Budget 2024 Highlights: What You Need to Know

Key Announcements from Ministers Michael McGrath and Paschal Donohoe On Budget Day, Ministers Michael McGrath and Paschal Donohoe revealed a comprehensive package of financial measures. 

Here’s a breakdown:

• Michael McGrath announced a €14 billion spending package, including core spending and tax increases of €6.4 billion, one-time measures of €2.7 billion, and non-core expenditure of €4.75 billion.
• Paschal Donohoe introduced measures such as energy bill credits for households and additional allowances for certain welfare recipients.

Tax Breakdown

• A tax package valued at €1.3 billion will provide an average benefit of €800 per individual.
• Personal and PAYE tax credits will rise by €100, reaching €1,875.
• The threshold for the higher income tax rate has been increased by €2,000, now at €42,000.
• Adjustments to the Universal Social Charge (USC) will benefit many, with changes valued at €350 million for the upcoming year and €400 million for the following year.

Welfare and Pension Updates

• Welfare and pension recipients will see a weekly increase of €12.
• Additional lump sum payments have been announced, including €200 for the Living Alone Allowance and €400 for various support grants.

Family and Education Benefits

• Childcare costs are set to decrease by 25% by September 2024.
• A double child benefit payment of €280 per child will be made before Christmas.
• College fees for families earning under €100,000 will be halved.
• Free schoolbooks will be provided for Junior Cycle students in secondary schools.

Mortgage Relief

• Homeowners with mortgages between €80,000 and €500,000 as of December 31st, 2022, will benefit from a tax relief initiative, potentially impacting around 160,000 individuals.

Housing and Rental Incentives

• The rental tax credit will rise from €500 to €750.
• Landlords can expect tax breaks increasing annually until 2027.
• The Help-to-Buy scheme has been extended until the end of 2025.

Business and Employment Measures

• A €250 million package will support small and medium-sized businesses.
• The minimum wage will increase to €12.70 in January.
• Various tax credits and reliefs have been introduced or expanded to support businesses and investors.

Healthcare Funding

• An additional €800 million will be allocated to the health service.
• A new health resilience fund will be established, though specific details are pending.

Public Transport and Climate Initiatives

• Public transport fare reductions will continue, with expanded discounts for younger riders.
• The Future Ireland Fund and the Infrastructure, Climate, and Nature Fund will see significant investments in the coming years.

Policing and Justice

• Funding will be provided for new Garda trainees and increased Garda overtime.
• Additional funds will address domestic, sexual, and gender-based violence and support the Defence Forces.

Education and Motoring

• The budget allows for 740 new teachers and 1,200 Special Needs Assistants.
• Electric company vehicle benefits and VRT relief for battery electric vehicles have been extended.

Your Financial Future 

Navigating the complexities of a new budget can be challenging. Whether you’re considering investment strategies or need financial planning advice, FJ Hanly & Associates is here to guide you. Contact us today to ensure you’re making the most of Budget 2024’s opportunities.