October 2008 – Budget 2009 - Restoring Financial Stability while protecting the most vulnerable


Indirect Taxes

  • VAT: Increase by 0.5% to 21.5% from Dec 1st
    Wine and Cigarettes: Tax increased by 50c a pack/bottle
    Petrol: Tax increased by 8c a litre
    Motor Tax: Rates to increase by 4% for cars below 2.5 litres and 5% for those above 2.5 litres

Personal Income Tax

  • Income Levy: 1% levy on gross income up to €100,000 per annum or €1,925 per week. A 2% levy will apply to income in excess of that amount
    36% of Workers Pay No Tax
    Workers on Minimum Wage outside the tax net
    Average Industrial Wage outside higher rate tax band
    Standard rate tax band will increase by €1,000 for single earners and €2,000 for married two earners
    Tax relieved pensions contributions ceiling reduced from €275,000 to €150,000 per annum
    Standard Rating of unreimbursed medical expenses relief

Health

  • Medical Card: Changes in criteria for Medical Card for Over 70s
    Disability & Mental Health: €10 million to fund 125 additional therapy posts for children of school age
    €15 Million allocated to the Cancer Control Programme

Business

Injecting confidence in the commercial sector, regenerating the economy and providing employment.

  • 3 year Corporation Tax and CGT exemptions for Start-up companies
    Tax Credit for Research & Development increased from 20% to 25%
    Top rate of Stamp Duty on commercial property reduced from 9% to 6%

Other Key Measures

  • ATM Cards: Charges on ATM cards and combined ATM/Debit cards halved to €2.50 and €5.00
    Mortgage Interest Relief: increased for first time buyers from 20% to 25% in years 1 and 2 and to 22.5% in years 3, 4 and 5, with reduction from 20% to 15% for non first-time buyers
    €200 per annum local authority charge on non-principal private residences
    Tax relief on employer-provided-bicycles under new Cycle-To-Work Scheme
    Education: capitation funding for primary and post-primary schools is to be increased by €20 million over the 2008 levels
    Overseas Development Assistance: €891 million (0.56% of GNP) in 2009

Social Welfare Facts and Details

Personal Rates

  • Increase of €7 to €230.30 per week for the following pensioners:
    State Pension (Contributory) State Pension (Transition) Invalidity Pension recipients aged 65 years Widow's and Widower's (Contributory) Pension recipients aged 66 years and over
    Deserted Wife's Benefit recipients aged 66 years and over
    Increase of €7 to €234.70 for recipients of Death Benefit Pension aged 66 years and over
    Increase of €7 to €219.00 per week for State Pension (Non­Contributory) recipients
    Fuel Allowance to increase by €2 per week to €20 per week (January 2009) and to be extended by 2 weeks to 32 weeks.

Qualified Adults

  • Increase of €6.30 to €206.30 per week for State Pension (Contributory), State Pension (Transition) and Invalidity Pension Qualified Adults aged 66 years and over
    Increase of €4.70 to €153.50 per week for State Pension (Contributory) and State Pension (Transition) Qualified Adults aged under 66 years
    Increase of €4.60 per week for State Pension (Non-Contributory) and Invalidity Pension Qualified Adults aged under 66 years to €144.70 and €149.70 respectively

PRSI

  • Earnings ceiling for PRSI will increase by €1,300 from €50,700 to €52,000 (January 2009)

Carers

  • Increase of €7.00 from €232.00 to €239.00 per week for recipients of Carer's Allowance aged 66 years and over
    Increase of €6.50 from €214.00 to €220.50 per week for recipients of Carer's Allowance aged under 66 years
    Increase of €6.50 from €214.70 to €221.20 per week for recipients of Carer's Benefit and Constant Attendance Allowance

These increases will take effect as of January 2009

Children

  • Increase of €2 per week in the Qualified Child Increase (formerly Child Dependent Allowance). New weekly rate is €26.00 (January 2009)
    Family Income Supplement weekly income thresholds will increase by €10 per week per child, giving an increase of up to €6 per week per child (January 2009)
    Increase the additional income disregard by €50 per week from €100 to €150 for Back School Clothing and Footwear Allowance (June 2009)
    Half rate Child Benefit will be paid in respect of those aged 18 years in 2009. From 2010, Child Benefit will not be paid in respect of those aged 18 years
    Special measures for Social Welfare recipients will be introduced to ensure that they are compensated for the loss of child benefit payments for children aged 18 years
    The Early Childcare Supplement remains at €1,100 per year. This will be paid monthly instead of quarterly and eligibility is being changed to reduce the period for which children qualify for the payment from 0-6 years to 0-5 years and 6 months

People of Working Age

  • Personal Rates Increase of €6.50 to €204.30 per week to benefit the following:
    Jobseeker's Benefit and Jobseeker's Allowance
    Supplementary Welfare Allowance
    Pre-Retirement Allowance
    Farm Assist
    One-Parent Family Payment
    Widow's and Widower's (Non-Contributory) Pension, Deserted Wife's Allowance and Prisoner's Wife's Allowance
    Health and Safety Benefit

(All January 2009)

  • Increase of €6.50 to €209.80 per week for Recipients of Widow's and Widower's (Contributory) Pension and Deserted Wife's Benefit aged under 66 years
    Increase of €6.50 to €176.50 per week for recipients of Guardian's Payments
    Increase of €7.00 to €234.70 per week for Death Benefit Pensioners aged under 66 years
    Increase of €6.50 to €235.40 for recipients of Disablement Pension


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