The Government’s Budget 2024 package worth €14 billion has been unveiled.
The Government has outlined several spending increases, once-off payments and tax cuts as part of its €14 billion Budget 2024 package.
The first Budget from Finance Minister Michael McGrath includes a package of once-off cost-of-living measures worth €2.7 billion.
Budget 2024 – Minimum wage, rent tax credits, pensions and cigarette prices to see increases.
Speaking in the Dáil, McGrath said the package will provide further support to individuals, families and businesses at a time when the cost of living remains high, as well as ensure “new investment in public service on which we all depend.”
On the high cost of living levels, McGrath admitted that “inflation continues to make life very difficult for many people”.
While noting that the inflation rate has fallen, the Minister stated that the Budget would provide financial assistance “with an emphasis on those who need it most”.
As reported prior to his address, McGrath confirmed an increase of €1.40 in the national minimum wage, bringing it to €12.70 an hour.
Based on this rise and other changes to work-related tax, the Minister said: “A full-time worker on minimum wage will see an increase of approximately €2,300 on an annual basis.”
Budget 2024: Main takeaways.
McGrath also confirmed that the Government “will once again be stepping in to provide direct help with household energy bills.”
As part of this, he extended the 9% reduced VAT rate for gas and electricity for another 12 months – estimating that consumers will save an additional €90 for electricity, while those who use gas will save an additional €62.
Given the recent increase in diesel and petrol for motorists in recent weeks, McGrath also said he will defer the final tranche of fuel excise increases which were due to take effect on 31 October.
In terms of renters, meanwhile, McGrath confirmed a rise in the Rent Tax Credit from €500 to €750 per year for 2024.
However, landlords will also benefit from the new Budget, with the Minister announcing a temporary tax relief that “will primarily benefit small landlords”.
As part of this, €3,000 of landlords’ rental income will be tax-free next year, with that figure to increase to €4,000 in 2025, and €5,000 in 2026 and 2027.
All junior cycle students will be eligible for the free school book scheme from next year, Minister for Public Expenditure Paschal Donohoe has said #Budget2024 | | Follow live updates: https://t.co/GHCMX8FYfR pic.twitter.com/RDg6MwMWoD
— RTÉ News (@rtenews) October 10, 2023
However, landlords will only receive these benefits if they commit to staying in the market for four years, otherwise, the tax will be clawed back.
McGrath also confirmed that he was increasing excise duty on a packet of 20 cigarettes by 75 cents, with a pro-rata increase on other tobacco products.
This will bring the price of cigarettes in the most popular price category to €16.75, which the Minister said “supports public health policy to reduce smoking levels in Irish society.”
Meanwhile, Public Expenditure Minister Paschal Donohoe spoke in the Dáil after McGrath, stating that social protection payments – such as pensions – will increase by €12 weekly and that all households will receive three energy credits of €150 each.
The latter will be provided in three instalments between the end of this year and April of 2024.
For more on the new measures, visit the Government’s website here.
Main image via Sasko Lazarov/© RollingNews.ie
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