A host of cost-of-living measures have been announced by the Government as part of Budget 2023.
Finance Minister Paschal Donohoe revealed a total Budget package worth €11 billion to the Dail today.
But what does this year’s Budget mean for people who are under the age of 30 in Ireland?
The good news is that the budget includes some measures that could provide a boost for younger people in Ireland, including a new €500 tax credit for renters, free contraception for women under 30, and an extension of the help-to-buy scheme.
READ MORE: Earning €40,000 or less - here's what Budget 2023 means for you with good and bad news
There are also a host of benefits included for college students, especially those from the lowest income families.
Renters' tax credit
Many people under the age of 30 in Ireland are renting and therefore will be able to apply for a new tax credit worth €500 per year.
It will apply to taxpayers who are paying rent on their “principal private residence” - it will not be available to those who receive other State housing support.
It will come into effect from the years 2023 up to 2025, but the minister said it will be backdated so that it will apply in respect of rent paid in 2022.
Income tax
One of the main changes in Budget 2023 for a person earning €40,000 or less will be to PAYE.
The Government decided to change the entry point for the higher tax band rate of 40%. It has now been increased from €36,800 to €40,000 for single individuals, meaning a smaller proportion of income will be subject to the higher tax rate.
Personal tax credits and employee tax credits will also see an increase of €75 each, making them worth a total of €1,775 each.
A person earning €40,000 will pay €790 less than in previous years, and you could stand to see around €65 more in your pay packet each month.
Free contraception
The free contraception scheme will be expanded, making it available for women aged between 16 to 30 years old.
Earlier this year it was introduced for women aged 17 to 25 years old.
Student benefits
College students are in for a range of different benefits from this year’s budget:
- There will be a once-off €1,000 reduction in the cost of college fees this year. From next September, the student contribution fee is to be reduced by €500 permanently (for students from families with incomes up to €100,000).
- Those in receipt of the SUSI grant payment will receive a once-off double payment in the month of November.
- The threshold for students to qualify for the 50% reduction in student contribution fees under SUSI will increase from €55,240 to €62,000.
- From next September, all SUSI maintenance grants will increase by between 10% to 14%. This means students from families on the lowest incomes are set to receive an extra €856 from next year.
- There will also be a once-off €1,000 increase in the postgraduate tuition fee grant this year, meaning their grant will increase from €3,500 to €4,500.
- A once-off payment of €500 will be made to PhD researchers in November.
- There will also be a once-off 33% reduction in the contribution fee for apprentices.
Help-to-Buy scheme
The Help-to-Buy scheme for first-time home buyers is to be extended at the current rates until the end of 2024.
The scheme only applies to new-build houses or apartments, or self-build homes, on properties that cost up to €500,000.
It gives buyers a refund of the income tax and Deposit Interest Retention Tax they have paid in Ireland over the previous four tax years.
Energy credits
As part of a once-off cost of living support, every household will get €600 worth electricity credit.
It will be split into three €200 payments with the first payment in November this year and two more in the new year, in January and March.
Transport
The 20% reduction in public transport fares across bus, train and tram services is being extended to the end of 2023.
The half-price discount on the Youth Travel Card will also be extended, meaning all adults aged 19 to 23 are eligible for 50% fares.
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