Budget 2023 is set to be released next month -Tuesday 27 September, as the Government attempts to tackle the cost of living crisis in Ireland.
Pensions and social welfare are set to be increased as well as help for renters, bonus electricity credits and a double social welfare payment before Christmas. Around €1 billion is planned to be set aside for the new Cost of Living Budget which is completely separate from the already allocated €6.7billion to Budget 2023.
Further reductions in public transport fares are expected along with electricity credit. Leo Varadkar also said that renters need to get something in the budget too.
Here is everything we know so far:
Tax bracket
There are discussions to introduce a third tax band for middle-income earners, which could see over one million taxpayers could pocket an extra €1,000 per annum.
Two options are under consideration, including income tax at 30 per cent for earnings between €36,800-€41,800, which would cost the Exchequer €525 million a year. This would see individuals and married couples with one earner take home an extra €500 a year.
The second option is to set the 30 per cent tax rate at incomes between €36,800 to €46,800, which would cost €945 million. Individuals and married one-earner couples would take home an extra €1,000 a year under this band.
Social welfare
There may be a €15 hike in pension and welfare payments in the upcoming budget. It is recommended in the Tax Strategy Group papers that all social welfare payments rise by €10 to €15.
If there is a €15 increase across all payments (costing the State around €1.1 billion). the majority of people receiving social welfare payments would receive €223 a week, while the State pension would increase to €268 per week. A €10 increase in all welfare payments is also under consideration along with a €10 hike in the Fuel Allowance and Living Alone allowance.
Child Benefit
A once-off double payment of the monthly €140 child benefit sum may be announced on Budget day. Those getting child benefit payment could be in line for a €280 one-off payment if they have one child or €560 if they have two before Christmas. A family with three children would be eligible to receive €840 and a family with twins would also get €840 as they receive one-and-a-half times the normal rate per child.
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