Home News Business Budget 2024: The main points as €14 billion package announced

Budget 2024: The main points as €14 billion package announced

10th October 2023

The Government has announced Budget 2024 which includes a a host of cost-of-living measures.

Below, we have broken down some of the main points and how they are likely to impact you:

TAX

The standard rate band will increase by €2,000 to €42,000
The 4.5% rate of USC will be reduced to 4%
The entry threshold to the USC rate will increase from €22,920 to €25,760
The higher rate of USC applied to earnings above that level up to €70,044 will come down 0.5% to 4%.
The USC concession for those with a medical card earning less than €60,000 per year has been extended by two years to the end of 2025.
A tax credit of €750 for tenants who are paying rent in respect of their principal private residence. Parents who pay for their student children to have tenancies in “rent a room” accommodation will also be able to claim the Rent Tax Credit.
Personal, PAYE and earned income tax credits will increase by €100 to €1,875.
The Home Carer Credit and the Single Person Child Carer Credit will increase by €100 each
The incapacitated child tax credit is increasing by €200.

Weekly welfare and pension payments will increase by €12.
There will be a range of 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
A once-off double Child Benefit payment to be paid before Christmas, while Child Benefit will be extended to 18-year-olds in full-time education.
A once-off double Foster Care allowance to be paid this year
The Qualified Child Increase will increase by €4 to €46 per week for under 12-year-olds, and to €54 per week for over 12-year-olds.
The monthly Domiciliary Care Allowance will increase by €10 to €340 per month
A once-off double week Cost of Living Support payment will be paid to all qualifying Social Protection recipients in January

The Free School Books Scheme will be extended to all junior cycle pupils in post-primary schools within the Free Education Scheme from September 2024 -benefiting 770,000.
The Parent’s Benefit will be extended by nine weeks from August 2024
Families with an income of less than €100,000 will see college fees for undergraduates halved from €3,000 to €1,500 this year.
All other families will see undergraduate full-time student fees cut by €1,000.
Foster children will see their position on inheritances improved by being able to avail of the Group B Capital Acquisitions Tax threshold based on their relationship to their foster parents.
The Hot School Meals Programme will be extended to an additional 900 primary schools in April 2024

The minimum wage will go up in January to €12.70.
A one-year Mortgage Interest Tax relief, capped at €1,250 per property, will be introduced for homeowners with an outstanding mortgage balance on their primary dwelling of between €80,000 and €500,000 as of 31 December 2022
A temporary tax relief for landlords will be introduced
The registration threshold for businesses paying VAT will increase from €37,500 for services and €75,000 for goods to €40,000 for services and €80,000 for goods, respectively
The banking sector will be hit with an increased levy of €200 million – an increase of €113 million on last year.
The R&D tax credit will be increased from 25 per cent to 30 per cent.
The amount an investor can claim relief on for four-year investments under the Employment Investment Incentive Scheme has doubled to €500,000.
The upper age limit for retirement relief has been extended from 65 to 70 and the reduced relief previously available on disposals from age 66 will apply from age 70.
The Key Employee Engagement Programme will be extended to the end of 2025 and expanded.
The cap on projects eligible for Section 481 tax credit for filmmakers has increased from €70 million to €125 million.
Consanguinity relief will be extended for a period of five years, while accelerated capital allowances for farm safety equipment will be extended.

An extension of the 9% VAT rate on the supply of gas and electricity for a further 12 months
Three domestic universal €150 energy credits totalling €450 between the end of this year and April 2024
The planned increase in fuel excise charges at the end of this month have been pushed back to two equal installments on April 1 and August 1, 2024.

There will be no increase in the cost of a pint or bottle of wine.
A packet of cigarettes will go up by 75c.
A domestic tax on e-cigarettes and vaping products has been signalled for next year’s budget.

The 20 per cent cut to public transport fares for adults will be extended for another year.
The qualifying age for half-price fares on public transport will be increased to include 24- and 25-year-olds.
When added to the 20 per cent fare cut for adults, it means a 60 per cent fare cut for all people aged 19-25.

There will be funding for between 800 and 1,000 new Garda trainees and a 25 per cent increase in the Garda overtime budget to help address criminal justice complaints.
Training allowance for gardaí will rise to €305 from €184 per week, applying from budget day on with payments coming on January 1st and backdated to today.
There will be funding for the first Garda reserve recruitment campaign since 2017 and €12 million for tackling Domestic, Sexual and Gender Based Violence.
Also, €9 million will be made available for increases in criminal legal aid fees of 10 per cent in 2024.

Employees with an electric company vehicle will see an overall benefit-in-kind market value relief of €45,000 in 2024.
There will be an extension of the VRT relief for battery electric vehicles for another two years to the end of 2025.