Budget 2023 is one of the most anticipated budget days in recent memory, although it’s beginning to feel like that every year.
Unlike the Budgets of the past two years focusing on the Covid-19 emergency, this year’s budget has a whole new focus, tackling the cost-of-living crisis due to rising inflation and energy bills. Essentially aiming to put money back in people’s pockets.
We are experts in Public Sector finance and that’s why we have put together this Guide to Budget 2023, focusing on what it means for you as a Public Sector employee.
The key points are:
Taxation & Workers
- Standard rate tax bands – Increase of €3,200 for an individual’s annual income taxed at 20% from €36,800 to €40,000 for single individuals & €45,800 to €49,000 for married couples / civil partners with one earner.
- Tax Credit – Increase of €75 for individual Personal / Employee and Earned Income Credits from €1,700 to €1,775.
- Home Carer – Tax credit to increase by €100 to €1,700.
- Minimum wage – To increase from €10.50 per hour to €11.30 per hour, effective January 2023.
- Universal Social Charge – An increase of €1,625 to the second-rate band (2% rate) ceiling from €21,295 to €22,920. No changes to other bands.
- Concrete Products Levy – A 10% levy on concrete products commencing 30th April 2023.
- 9% VAT on Hospitality – To cease on 1st of March 2023 & reverts to 13.5%.
- Other VAT – Newspapers / defibrillators / non-oral Hormone Replacement / non-oral Nicotine Replacement and Period Products will be subject to VAT at 0%.
Once off Cost of Living Supports
- Electricity Credit – Every household will get €600 in electricity credits in three payments of €200, the first before Christmas and the remaining two in the New Year.
- Child Benefit – Double child benefit payment in November.
- Living Alone Allowance - €200 lump sum payment in November.
- Fuel Allowance – €400 lump sum payment in November.
- Working Family Payment – €500 lump sum payment in November.
- Carers Support & Disability Payment – €500 lump sum payment in November.
- All Weekly Welfare Schemes – Double weekly payment in October and Christmas bonus.
- GP Visit cards for those on/below average income to expand with an estimated 340,000 additional people expected to benefit.
- Hospital inpatient charges are going to be removed for all public patients
- Free contraception will be available for all women aged between 16-30.
- IVF treatments will be available through the public health system for the first time
- SUSI Grant (Student Universal Support Ireland) – Once off double monthly payment in November.
- Student Contribution – A €1,000 reduction for the 2022/2023 academic year.
- PhD researchers – Once off €500 payment in November.
- Postgraduate Tuition Fee Contribution Grant – There will be €1,000 increase.
- €12 increase in weekly main Social Welfare payments and pensions from January 2023.
Public Service Employment
- 660 extra mainstream teaching posts, helping to bring down the pupil/teacher ratio to 23:1.
- 686 additional teaching posts to support those with Special Needs and 1,194 new Special Needs Assistants hired.
- There will be another 1,000 Gardaí hired, and 430 civilian staff.
- 25% reduction in costs for those availing of the National Childcare Scheme.
- Free book Scheme for Primary School Pupils from August 2023.
- Youth travel card and 20% reduction public transport fares will be extended to end of 2023.
- Help to Buy – Extension of the scheme by two years to end of 2024.
- Rent Credit – Introduction of €500 per person tax credit.
- Rental properties – Extension of relief for pre-letting expenditure up to €10,000 and a requirement for property to be vacant reduced to six months to encourage letting of vacant properties.
- Vacant Property – Introduction of a vacant property tax for houses occupied less than 30 days in the year, tax charge will be 3 times Local Property Tax rate appropriate to the property.
- Cigarettes – Increased excise duty by 50 cents per packet of 20.
- Alcohol – No increase in excise duty
- Small benefit exemption for employees increased from €500 to €1,000 per year, available over two separate vouchers.
For additional advice on your finances following Budget 2023, you can make an appointment with one of our Cornmarket Consultants here or call us on (01) 420 6757.
Please note: There may be further changes to the above information following the Finance Bill. Every effort has been made to ensure that the information provided here is accurate and up to date (as of 27th September 2022). The information provided is of a general nature and may not address the specific circumstances of a particular individual. Cornmarket does not accept any liability arising from any errors or omissions.