Budget 2016 - Key Points
Entry threshold to USC to rise from €12.012 to €13,000. The 1.5% rate reduced to 1% for first €12,012 of income, while 3.5% rate drops to 3% on increased threshold of €18,668. The top rate 7% reduced to 5.5% for income in excess of €18,668 up to €70,044.
Excise Duty On Cigarettes
Excise on pack of 20 cigarettes to increase by 50c, making most cigarette packs to cost €10.50 from midnight tonight.
Childcare, Child Benefit and Children’s GP Care
Early Childcare and Education scheme to be extended which will see free childcare for children aged three up until they are five and half, or until they begin primary school. Child benefit to increase by €5 to €140 per month for every child. Free GP Care extended to all children under 12 years of age.
All pensions to increase by €3 per week.
Other Welfare and Grants: Christmas Bonus, Fuel Allowance And Respite Care Grant
Christmas bonus for people in receipt of social welfare increased to 75%; Fuel Allowance to increase by €2.50 per week; and Respite Care Grant is restored to €1,700.
Carer Tax Credit
Carer tax credit increased by €190 to €1,000 per year.
Minimum wage increased from €8.65 to €9.15 per hour from 1 January 2016.
Capital Acquisitions Tax And Capital Gains Tax
CAT Group A tax free threshold for transfers between parents and their children raised from €225,000 to €280,000. Revised Capital Gains Tax relief from 2016, reduced rate of 20% for disposal in whole or part of a business up to an overall limit of €1million in chargeable gains.
Teacher And Garda Recruitment
2,260 new additional teaching posts, including 600 new resource teachers. Furthermore there will be an extra 610 special needs assistants.
Pupil teacher ratio at primary schools to be reduced from 28 to 1 to 27 to 1, secondary level to fall from 19 to 1 to 18.7 to 1.
Funding to recruit and train an additional 600 Gardaí.
Pension Fund Levy
The remaining pension fund levy of 0.15% introduced in 2014 and 2015 will end this year and will not apply in 2016.
ATM And Debit Card Charges
12c charge to be introduced on ATM transactions as a replacement for the current €5 stamp duty on debit and ATM cards.
Commercial Motor Tax
The maximum rate of commercial motor tax will be €900 per annum, down from €5,195.
Residential Housing and Emergency Accommodation
NAMA 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. About 75% of these units will be houses, mainly starter homes. Increase in current allocation for emergency accommodation of homeless people by an additional €17 million.
Introduction of statutory paternity leave of two weeks, to take effect in September 2016.
Transfer of Farm Ownership
Income tax credit worth up to €5,000pa for five years to be allocated to partnership and split according to profit-share agreement.