Paschal Donohoe delivers Budget 2019 this afternoon and here’s what to expect.
Social welfare payments look set to increase by €5 in Budget 2019.
Minister for Finance Paschal Donohoe will announce details in the Dáil this afternoon and social welfare isn’t the only payment that will be increasing.
RTÉ have reported that the Back-to-School Allowance will also increase by €25.
Elsewhere, it’s expected that the point at which people are hit by the higher rate of income tax will rise by €750 to €35,300 and that the 9% VAT rate will be raised for the hotel and restaurant sector to 13.5%.
The middle rate of USC paid on all income between €19,300 and €70,000 will be cut from 4.75% to 4.5%.
In terms of the overall Budget package, it’s expect to lie between €1.4bn and €1.5bn. For smokers, an increase of 50 cent on a packet of 20 cigarettes is expected to be introduced, while carbon tax will remain at the same rate.
Elsewhere, a 1% increase in vehicle registration tax for newly registered diesel vehicles is set to be introduced.
With regards to the minimum wage, it’s expected to increase by 25 cents – bringing it to €9.80.
There will be an extension of PRSI benefits for the self-employed to include Jobseeker’s Benefit in late 2019 and two weeks’ paid parental leave looks set to be introduced too.
As for housing, a €300m fund for an affordable housing scheme will be introduced over three years. With regards to income eligibility for this scheme, it’s €50,000 for an individual and €75,000 for a couple. A €10,000 increase in the threshold for inheritance tax is expected too.
An additional €130m-150m is being earmarked for the Housing Assistance Payment.
Finally, in terms of health, free GP care is set to be extended to 100,000 people and the cost of this is being offset by a €25 increase in the income threshold for the GP card.
Full details will be confirmed when the Budget is delivered at 1pm.
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