Budget 2016 (ROI)

Title: Budget 2016

Author: Citizens Information Board

Full Text & Source: http://www.citizensinformation.ie/en/money_and_tax/budget_2016.html

The Internet, Online, 19/10/2015

Sample Text

Budget 2016 was announced on 13 October 2015.

The main Budget changes that may affect people living in Ireland are set out below.

This document sets out changes in the areas of taxation, social welfare, health, housing, education, employment and other areas. It is an overview and not a complete statement of the measures announced in Budget 2016.

This document will be updated throughout the week as more details become available.

Some of the changes announced in the Budget come into effect immediately. Others take effect from the beginning of January 2016 or later in 2016. Many others have to be finalised before coming into effect.

Some elements of these measures may change when the legislation required to bring them into effect is enacted.

For a full list of the Budget changes, please see the Department of Finance website, budget.gov.ie. You can find a summary of the social welfare changes on the Department of Social Protection’s website, welfare.ie.

Income tax

The Home Carer’s Tax Credit that is given to married couples or civil partners where one spouse or civil partner works in the home caring for a dependent person is increasing from €810 to €1,000 for 2016. The home carer’s income threshold is increasing from €5,080 to €7,200.

A new Earned Income Credit of €550 is being introduced for taxpayers earning self-employed trading or professional income in certain cases and to business owner/managers who are ineligible for a PAYE credit on their salary income.

Universal Social Charge (USC)

For 2016 incomes of €13,000 (was €12,012) or less will be exempt from USC. Once your income is over this limit, you will pay the relevant rate of USC on all of your income as follows:

  • The first €12,012 @ 1%
  • €12,013 to €18,668 @ 3%
  • €18,669 to €70,044 @ 5.5%
  • €70,045 to €100,000 @ 8%
  • PAYE income in excess of €100,000 @ 8%
  • Self-employed income in excess of €100,000 @ 11%

Income tax

The Home Carer’s Tax Credit that is given to married couples or civil partners where one spouse or civil partner works in the home caring for a dependent person is increasing from €810 to €1,000 for 2016. The home carer’s income threshold is increasing from €5,080 to €7,200.

A new Earned Income Credit of €550 is being introduced for taxpayers earning self-employed trading or professional income in certain cases and to business owner/managers who are ineligible for a PAYE credit on their salary income.

Universal Social Charge (USC)

For 2016 incomes of €13,000 (was €12,012) or less will be exempt from USC. Once your income is over this limit, you will pay the relevant rate of USC on all of your income as follows:

  • The first €12,012 @ 1%
  • €12,013 to €18,668 @ 3%
  • €18,669 to €70,044 @ 5.5%
  • €70,045 to €100,000 @ 8%
  • PAYE income in excess of €100,000 @ 8%
  • Self-employed income in excess of €100,000 @ 11%

Housing

A total of €811 million is allocated for housing programmes and the continued delivery of the Social Housing Strategy 2020. In addition, local authorities will directly provide some €112 million in funding to meet housing needs.

NAMA is to work with developers to deliver a target of 20,000 residential units before the end of 2020. 90% of these units will be in the Greater Dublin Area and approximately 75% of them will be houses, mainly starter homes. This will require funding of the order of €4.5 billion.

Funding for the Seniors Alert programme is increased by 10%, to provide 10,000 monitored alarms for older people.

A new affordable rental pilot scheme will be funded by €10 million from the proceeds of the sale of Bord Gáis Eireann.

Social housing

The current allocation for social housing is being increased by €69 million to €414 million, with a view to securing accommodation for an additional 14,000 households.

It is planned to provide over 9,500 social housing units by 2018, funded through direct investment and public/private partnership, with over 3,100 of these social housing units to be provided in 2016.

Local authorities are to provide more than 1,000 new housing units through a programme of construction and acquisitions.

Under the Capital Assistance Scheme (CAS) some 450 units are to be provided for people with specific needs in 2016.

€47.7 million is allocated for the Housing Assistance Payment (HAP) in 2016, with a target of 10,000 households for transfer to HAP.

€135 million is allocated for the Rental Accommodation Scheme (RAS) with a target of 1,000 new RAS transfers.

€70 million is provided for upgrading the energy efficiency of social housing stock.

It is expected that 1,500 vacant social housing units will be refurbished and brought back to productive use. A total of €85 million will be provided for regeneration/remedial works in disadvantaged communities in 2016.

€17 million is allocated for the mortgage-to-rent scheme.

Traveller accommodation and support

€4.3 million is being provided for Traveller accommodation and support services and €5.5 million is being provided for a range of Traveller-specific accommodation schemes.

Homelessness

The current allocation for addressing homelessness is increased by €17 million to €70 million.

Funding is available under the Capital Plan to provide 500 modular housing units for homeless families.

Rent limits for the Homeless HAP Pilot in Dublin will be increased.

Adaptations and remediation

€45 million is provided for approximately 8,500 housing adaptation grants for older people and people with a disability.

€19 million is provided for the Pyrite Remediation Scheme.

€5 million is provided towards a new Lead Remediation Grant Scheme to help homeowners in addressing the issue of lead in their drinking water.

Local Property Tax (LPT)

Following a review of the Local Property Tax, it is proposed that the revaluation date for the Local Property Tax should be postponed from 2016 to 2019. The review also proposes some changes as regards exemptions from LPT for properties significantly affected by pyrite.

Housing tax reliefs

The Home Renovation Incentive is being extended until 31 December 2016.

Rent Tax Relief will continue to be reduced, as announced in Budget 2011:

Housing

A total of €811 million is allocated for housing programmes and the continued delivery of the Social Housing Strategy 2020. In addition, local authorities will directly provide some €112 million in funding to meet housing needs.

NAMA is to work with developers to deliver a target of 20,000 residential units before the end of 2020. 90% of these units will be in the Greater Dublin Area and approximately 75% of them will be houses, mainly starter homes. This will require funding of the order of €4.5 billion.

Funding for the Seniors Alert programme is increased by 10%, to provide 10,000 monitored alarms for older people.

A new affordable rental pilot scheme will be funded by €10 million from the proceeds of the sale of Bord Gáis Eireann.

Social housing

The current allocation for social housing is being increased by €69 million to €414 million, with a view to securing accommodation for an additional 14,000 households.

It is planned to provide over 9,500 social housing units by 2018, funded through direct investment and public/private partnership, with over 3,100 of these social housing units to be provided in 2016.

Local authorities are to provide more than 1,000 new housing units through a programme of construction and acquisitions.

Under the Capital Assistance Scheme (CAS) some 450 units are to be provided for people with specific needs in 2016.

€47.7 million is allocated for the Housing Assistance Payment (HAP) in 2016, with a target of 10,000 households for transfer to HAP.

€135 million is allocated for the Rental Accommodation Scheme (RAS) with a target of 1,000 new RAS transfers.

€70 million is provided for upgrading the energy efficiency of social housing stock.

It is expected that 1,500 vacant social housing units will be refurbished and brought back to productive use. A total of €85 million will be provided for regeneration/remedial works in disadvantaged communities in 2016.

€17 million is allocated for the mortgage-to-rent scheme.

Traveller accommodation and support

€4.3 million is being provided for Traveller accommodation and support services and €5.5 million is being provided for a range of Traveller-specific accommodation schemes.

Homelessness

The current allocation for addressing homelessness is increased by €17 million to €70 million.

Funding is available under the Capital Plan to provide 500 modular housing units for homeless families.

Rent limits for the Homeless HAP Pilot in Dublin will be increased.

Adaptations and remediation

€45 million is provided for approximately 8,500 housing adaptation grants for older people and people with a disability.

€19 million is provided for the Pyrite Remediation Scheme.

€5 million is provided towards a new Lead Remediation Grant Scheme to help homeowners in addressing the issue of lead in their drinking water.

Local Property Tax (LPT)

Following a review of the Local Property Tax, it is proposed that the revaluation date for the Local Property Tax should be postponed from 2016 to 2019. The review also proposes some changes as regards exemptions from LPT for properties significantly affected by pyrite.

Housing tax reliefs

The Home Renovation Incentive is being extended until 31 December 2016.

Rent Tax Relief will continue to be reduced, as announced in Budget 2011:

Health

Free GP care will be introduced for all children under 12 years of age, subject to negotiation with the Irish Medical Organisation.

€8 million is allocated to improve availability of therapeutic services for children, including speech and language therapy.

The National Women and Infants Programme will be set up in 2016 to standardise and improve maternity care across all maternity units.

Funding will be allocated to provide extra Community First Responder teams and increase the number of paramedics.

€2 million will be allocated to make the Emergency Aeromedical Service permanent.

Justice

600 new Gardaí are to be recruited in 2016.

There are significant increases in funding for the Victims of Crime Office, Forensic Science Ireland, the Courts Service, the Charities Regulator, the Legal Aid Board, the Office of Data Protection Commissioner, and Cosc – The National Office for the Prevention of Domestic, Sexual and Gender-based Violence.

The funding for Garda surveillance of criminal activity and special operations is being increased.

The budget to support Community Alert and Crimestoppers is being doubled.

Other Announcements

Arts and heritage

Over €48 million will be allocated to the Ireland 2016 Centenary Programme, including almost €31 million for major capital works.

An additional €8 million will be allocated to a cultural infrastructure programme to fund a new scheme of grants to existing regional arts and cultural centres and funding for the Cork Event Centre.

The cap on eligible expenditure for film tax relief is increased to €70 million.

Irish Refugee Protection Programme

An allocation of €25 million has been provided for accommodation, additional staffing, integration programmes, and new Emergency Resettlement and Orientation Centres.

International aid

An increase of €40 million for Official Development Assistance (to €640 million) has been announced, including an increase of €10 million in the Irish Aid budget.

Bank levy

The expiry date of the Financial Institutions Levy is extended, from the end of 2016 to 2021. This will raise an additional €750 million.

Pension fund levy

The pension fund levy of 0.15% introduced for 2014 and 2015 will end in 2015 and not apply in 2016. The original 0.6% levy ended in 2014.

Climate change

There is an allocation of €2 million for the International Green Climate Fund.

 

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