Want to know what Budget 2023 will mean for you?
Budget day is here and we’ll be feeding you up-to-the-minute updates on the facts & figures that matter most to you.
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Tax & VAT
- €3,200 increase in the cut-off rate to higher tax rate of 40% to €40,000.
- Second USC rate band (2% rate) will rise from €21,295 to €22,920 (in line with the 80 cent per hour increase in the national minimum wage, this means full-time workers on minimum wage will remain outside the top rates of USC).
- Those with a medical card and earning less than €60,000 a year will pay a reduced rate of USC for a further year.
- Main tax credits rise by €75.
Cigarettes
- Pack of 20 cigarettes up 50c and pro-rata increase on other tobacco products.
- 0% of VAT will apply to nicotine replacement therapies.
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Housing
- New low-cost loan for residential retrofits has been introduced.
- €215M for homelessness services.
- €15m for the local authority affordable purchase scheme, AHB cost rental and shared equity scheme to deliver 5,000 affordable homes next year.
- To pay for the Mica redress scheme a levy on concrete blocks, pouring concrete and some other concrete products will be introduced. It's expected to be a rate of 10% from April 2023 and will raise €80m annually.
- There will be a new Residential Zoned Land Tax, these areas will be decided by local councils in November.
- Vacant Homes Tax to be introduced. It will apply to homes which are occupied for less than 30 days a year. It will be charged at a rate three times the Local Property Tax for the home and will be self-assessed
- The pre-letting expenses for landlords is being doubled to €10,000, and the time a property must be vacant is reduced from 12 to 6 months.
- Help to Buy is extended at current rates until the end of 2024
Energy
- Excise rate reductions of 21 cent on petrol and 16 cent per litre on diesel, and 5.4c per litre in Marked Gas oil is being extended until February 28th 2023.
- The income threshold for fuel allowance will increase from €120 to €200 above the state pension. The weekly fuel allowance means a limit to €500 for a single person and €1000 for a couple over 70.
- Fuel allowance lump sum of €400.
- €600 electricity credit for all households.
- Carbon tax increase of €7.50 a tonne will go ahead as planned on October 12th. This should put up petrol and diesel by 2c a litre, however, the Government is reducing the National Oil Reserves Agency levy to 0% to offset the cost. Therefore, fuel will remain the same.
- 9% VAT rate for electricity and gas extended until 28th February 2023.
- 20% public transport fare reduction and the Youth Travel Card discount of 50% on all operators' services extended to end of 2023.
Childcare
- 25% reduction in the cost of childcare under the national childcare scheme at a cost of €121m. Will save up to €175 a month for families.
- Working family payment thresholds up €40 a week.
- Qualified child allowance up €2 per week.
Healthcare
- Inpatient charges will be removed for all public patients.
- Free contraception scheme is being expanded to include women aged 16 to 30.
- GP visit cards extended to 6 and 7-year-olds.
- GP visit cards extended to those on or below the median income.
- Funding to recruit 6,000 additional staff to the HSE.
- VAT on defibrillators reduced to 0% from Jan 1st 2023.
Social Welfare
- €12 across-the-board increase in social welfare.
- €500 payment for carers and those with a disability in November.
- €200 on the living alone allowance.
- Home Carer Tax Credit is being increased by €100.
- €500 lump sum on working family payment.
Charity & Defence
- Additional 400 permanent Defence Force members recruited in 2023.
- 11m for the continued response to the refugee crisis from Ukraine and housing refugees.
Education
- Funding for free school books for primary school pupils
- Reduction of pupil-teacher ratio in primary schools to a historic low of 23:1
- 686 additional teachers to support those with special needs. An additional 1,194 SNAs bringing the number to 20,300
- Funding for free school books for primary school pupils
- €1,000 reduction in student contribution and doubling of SUSI grant payment. €1,000 increase to postgrad fee contribution grant.
- Student Contribution Fee cut by €500 for eligible families earning between €62,000 and €100,000.
- SUSI maintenance grants will be increased by between 10% and 14% in September 2023.
Hospitality
- VAT rate on hospitality will continue until 28th Feb 2023. So it will go to 13.5% after that.
- TBESS scheme from Revenue to help businesses which will give back 40% of the increased cost of electricity bill. A monthly cap of €10,000.
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LIVE BLOG
14:23: Extra 400 permanent Defence Force members recruited in 2023
14:23: 11m for the continued response to the refugee crisis from Ukraine and housing refugees
14:22: New low-cost loan for residential retrofits has been introduced
14:21: Free contraception scheme is being expanded to include women age 16 to 30.
14:20: Inpatient charges will be removed for all public patients under Budget 2023.
14:19: Funding for free school books for primary school pupils
14:16: 686 additional teachers to support those with special needs. An additional 1,194 SNAs bringing the number to 20,300
14:16: Funding to recruit 6,000 additional staff to the health service
14:16: 215M for homelessness services
14:15: 215m for the local authority affordable purchase scheme, AHB cost rental and shared equity scheme to deliver 5,000 affordable homes next year
14:08: 25% reduction in the cost of childcare under the national childcare scheme at cost of 121m. Will save up to €175 a month for families
14:07: The income threshold for fuel allowance will increase from €120 to €200 above the state pension. The weekly fuel allowance means a limit to €500 for a single person and 1000 for a couple over 70
14:06: Working family payment thresholds up €40 a week
14:05: Qualified child allowance up €2 a week
14:05: €12 across-the-board increase in social welfare
14:00: €1,000 reduction in student contribution and doubling of SUSI grant payment. €1,000 increase to postgrad fee contribution grant.
13:59: €500 payment for carers and those with a disability in November
13:58: €200 on the living alone allowance
13:58: €500 lump some on working family payment
13:57: Christmas bonus confirmed.
13:56 Lump sum cost of living double social welfare payment in October
13:55: Fuel allowance lump sum of €400.
13:55: €600 electricity credit for all households
13:40: Pack of 20 cigarettes up 50c and pro-rata increase on other tobacco products
13:39: 0% of VAT will apply to hormone replacement and nicotine replacement therapies
13:38: VAT on defibrillators reduced to 0% from Jan 1st
13:37: VAT on newspapers reduced to 0% from Jan 1st 2023
13:36: 9% VAT rate on hospitality will continue until 28th Feb 2023. So it will go to 13.5% after that.
13:33: Companies will be allowed to give employees €1,000 tax-free a year in vouchers, up from the current €500.
13:30: TBESS scheme from Revenue to help businesses which will give back 40% of the increased cost of electricity bill. Monthly cap of €10,000.
13:26: Carbon tax increase of €7.50 a tonne will go ahead as planned on October 12th. This should put up petrol and diesel by 2c a litre, however, the Government is reducing the National Oil Reserves Agency levy to 0% to offset the cost. Therefore, fuel will remain the same.
13:25: To pay for the Mica redress scheme a levy on concrete blocks, pouring concrete and some other concrete products. It's expected to be a rate of 10% from April 2023 and will raise 80m annually
13:24: 9% VAT rate for electricity and gas has been extended until 28th February 2023:
13:22: There will be a new Residential Zoned Land Tax, these areas will be decided by local councils in November.
13:20: Vacant Homes Tax introduced. It will apply to homes which are occupied for less than 30 days a year. It will be charged at a rate three times the Local Property Tax for the home and will be self-assessed
13:21: The pre-letting expenses for landlords is being doubled to €10,000 and the time a property must be vacant is reduced from 12 to 6 months.
13:20: Help to Buy extended at current rates until the end of 2024
13:15: The 2% Universal Social Charge rate band will increase from €12,295 to €22,920 to take account of the minimum wage increase of 0.80c per hour.
13:15: 9% VAT rate for electricity and gas extended until 28th February 2023
13:14: Excise rate reductions of 21 cent on petrol and 16 cent per litre on diesel, and 5.4c per litre in Marked Gas oil is being extended until February 28th 2023.
13:13: Home Carer Tax Credit is being increased by €100
13:12: €3,200 increase in the cut-off rate to higher tax rate at 40% to €40,000.
