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Budget 2016 - here are all the main points

Anything that affects you, you’ll find it here.

Pasted image at 2015_10_13 01_59 PM They do look happy don't they Merrionstreet.ie Merrionstreet.ie

IT WAS TRUMPETED in advance as the giveaway budget, with the government relishing the opportunity to boost spending by €1.5 billion with an election on the horizon.

And the cash has most certainly been splashed. Naturally enough the opposition aren’t impressed mind you.

But just how does this year’s budget, delivered this afternoon by Michael Noonan and Brendan Howlin, affect you? Read on to find out…

Here are the main details of this year’s budget: 

Finance minister Noonan was up first with details on how Ireland’s tax structures will work for the year to come, followed by Minister for Public Expenditure and Reform Brendan Howlin who outlined where the government’s increased spending is to be allocated.

USC

  • The marquee event of the budget, and one of the first dealt with, the not-well-liked (to put it mildly) Universal Social Charge was in a for a kicking
  • The 1.5% rate of USC will be reduced to 1.0%
  • The 3.5% rate of USC will be reduced to 3.0%, to an increased threshold of €18,668
  • The 7% rate of USC will be reduced to 5.5%, to an increased threshold of €70,044

Read: Here’s what’s changed with the Universal Social Charge in the Budget

  • The entry point to the USC will rise from €12,012 to €13,000
  • It’s expected that some 700,000 earners will be outside the USC net completely
  • Noonan says these measures have been crafted to restrict the benefit to people earning more than €70,000 per year
  • Layman’s terms? These measures will equate to an increase in yearly income of one week’s wages says Michael Noonan

Income Tax

  • Inheritance tax threshold increases to €280,000 from €225,000
  • Introduction of a ‘tapered PRSI credit’ with a maximum level of €12 per week to alleviate the ‘step effect’ across a range of incomes

income Here's how Michael Noonan believes the tax tweaks will benefit people

Click here to view a larger image

noonan speech Michael Noonan, reading away in the Dáil this afternoon Oireachtas TV Oireachtas TV

SMEs / Corporate

  • Capital Gains Tax for the self-employed and entrepreneurs drops to 20% from 33%
  • A new ‘Earned Income Tax Credit’ to the value of €550 for self-employed  workers who didn’t previously have access to the PAYE tax credit. This is something small firms’ representatives have very much clamoured for
  • Three year tax relief for startups extended until 2018
  • Corporation Tax unchanged (no surprises there)
  • Noonan is introducing a Knowledge Development Box – basically a means of accessing a lower rate of corporate tax – 6.25% - to incentivise R&D  and unique enterprise

Pensions

  • The pension fund levy, a trademark austerity measure, has done its job apparently and is no longer needed. The 0.15% levy as it currently stands will no longer apply from January 2016

Motor Tax

File Photo Road tax for commerical vehicles has been reduced in the budget 2016. Rollingnews.ie Rollingnews.ie

  • Commercial tax rates on vehicles are to be made less complex – the range of brackets will reduce from 20 to five, ranging from €92 to €900
  • Over 28,500 vehicles are expected to be affected by the change in the tax-rate bands

Cigarettes and Alcohol

File Photo The price of a packet of cigarettes will increase by 50c in todays budget. Rollingnews.ie Rollingnews.ie

  • The cost of a pack of 20 cigarettes will increase by 50c to €10.50. This was well foreshadowed. It’ll raise €61.4 million for the exchequer in 2016, and is the only tax increase in the budget
  • Excise duty on alcohol will remain unchanged

Tourism

  • 9% VAT rate for the tourism sector to remain unchanged

Film

  • Cap on eligible expenditure increased to €70 million

Banking Sector

  • Bad news for the banks – the Financial Institutions Levy is to be extended to 2021 

howlin Brendan Howlin Oireachtas.tv Oireachtas.tv

General Expenditure Figures from Brendan Howlin

  • Gross state expenditure will be over €51.4 billion in 2016, with capital expenditure over €3.7 billion
  • 4% increase in public expenditure as opposed to an 18% increase in tax take – Howlin is particularly keen to get this point across

Jobs

  • The minimum wage is to increase by 50c to €9.15 as recommended by the Low Pay Commission
  • The Department of Jobs is to receive €792 million in 2016, €500 million of which will go to enterprise agencies. 2016 will be a good year to be an entrepreneur

Childcare and Child Benefit

File Photo Child Benefit to raise to 140 euro a month. Rollingnews.ie Rollingnews.ie

  • Free childcare to be made available for children from age three to 5 1/2, or the beginning of primary school
  • Child benefit increases from €135 to €140 per month, as expected
  • The family income supplement is being increased by €5  per week for families with one child and by €10 for those with two or more children
  • Two weeks paternity leave on the way for fathers in 2016. Good time to become a dad
  • To support parents on low incomes 8,000 places are to be created for children via the Community Childcare Subvention Programme
  • The Department of Children will be getting over €1.1 billion  in 2016

Education

  • Budget of €8.5 billion allocated to education this year
  • 2,260 new teaching posts and 600 new resource teachers on the way
  • Pupil teacher ratios to decrease from 28:1 to 27:1 for primary classes, and 19:1 to 18.7:1 for secondaries

Retail business

20/12/2013. AIB debit card Problems. Pictured a yo Sam Boal / Rollingnews.ie Sam Boal / Rollingnews.ie / Rollingnews.ie

  • In a fairly predictable budget, this is something of an anomaly: the €5 annual charge on such cards is to be scrapped, to be replaced by a 12c charge per ATM transaction, which is capped at either €2.50 or €5 depending upon the card.
  • Hmmm. Moving the deckchairs around for consumers?
  • There’s good news for retailers though, with Michael Noonan halving interchange fees faced for accepting debit card payments. The upshot of that is an estimated €36 million in savings per year

Christmas Bonus

sneaka Sneaka Sneaka

  • The Christmas bonus will increase to 75%, a threefold increase on last year’s payment
  • That means an €141 bonus for jobseekers at Christmas time, and €173 for pensioners on a weekly rate of €230

Health and Older People

 13/10/2015 Budget 2016. Pictured is an elderly Leah Farrell / Rollingnews.ie Leah Farrell / Rollingnews.ie / Rollingnews.ie

  • The Department of Health is a big winner with €13.2 billion allocated for the year
  • As expected free GP care is now extended to the under-12s
  • The old age pension has increased by €3 per week
  • The home carer’s tax credit is to be increased by €190 to €1,000 bringing it back in line with pre-2011 levels
  • The respite care grant is to be restored to €1,700
  • Fuel allowance has been increased by €2.50 to €22.50 per week
  • There’s to be no tax on fizzy drinks though. Leo Varadkar won’t be happy

Housing

13/10/2015 Budget Day 2016 Leah Farrell / Rollingnews.ie Leah Farrell / Rollingnews.ie / Rollingnews.ie

  • €414 million allocated for social housing this year, which equates to an additional 14,000 households
  • Allocation for emergency accommodation of the homeless is to be increased by €17 million
  • The revaluation date for Local Property Tax (LPT) is to be moved from 2016 to 2019, suggesting that rising house prices will not hit homeowners in 2017 with greatly increased LPT
  • Bad bank NAMA will build 20,000 social housing units by the end of 2020. This particular announcement lead to a deal of heckling from the galleries

Agriculture and the Marine

  • €1.3 billion allocated to the Department of Agriculture for the year
  • Stock reliefs for young trained farmers and farm partnerships, and stamp duty exemption for young trained farmers extended for a further three years to the end of 2018
  • A new succession transfer proposal is being brought to table with the aim of bringing clarity to the transfer of ownership of a family farm to the next generation

Justice and Defence

13/10/2015 Budget 2016. Pictured is a Garda in Dub Leah Farrell / Rollingnews.ie Leah Farrell / Rollingnews.ie / Rollingnews.ie

  • 600 new gardaí are going to be recruited
  • Resources to be made available to improve the force’s IT capabilities, and for the new policing authority
  • €2.2 billion allocated to the Department of Justice
  • €903 million has been allocated to defence, with Howlin commending the work of our defence forces in dealing with the Mediterranean migrant crisis

1916

  • €50 million has been allocated to the hundredth anniversary of the Easter Rising’s commemoration programme. So that’s almost three times the amount that the budget for emergency accommodation for the homeless has been increased by. Priorities?

Read: LIVEBLOG: Budget 2016

Read: All the breaking news from today’s Budget

Read: TheJournal.ie’s Budget 2016 coverage, in full

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125 Comments
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    Mute Raymond Dennehy
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    Sep 24th 2019, 6:45 AM

    Rabbit Ebola. Sounds like an awful death for an animal.

    208
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    Mute John O'Connor
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    Sep 24th 2019, 8:45 AM

    No danger to humans. What about dogs, cats and other wild animals that prey on rabbits?

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    Mute Edmund Murphy
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    Sep 24th 2019, 4:48 PM

    @John O’Connor: they are all safe for m it but can carry it on their fur or cloths to other rabbits.

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    Mute John Fitzgerald
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    Sep 24th 2019, 2:27 PM

    Coursing clubs are shamefully and unbelievably, lobbying for the re-issuing of the license taht would enable them to resume capturing hares with nets for use in coursing.

    The so-called Coursing Support Group Kerry is demanding that the license be restored, claiming that coursing clubs won’t do any harm if they are permitted to capture hares, as “they’d never course a sick or diseased hare”. Kerry Radio carried the following report today on this:

    And backwoods politicians are also pressing for a resumption of nationwide hare capture and live coursing, with an emergency motion on the subject tabled at a meeting of Kerry County Council!

    I hope the Minister and the NPWS will reject the pseudo-scientific nonsense emanating from the pro hare coursing lobby and its political apologists.

    Coursing practices would greatly increase the risk of the disease spreading: Coursing clubs use nets to catch the animals. They handle them casually and roughly, place them in little boxes (confinement that is totally unnatural and terrifying to them), transport them in vans or car boots to various locations and then pack them into compounds or paddocks where these normally solitary creatures find themselves in a cramped and unnatural environment: conditions ideal for the spreading of the disease.

    Coursing clubs have been asserting in recent weeks that if they are permitted to resume capturing hares with nets for their fixtures they will vaccinate the hares they capture against the disease. Some politicians have backed them in this desperate ploy.

    What they fail to mention, however, is that 1) the vaccine, called ‘Eravac’, which is licensed in Europe, is not available in Ireland and 2) more importantly, it cannot be applied to hares…just rabbits.

    Coursing clubs are NOT conservationists, as they’d like us to believe. They are by definition people who capture hares for the express purpose of setting dogs on them for “sport.”

    The ban on hare netting must remain. An entire species should be put at risk just to accommodate people who get their kicks from watching an animal running its life.

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    Mute Stephen
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    Sep 24th 2019, 3:20 PM

    @John Fitzgerald: hi john I don’t hear of or see you standing against the travellers whom hunt with lurchers sometimes four and five at a time. The hare has no chance. I’m constantly ringing the Gardaí running them out of land beside me. The Gardaí can do nothing. Just like you.
    They kill whatever moves in the land then throw it in a ditch. It’s a very common practice of theirs and what worse it’s all year round.

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    Mute francis walsh
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    Sep 24th 2019, 3:23 PM

    @John Fitzgerald: Well John, its a pity that the npws and the journal are full of antis like yourself.
    Coursing will be back this year, if left to the coursing clubs the hare will multiply and strengthen, also strong talk about the antis planting an infected rabbit, nothing would surprise me with this crowd.

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    Mute EillieEs
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    Sep 24th 2019, 4:03 PM

    @francis walsh: hilarious that you use “antis” as if it’s a bad thing to be against wild hares being trapped and hoarded together before having to run for their lives just for your bloodthirsty entertainment.

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    Mute John Fitzgerald
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    Sep 24th 2019, 5:37 PM

    @Stephen:

    I’m opposed to all forms of so-called recreational hunting/coursing of hares, whether the ones that are banned or those permitted by law. The netting ban should remain, but of course the Gardai should pursue illegal coursers/hunters and prosecute them. Landowners are getting hell from those gangs. It is important, however, not to blame any one section of society for such activities. The vast majority of travelers are law-abiding people who abhor any form of animal cruelty.

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    Mute John Fitzgerald
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    Sep 24th 2019, 5:39 PM

    @francis walsh:

    “Antis” are people opposed to animal cruelty such as hare coursing…meaning the overwhelming majority of the Irish people. Your allegation re the planting of an infected rabbit is beyond ridiculous and shows how desperate your side has become in recent weeks.

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    Mute Barry Foster
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    Sep 25th 2019, 12:50 AM

    @francis walsh: and pigs will fly ! , how is it that inspite of all the overwhelming evidence to the contrary you can still put these selfish, ignorant views out on social media.
    Coursing clubs and those who support them need to wake upto the horrific abuse they inflict on a gentle creature like the Irish hare.

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    Mute Sean
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    Sep 24th 2019, 8:20 AM

    One of the benefits of “breeding like rabbits” is that those rabbits who are fortunate enough to have the right genetic makeup to withstand this virus can rapidly repopulate and make for lost numbers.

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    Mute Thomas Troy
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    Sep 24th 2019, 8:49 AM

    Its only a matter of time before some such disease starts to affect humans as well after all there are a lot of similarities between today’s human behaviour and rabbits.

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    Mute Niall O'Neill
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    Sep 24th 2019, 10:08 AM

    Will the cruel hare coursing stop? Illegal hare coursing will still continue as part of their backward “culture”

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    Mute francis walsh
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    Sep 24th 2019, 3:49 PM

    @Niall O’Neill: not backward Néill, just great.

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    Mute francis walsh
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    Sep 24th 2019, 9:48 AM

    Only 2 hares found and the npws which is full of animal anti groups have suspended greyhound coursing, another kick in the teeth to rural Ireland, the government have passed the can and the antis win again.

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    Mute EillieEs
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    Sep 24th 2019, 11:56 AM

    @francis walsh: “The disease has been found in 12 animals but the actual number of infected rabbits and hares could be far higher as samples in a number of these cases were taken from one animal drawn from a larger group of dead animals…The disease can be transmitted directly through fluids such as saliva and urine or indirectly through clothes, animals or insects..”. You think satisfying your bloodlust is more important than trying to stop the spread of this deadly virus in the hare population?

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    Mute EillieEs
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    Sep 24th 2019, 11:56 AM

    @francis walsh: “The disease has been found in 12 animals but the actual number of infected rabbits and hares could be far higher as samples in a number of these cases were taken from one animal drawn from a larger group of dead animals…The disease can be transmitted directly through fluids such as saliva and urine or indirectly through clothes, animals or insects..”. You think satisfying your bloodlust is more important than trying to stop the spread of this deadly virus in the hare population?

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    Mute John Fitzgerald
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    Sep 24th 2019, 2:30 PM

    @francis walsh:

    Can’t take chances. Hare coursing already stands condemned and utterly discredited on animal welfare grounds (the hares are mauled and have their bones broken, and if they survive they are passed on to other clubs for re-coursing) but now this horrible “sport” poses a clear existential threat to the the Irish Hare as a species.

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    Mute John Fitzgerald
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    Sep 24th 2019, 2:33 PM

    @francis walsh:

    No, it’s a pro-rural Ireland move to suspend hare netting by gangs of coursers…the disappearance of our iconic Irish Hare from the countryside would be severe blow to rural Ireland and to our wonderful wildlife heritage that is under pressure on many fronts.

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    Mute francis walsh
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    Sep 24th 2019, 3:14 PM

    @John Fitzgerald: you’re ignorance is consistent John, you really don’t have an idea of what you are talking about.

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    Mute EillieEs
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    Sep 24th 2019, 4:04 PM

    @francis walsh: what has John said that’s incorrect?

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    Mute John Fitzgerald
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    Sep 24th 2019, 5:48 PM

    @francis walsh:

    Oh but I do know “Francis”…this time the science is against you. It’s not an animal protection group that suspended the hare netting license. A Government department acted in response to a crisis, on the best advice from a team of experts. Any resumption of hare netting by gangs across the country would place the entire species at risk. Imagine, at this time…gangs of whiskey-slugging gougers handling hares, passing them around, shoving into little boxes for transportation around the country…and then dozens of hares at a time bunched into paddocks where they await contrived chases. Add to that the widespread trafficking of hares between clubs (a hare can fetch up to a hundred euro) and you have a recipe for ecological disaster. Coursing clubs do NOT capture hares to vaccinate them or somehow “care” for them. They capture them for the sole and express purpose of setting dogs on them. Fact. So should the Irish Hare have to face possible wipe-out just to appease these gangs of predators?

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    Mute francis walsh
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    Sep 25th 2019, 1:03 AM

    @John Fitzgerald: you’re a langer.

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    Mute ➕The Gray➕
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    Sep 24th 2019, 7:15 AM

    Wasn’t there cases of a similar infection in Deer in the US over the last couple of years.

    13
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    Mute Dave Walsh
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    Sep 24th 2019, 6:59 AM

    Nature’s way is survival of the fittest

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    Mute Alan Scott
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    Sep 24th 2019, 8:12 AM

    @Dave Walsh: Or man’s way of controlling the amount of rabbets

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    Mute Dave Walsh
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    Sep 24th 2019, 9:29 AM

    @Alan Scott: that’s what guns are for…

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    Mute pat seery
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    Sep 24th 2019, 9:47 AM

    Josephine they were probably doing too much Swinging

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    Mute Edmund Murphy
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    Sep 24th 2019, 4:47 PM

    Thankfully there is a vaccine out for it. I had my bunny vacinated 2 weeks ago. Kept him out of the garden till then. On a side note. Anyone from Cork know how they rabbits on the Dunnkettle roundabout are doing?

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    Mute EillieEs
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    Sep 24th 2019, 5:06 PM

    @Edmund Murphy: the vaccine works for rabbits but not hares.

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    Mute Edmund Murphy
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    Sep 24th 2019, 5:10 PM

    @EillieEs: yep I read your comment on that earlier. Glad it at least works on Rabbits.

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    Mute EillieEs
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    Sep 24th 2019, 9:08 PM

    @Edmund Murphy: absolutely, just a shame it doesn’t work for hares too

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    Mute The Debater
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    Sep 24th 2019, 7:16 AM

    Who framed Roger Rabbit?

    9
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    Mute Ian Hester
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    Sep 24th 2019, 1:47 PM

    There’s a an aids like virus wiping out cats as well…they go off food and waste away in a week..very distressing… Vaccinate…

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    Mute stephen darling
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    Sep 24th 2019, 3:01 PM

    Elmer Fudd is on the case . We’re hunting wabbits

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    Mute Bibi Orange
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    Sep 24th 2019, 2:21 PM

    Is that the mix a my toties ?

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    Mute William Kelly
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    Sep 24th 2019, 10:02 PM

    Methinks China needs to sharpen up their disease controls, given the widespread pig, poultry, & now the furry wildlife virus outbreaks .
    For a country with unlimited state controls, gigantic food production needs, surely they should get their livestock health under strict control.
    We don’t need these almost seasonal plagues to spread everywhere.

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    Mute William Kelly
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    Sep 24th 2019, 10:01 PM

    Methinks China needs to sharpen up their disease controls, given the widespread pig, poultry, & now the furry wildlife. For a country with unlimited state controls, gigantic food production needs, surely they should get their livestock health under strict control.
    We don’t need these almost seasonal plagues to spread everywhere.

    1
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