Thursday, 19 July, 2018

What Budget 2018 means for someone earning around €20000

Dara Calleary left and Michael Mc Grath outlined Fianna Fáil’s budget priorities yesterday Dara Calleary left and Michael Mc Grath outlined Fianna Fáil’s budget priorities yesterdayLEAH FARRELL ROLLINGNEWS
Melissa Porter | 10 October, 2017, 19:03

Here's Budget 2018 at a glance.

Ireland's Finance Minister more than tripled the amount of money available for tax cuts and spending increases announced in Tuesday's budget for 2018 by raising additional revenue elsewhere.

Martin Conway says such a programme would allow counties like Clare to put forward projects aimed at developing a year-round tourism trade.

It provides the highest ever spending on health and education with extra teachers, nurses and Gardai to be hired.

A Christmas Bonus payment of 85% will again be paid to all social welfare recipients in 2017.

But Donohoe focussed much of his speech on housing as the government scrambles to boost a chronic under-supply across the country, including a significant increase in a planned levy on vacant sites that owners fail to build on.

A new entity, Home Building Finance Ireland (HBFI), will be created with €750 million from the Ireland Strategic Investment Fund being allocated for commercial investment in housing through this.

"Our position is clear", he said.

Ireland's rate of Corporation Tax will remain fixed at 12.5%, with Mr Donohoe stating: "This remains a core part of our offering".

Threshold for the family income supplement will rise by €10 (£8.94) per week for families with three children.

Taoiseach Leo Varadkar had already billed it as being worth €500-600 a year.

There will be no savings in PRSI or income tax.

And Mr Donohoe said: "We can not hope to remain competitive if someone on a relatively low income and who decides to work a few hours' overtime has almost half that extra money taken in tax".

Minimum wage workers will see a new 2 per cent rate kick in at €19,372, meaning they won't have to pay the upper rates.

Entry point to the USC remains at € 13,000.

The 5% USC rate will be lowered to 4.75%.

Minister Donohoe said the top marginal rate of tax on income up to €70,044 will be 48.75 per cent as a result of the changes. "Let us resolve to do this differently now".