Budget 2017 Summary of Changes

Budget 2017 Summary 

A summary of all the changes announced in Budget 2017 on Oct 11th 2016

Income Tax :

Farmers:  Currently, farmers’ income is taxed on an average basis over five years. But from today there will be  changes that will allow farmers, during years when profits are down, to pay tax based on their actual income for that year.

Self Employed – Earned Income Tax Credit increased to €950
Also Invalidity Pension eligibility will be extended to the self-employed from December 2017 and for Treatment Benefits, such as Dental, Optical and Hearing, from March 2017

Landlords : Deduction allowed on mortgage interest payments Increased from 75% to 80% with further reductions promised in future years until it is back to 100%.

Help to Buy Scheme (or First Time Buyers Grant) Upto €20,000 tax rebate available for FTB buying new homes under €600,00
See  more details of the Help to Buy Scheme Here

VRT exemption for electric vehicles extended for 5 years, hybrid vehicles relief is extended to the end of 2018.

Rent a Room Scheme – tax free upper limit rises from  €12k to €14k a year.

Tobacco:  Pack of 20 cigarettes to rise by 50c

Alcohol : No change

Petrol/Diesel : No change

USC: Three bands reduced by 0.5%   and the 18,668 band raised to 18.772 – full  details of USC changes  here

Capital Acquisitions Tax :  (Inheritance Tax)
The threshold  on Band A  is to be raised from €280k to  €310,000. Other thresholds will increase by 8%

Home Renovation Incentive : Retained until Dec 2018

DIRT: Reduced from 41% to 39%

Sugar Tax :Will be introduced From April 2018 –  but details not yet decided

Corporation Tax- no changes

VAT  : 9% rate retained for Tourism related activities

Motor Tax – no changes

Mortgage interest relief was due to be abolished entirely after 31 December 2017. It will now be retained beyond this date, on a tapered basis. Details are to be announced in Budget 2018.

Minimum Wage : Increase to €9.25 from €9.15 an hour – full details here

Childcare Subsidy : New Single Affordable Childcare Scheme with a universal subsidy for children aged 6 months to 3 years for all families who avail of Tusla registered childcare. Starting Sept 2017 . New Child Care Subsidy Details Here

The Home Carer Tax Credit: Increased by €100

State Pension : Increased by €5 a week from March 2017

Welfare Benefits :  All benefits to increase by €5 a week from March 2017. (€5 applies to the full rate – people on lower rates will get less). Welfare Increases 2017 Here

Rent Allowance: / Personal rent contribution to be reduced from €30 to €10 per week for people aged 18-24 who are receiving Jobseeker’s Allowance of €100 per week and reduced from €30 to €20 for those who are receiving €144 and €160 per week – From January 2017

Back to Education Allowance to increase by €33 per week from €160 to €193 for jobseekers aged under 26 (Not until Sept 2017)

New €500 a year  Cost of Education Allowance per annum for parents  that are in receipt of Back to Education Allowance.

Income disregard for parents getting One Parent Family Payment and Jobseeker’s Transition to be increased to €110 from €90 per week – from January. (These two combined measures represent a weekly increase of up to €15 for those earning over €90 per week.)

Welfare Christmas Bonus : Increased to 85% this Christmas 2016.  Christmas Bonus 2016 Figures Here

Child Benefit – No Change

Fuel Allowance : No Change

Prescription charges for medical card holders.  The maximum an over-70 year old  will have to pay in a month will fall from €25 to €20.

Medical cards – entitlement to a medical card will be extended to  all children in receipt of the Domiciliary Care Allowance . (Approximately 10,000 children )


11 thoughts on “Budget 2017 Summary of Changes

  1. Child Benefit – No Change
    Sure! They did all only to child care owners! Not to a single mother to help!
    Fuel allowance -0 changes too !

  2. Child benefit should be paid till finish secondary school some children are 18 and still in school

    • I read that Leo Veradkar was pushing for Child benefit untill 18 year olds leave school. Yet not a mention…is there no benefits at all. How will some of us manage.

  3. Does Adult Dependent on State Contributory Pension also qualify for €5 increase ?

    • Hi Eamon – They get a €3.30 increase – the adult dependent increases seem to have been worked out on a percentage basis – which makes sense. It’s probably better than a straight €5 for everyone like they did for the main rates. Doing a flat rate increase means that people on higher types of pension or benefit get a smaller increase in percentage terms.

  4. Last year the free gp card for under 6s extended to under 12s does anyone know if this is still d case are all under 12s free now?

    • The GP Visit card has not been given to Under 12s. It was announced last year that it would happen in 2016 – but it hasn’t happened. Apparently the GPs are not happy with it.

  5. If your child is in school or the likes of fas or youth reach you do get child benefit till they are 18..I rang them today 18/10 over the same the same thing and was told NY social welfare I could get it for my daughter who is in youth reach and won’t b 18 till end of July 17

    • My son is in youthreach and will be 18 in january 2017. I get child benefit for him . Ring and ask them to post you out a form for child benefit and get the Youthreach to stamp it where it looks for a school or youthreach stamp and send it back in.

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