Ministers Michael McGrath and Paschal Donohoe have unveiled a budget worth €14 billion for 2024.
Among the much-anticipated announcements is an increase in the rent tax credit, a reduction in childcare costs and the expansion of discounted public transport to 25-year-olds.
USC has been reduced to 4%, while PRSI will increase by 0.1% next year.
New costs to the consumer include an increased carbon tax and increased taxes on a packet of cigarettes.
Here's everything you need to know about Budget 2024:
- All weekly social welfare and pension payments will increase by €12
- Christmas bonus will be paid in full in early December
- €300 lump sum payment will be introduced for fuel allowance recipients
- Living Alone Allowance recipients to receive €200 lump sum
- A once-off €400 payment will be given to those who get Carers Allowance and Disability Allowance
- A once-off double week cost-of living support payment to all Social Protection recipients will be paid in January
- The lower tax band will rise by €2,000 to €42,000.
- Pay-related Social Insurance to increase by 0.1% from October 2024
- Personal employee PAYE and earned income tax credits to increase by €100.
- Universal Social Charge (USC) to drop from 4.5% to 4%.
- The entry rate into the third band of USC has been raised to €25,760
- The 9% VAT rate for gas electricity is to be extended for another 12 months
- Rental tax credit has been increased to €750
- Small landlords’ rental income of €3,000 will be disregarded in 2024, €4,000 in 2025 and €5,000 in 2026 and 2027
- Three energy credits of €150 each to be provided between the end of this year and April of next year
- Carbon tax will rise from €48.50 per tonne to €56 per tonne from October 11th
- The VAT on e-books will reduce from 9% to zero in January, bringing it in line with printed books
Cost of living
- A cost-of-living package worth €2.7 billion will be introduced based on windfall revenues from energy sector
- Minimum wage is to increase by €1.40 to €12.70
- A packet of cigarettes will increase by 75 cents, raising the price to €16.75
- A domestic tax on e-cigarettes will be introduced in next year’s budget
- A Future for Ireland fund with potential to grow to over €100 billion will be introduced to help meet the costs of running the State in the future.
- The 50% discount on public transport extended for two years and expanded to 25-year-olds up to their 26th birthday
Parents and families
- Child Benefit will be expanded to include 18-year-olds in full-time education
- A 25% reduction in childcare costs will be implemented from September 2024
- Home carer and single person child carer credits will rise by €100
- Double payment of Child Benefit to be paid before Christmas
- Double payment will also be given to those receiving Foster Care Benefit
- The Parents Benefit will be extended to nine weeks from August 2024
- The income threshold for the Working Family Payment will increase by €54 per week
- €25 million to be added to the Garda Overtime Budget
- 1000 Gardaí and up to 250 civilian staff in specialist roles to be hired in An Garda Siochana.
- €9 million to be invested in Local Enterprise Officers
- €250 million scheme for business supports is to be established
- €348 million will be invested into the National Broadband Plan to support remote workers
- €22.5 billion to be invested in the Department of Health
- €1.23 billion to be provide through the National Development Plan for infrastructure, including an €808 million increase in core current funding
- €64 million to be invested in disability service
- €7 billion to be invested into the Department of Housing
- €1.9 billion to be invested to build 9,300 new social housing units
- The Help to Buy scheme has been extended to the end of 2025
- A one-year mortgage tax relief will make 165,000 mortgage holders eligible for up to €1,250
- The Vacant Homes Tax will be increased to five times the property’s existing basic Local Property Tax
- €90 million will be spent for the retrofitting of social homes
- 740 additional teachers to support those with special educational needs
- Free schoolbooks scheme to be extended to Junior Cycle secondary school students
- Fee waivers for school transport and State exams to be introduced
- Hot school meals will be expanded to a further 900 primary schools from August 24th
- 33% cut in contribution fees for apprentices
- A €1,000 cut on the college contribution fee will apply to all students
- Third-level students living in digs and/or their parents will be eligible for the rental tax credit
- Student grants to increase by €300 from January
Climate and Environment
- €14 billion will be put aside for the new Infrastructure Climate and Nature Fund by 2025
- The fund will have a climate and nature component worth over €3 billion to help with carbon budgets through capital projects where climate targets aren't being reached
- A tax disregard up to €400 per year will apply to those who have renewable energy supplies on their home
- The consanguinity relief will be extended for five years to support transfer of farms from one generation to another
- €380 million to be invested in residential and community energy schemes
- €32m in carbon tax funding will be provided to support up to 50,000 farmers to improve biodiversity, climate, air and water quality outcomes
- €700 million to be invested into farmers using “agri-environmental practices”