Budget 2024 – Tuesday 10th October 2023.
A summary of the main Budget 2024 announcements is given below.
Analysis of the core Budget 2024 measures shows that, in net terms, households will experience an
average gain in weekly disposable equivalised income of 2.4 per cent.
The average gain from the one-off Cost of Living package results in a gain of 1.9 per cent
Details of Budget 2025 can be seen here (As announced on October 1st 2024)
Income Tax Cuts in Budget 2024
The level at which the 40 per cent tax rate kicks in is to be raised from €40,000 to €42,000.
Personal, PAYE and earned income tax credits will increase by €100 to €1,875
We estimate that these tax changes will be worth around €830 per year to a single person earning €55,000.
Home Carer tax credit increasing by €200
€200 increase in the Incapacitated Child Tax Credit
€100 increase in the Single Person Child Carer Credit
From 1 January 2024, an income disregard of up to €400 per year will apply to profits to a qualifying person from the micro-generation of electricity. See more here about Solar Panels
USC Rates
The ceiling for the lower 2 per cent rate of Universal Social Charge will go up by €2,840, meaning it will apply to earnings up to €25,760
The higher rate of USC on to earnings above €25,760 up to €70,044 will come down 0.5 per cent to four per cent.
PRSI Changes
All PRSI rates will increase by 0.1% on 1 October 2024.
From 1 January 2024, the age limit for PRSI exemption is being changed by legislation from age 66 to 70. This will apply to the employee, the employer and the self-employed PRSI liability.
This change will apply to all persons who are employees and the self-employed except for the following main categories:
- people who have already been awarded the State Pension (Contributory)
- people who have already reached 66 years of age by 1 January 2024 (born before 1 January 1958)
Reduced Childcare Costs
There will be a 25 per cent reduction in the cost of childcare from September 2024. (The National Childcare Scheme hourly subsidy will be increased from €1.40 to €2.14 effective from September 2024)
Increases to Welfare and Pensions
There will be a permanent increase to weekly welfare and pension payments of €12 per week fromJanuary 2024.
The maximum rate of all weekly social welfare payments will increase by €12 with proportional increases for qualified adults and people on reduced rates of payment (From January 1st 2024).
The weekly rate for a qualified child will increase by €4, from €42 to €46, for children under 12 years of age. It will increase from €50 to €54 for children aged 12 years and over (January 2024).
€54 per week increase in the Working Family Payment threshold.
The monthly Domiciliary Care allowance is to increase by €10
The Qualified Child Increase is to rise by €4 to €46 per week for under 12-year-olds and to €54 per week for over 12-year-olds.
Child Benefit Double Month
There will be a double child benefit payment that will be paid before Christmas. (Extra €140 per child)
Extension of Child Benefit to 18 years old in full time education
Other Welfare One Off Bonuses
There will be other lump sum payments, including:
- €200 for the Living Alone Allowance
- €400 for the Carers’ Support Grant
- €400 for the Disability Support Grant
- €400 for the Working Family Payment
- €300 for the Fuel Allowance payment
- €100 Qualified Child Bonus
- Double payment of the Foster Care Allowance
Payment Dates to be confirmed
The annual Christmas Bonus for long-term welfare recipients and pensions is to be paid in December 2023 at 100% again this year.
Cost of Living Bonus : There will be another double payment for all long term weekly welfare schemes and state pensions in January 2024 . (Same people who get the Christmas Bonus)
Electricity Credits
There will be three energy credits of €150 each, paid to households this winter. The first one is due in December 2023 , the second one will be paid in Jan/Feb 2024 and the third one in March/April 2024
Mortgage Interest Relief
A one-off mortgage interest relief of up to €1,250 will be offered to those with a home loan of between €80,000 and €500,000 at the end of 2022 . The relief will be made available on the increased interest paid on the mortgage in the calendar year of 2023 compared with that paid in 2022. (Max €1250) . Fixed rate mortgages will not be eligible.
To claim the mortgage interest tax relief, the taxpayer must file a tax return with Revenue. The relief will operate by way of a credit offset against the taxpayer’s income tax liability in 2023. It is anticipated that the relief may be claimed in early 2024.
Housing
The current rent tax credit is to be increased from €500 to €750.
Landlords will benefit from a tax credit worth between €600 and €1,000, rising every year they stay in the market up to 2027. In the first year, €3,000 of income will be taxed at the standard 20 per cent rate rather than the higher rate (meaning €600 extra to the landlord), increasing to €4,000 in 2025 (a benefit of €800 in their pocket) and €5,000 for the subsequent two years (translating to the full €1,000).
The help-to-buy scheme will now run until the end of 2025
The vacant property tax will be increased from three to five times the rate of Local Property Tax
Education
Families with an income of less than €100,000 will have college fees for undergraduate students halved to €1,500. Other families will see college fees for full-time undergraduate students cut by €1,000.
Student Grants
Maintenance grant rates will increase from January 2024. SUSI grant payments will increase by over €300, meaning the maximum student grant will rise from €6,971 to €7,313
The Postgraduate tuition fee grant will increase by €1000 for students in the 2023/2024 academic year. Postgraduate students will also be eligible to apply for a maintenance grant under the Student Grant Scheme from September 2024 – a pro-rata increase will be available from January 2024.
Minimum Wage
As expected the minimum wage will go up in January to €12.70.
Carbon Tax
Carbon tax increases as already expected will take place from Oct 2023
The rate per tonne of carbon dioxide emitted for petrol and diesel will go up by €7.50 from €48.50 to €56.00 from 11th October. This will add about 2cents a litre to petrol prices from midnight 10th Oct. The increase will be applied to petrol and auto diesel from midnight on Budget night . This increase will be applied to all other fuels from 1 May 2024.
Cigarettes
A packet of 20 cigarettes will go up by 75 cents
VAT
Reduced VAT of 9% on energy will be extended by another 12 months to the end of Oct 2024
Petrol
The final tranche of fuel excise increases, which were due to go ahead on 31 October, will be delayed until August 2024.
We will keep this page updated with any further news about what happens in Budget 2024