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Significant cuts to the USC, including a 1.5 point cut in the main rate to 5.5 per cent, are the key change delivering increases in take-home pay.
Budget 2016 tax changes will mean gains for taxpayers ranging typically from €500 a year to €1,000, with some running close to €1,500 a year. This means that, overall, the Budget calculations are reasonably straightforward for most taxpayers.
The other key group to benefit more than the average is the self-employed. The Minister has announced a tax credit of €550 which goes straight to the bottom line for taxpayers in this group. This is the start of a process of giving the self-employed equal treatment in relation to a €1,650 tax credit previously granted only to PAYE taxpayers.
Families are the main winners from measures in Budget 2016, with free GP care extended to under 12’s, additional free pre-school childcare and a €5 increase in child benefit. Although Motor tax rates have been reduced for vehicles under 4000kg. A new paternity benefit of 230 euro per week is introduced for fathers taking statutory paternity leave, effective from 2016. State pensions weekly rates increased by 3 euros and Carers support grant increased by 325 euros to 1,700 euros and the carers allowance is extended to 12 weeks post the cared persons death.
The only tax increase in the package is a 50 cent rise in the price of a pack of cigarettes in what is a big pre-election package.
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