With Leo Varadkar and co claiming that this years budget is the first in ten years to “balance the books”, we take a look at how Budget 2018 may impact Irish households and our own abilities to balance the books. From tax and pay conditions to safer streets, we take a look at what matters most:
One of the most talked about introductions in next years budget will be the reduction in both USC and Income Tax. The current 2.5% rate will be reduced to 2% while the higher rate of 5% will be cut to 4.75%. Those who earn over €70,044 will pay 8% while self employed workers earning over €100,000 will pay an additional 3% surcharge on this amount.
There is a planned increase of €750 in the income tax standard rate band for all
earners, from €33,800 to €34,550 for single individuals and from €42,800 to €43,550 for married one earner couples. What do all these figures mean to you though? You can get a good idea of what difference these changes will make to your pocket by using this handy online calculator.
The cut off for the Family Income Supplement will be changed to €10 per week for families with 3 children and there will also be a €2 a week rise in the rate of qualified child payment. This will be welcomed by parents who’ll now have some extra money to supplement their household expenses.
In a rare move for a government budget, the price of alcohol has remained unaffected. Tobacco however has been hit again as a 20 pack of cigarettes will now cost 50 cents more from midnight of the 10th of October 2017. The government have also made steps to curb our love for sugary drinks and will be adding 20-30 cent for every litre of that Coke or 7UP in our cupboards at home.
In another rare move for a budget, drivers will be delighted to hear that the cost of fuel has not been impacted this time around. The budget also sets aside over 17 million euro for the renewable heat scheme and electric car incentives for businesses. They will introduce a Benefit in Kind tax rate of 0% for employers electric vehicles with the electricity used to power them also being exempt from BIK.
Mortgage Interest Relief:
There was bad news for homeowners as mortgage interest relief will be cut from January. This will mean that home owner occupiers who took out qualifying mortgages between 2004 and 2012 will only receive 75% of the existing 2017 relief in 2018, 50% in 2019 and 25% in 2020. The relief will then cease entirely from 2021. This will mean a cut of 25% in what has become an essential help for what is estimated to be about 300,000 homeowners.
Health and Education
With an increase of 685 million euro being allocated to the department of health, access to healthcare and services may see an improvement next year. There will be an additional 1,800 staff in front line services across acute mental health, disability, primary and community care sectors. The provision of 800 new Gardai on our streets in the coming year will hopefully lead to safer streets and a reduction in crime feel safer.
There’s good news for school children too as there will be an increase of 1,300 teachers in our schools. This will take the teacher student ratio down to 26:1. 1.7bn will also be invested into special education, with more than 1000 new special needs assistants due to be brought in by the time school commences in September 2018.
It appears on the whole that this budget has been positive for Irish Homeowners. With extra cash in our pockets, better healthcare services and more teachers in our classrooms, is this the start of what Varadkar calls the “Republic Of Opportunity”?
You could also save more household money this coming year by getting a great value Home Insurance quote with us today. We also offer a great value Motor Insurance policy. For more news, offers and content follow us on Facebook, Twitter or Instagram.