The big winners of today’s budget announcement are expected to be first-time buyers, families and the self-employed.
The focus for us today will be on the radical new childcare package which is expected to allocate up to €900 euro in state support to parents with children aged between six months and three years in childcare.
The new childcare arrangement will see families on a lower income receive €8,000 every year. However, the Minister for Children, Katherine Zappone is expected to grant ALL parents some subsidy towards the cost of childcare providers no matter the income.
The Irish Times reports that the move is seen as the ‘feather in the cap’ of the minority Fine Gael-Independent Government’s first budget and is expected to be passed through the Dail with the support of Fianna Fail.
It is part of €1.2 billion package which has been allocated for tax cuts and spending increases, with more than two-thirds of that likely to go on spending increases and the rest on tax cuts.
Other cuts are expected in the two lower rates of the Universal Social Charge of up to 0.5 per cent, and a Help To Buy scheme which could see some type of income tax refund to assist first time home buyers. This help would probably only apply to brand new homes and is likely to be capped at around €20,000.
There will be a higher tax on cigarettes, and diesel and a sugar tax will be on the agenda, but this probably won’t be introduced until 2018.
And if you are worried about the cost of your glass of wine: The best you can hope for is that it is left alone, despite the Drinks Industry Group calling for a cut in excise on alcohol.
There will also be a reduction in tax on savings, increases in the home care tax credit and jobseekers’ allowance and PRSI benefit for the self-employed for the first time.
All will be revealed by our Minister for Finance, Michael Noonan at 1 pm today.
Follow us today for our analysis on what it means to you and reactions from the other parties!
