recruited in 2017, with more civilian staff to be hired too to free up desk-bound officers
• €100 increase in Home Carers’ Credit to €1,100
• Medical card for all children who receive domiciliary care allowance
• Additional €15m to NTPF to reduce hospital waiting lists
• €25 cap on prescription charges for over 70s reduced to €20 from 1 March
• Excise duty on pack of 20 cigarettes to go up by 50 cents
• Alcohol, petrol and diesel excise duty unchanged
• Creation of a Public Service Pay Commission to report on unwinding of FEMPI legislation
• Provision of €290m for pay increases agreed under the Lansdowne Road Agreement
• New measures introduced to reduce emissions, including extending relief from vehicle registration tax on electric vehicles for five years
• 9% VAT rate for tourism and hospitality industry will be retained
• Start Your Own Business scheme to be extended for a further two years
• Low cost, highly flexible loan fund for farmers announced
• €1,270 income tax credit for fishermen
• Home Renovation Incentive Scheme extended for two years to end of 2018
• Rent a Room income ceiling up by €2,000 to €14,000
• DIRT will be reduced by 2% each year to 2020 (41% to 33%)
• Mortgage Interest Relief will be extended beyond December 2017 to 2020
• Earned Income Tax Credit for self-employed increased by €400 to €950
• Intention to introduce tax on sugar sweetened drinks in April 2018 after public consultation
• €28m increase in allocation for emergency accommodation to €100m
• New Single Affordable Childcare Scheme from September 2017 – means-tested subsidies, based on parental income, for children between six months and 15 years and universal subsidies for all children aged six months to three years
• €15m to help progress National Broadband Plan
• €319m to be spent on regional and local roads throughout the country
Chris Murray is Senior Partner at Casey & Co Accountants, 3 Day Place, Tralee, Co Kerry. If you wish to discuss how aspects of the budget may affect you please contact Chris on 066 7124439 or email info@caseyacc.com
