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Budget 2021 – The Main Points

Check out the budget and how it affects you

Total budget package will be 17.75 billion euro.

  • 17 billion in expenditure and 270m in taxation
  • 8.5bn on public services including 2.1bn on contingency funding
  • Capital spending to increase by 1.6bn
  • 3.4bn euro recovery fund
  • Deficit of 21.5 billion to be recorded this year.

INCOME TAX

  • No broad changes to income tax credits or bands
  • The ceiling for the second USC rate adjusted up to 20,687
  • Weekly threshold for higher rate of employers PRSI will go from 394 to 398
  • Self employed income tax credit to rise by 150 to 1650
  • Increase in the Dependent Relative Tax Credit by 70€ to 245

CIGARETTES

  • Pack of 20 cigarettes increase by 50c
  • Pro-rata increase on other tobacco products.
  • €14 now for most popular pack of cigarettes

SOCIAL PROTECTION

  • Social welfare rates to be maintained in 2021
  • Increase in the Living Alone allowance of 5€ to 19€
  • Fuel allowance up by 3.50 a week to 28€
  • Children’s Benefit up by 5 euro for over 12s and 2 euro for under 12s
  • Increase in carers support grant by 150 to 1850 a year
  • Benefit to be extended by a further three weeks

CHRISTMAS BONUS

Xmas bonus to be paid to those on PUP and other welfare if they’ve been on that for 4 months instead of usual 15

FUEL and CHILD BENEFIT

Fuel allowance up by 3.50 a week to 28€

SELF EMPLOYED

Self employed on PUP can take up some freelance work and not lose their benefit

PENSION AGE

Planned pension age increase in Jan 2021 WON’T proceed

TAX

There will be an extension of the tax warehousing scheme for employers to include those on TWSS

TWSS

  • The Temporary Wage Subsidy Scheme or a similar scheme will be needed out to the end of 2021
  • Govt to apply to SURE EU fund to support this which could yield 2.5 billion euro

COVID

    • There will be a new COVID restrictions support scheme to provide targeted support for businesses that have temporarily closed because of the pandemic
    • This scheme will operate when level three or higher is in place
    • The payments will be based on their 2019 weekly turnover
    • The scheme will be effective from today until March 31st. First payments mid-November

VAT

VAT for hospitality will be reduced to 9% from November 1st until December 2021

INTELLECTUAL PROPERTY

The Knowledge Development Box relief on intellectual property being extended until end Dec 2022

LIVE ENTERTAINMENT

50m for live entertainment supports and arts council funding to increase it to 130m.

SPORT

  • Increase of 36m for Sport Ireland.
  • 7m for large scale sports infrastructure
  • 2m for major sporting events

FILM

Section 481 scheme for film will now run until Dec 31st 2023 at its highest rate of 5 per cent

GAMING

Work to begin on a tax credit for the digital gaming sector from Jan 2022 on

WAREHOUSING

Self employed can also benfit from tax warehousing

ENERGY

Extension of the accelarated capital allowances scheme for energy efficient equipment for further three years

HELP TO BUY

Help to buy scheme extended until end of 2021 at the higher max 30,000 euro rate

STAMP DUTY

Stamp Duty scheme which refunds a portion of stamp duty paid on acquisition of non-residential land where it is then developed will be extended until end Dec 2022

CARBON TAX

  • Carbon tax increases by 7.50 a tonne from midnight
  • The carbon tax will increase by €7.50 every year out to 2029 and then by €6.50 in 2030 to achieve €100 per tonne

VRT

  • Changes to VRT based on emissions which is aimed at incentivising people to buy low emission cars
  • Weaker emissions tests on imports will also be changed to bring them up
  • Current VRT reliefs for hybrids will be allowed to expire in light of the new rates system

NOx

Nitrogen Oxide surcharge bands to increase

MOTOR TAX

Changes to the motor tax regime. Rates unchanged for those before 2008. Most polutant cars impacted

CORPORATION TAX

No change to the 12.5 per cent rate of Corporation tax

CAPITAL GAINS

Change to Capital Gains Tax Entrepreneur Relief so that anyone who has owned at least 5% of the shares for continuous three years will qualify for relief

CAPITAL SPEND

Capital investment of 10.1 billion in 2021

EXPENDITURE

500m in additional expenditure for businesses in addition to tax measures

RATES

Commerical rates waiver extended for final Q of this year at cost of 300m

WATER

An additional 44 million for Irish Water for infrastructure

EDUCATION

80 million extra for school building programme, ICT and minor works scheme for Dept of Education

HOSPICE

10 million in this year funding for voluntary hospices

FIGURES

8.5 BILLION FOR COVID SUPPORTS

EDUCATION AND DISABILITY

80 million extra for school building programme, ICT and minor works scheme for Dept of Education

HEALTH

  • An extra four billion euro for the health service
  • Ireland has signed up to EU advance purchase agreements for potential COVID vaccines
  • An extra 1,146 acute beds
  • Increase in critical care beds to 321 by end of year from 255 pre-COVID
  • 1,250 community beds in 2021 including 600 new rehabilitation beds
  • 5 million extra homecare hours
  • 5 million for development of community based dementia supports
  • Funding for cancer screening services
  • 50m for new drugs and 25 mill for Healthy Ireland and National Drugs Strategy
  • 38m foe mental health under sharing the vision
  • All these measures will have up to 16,000 health sector posts.

ROADS

Construction on N56 in Donegal, N4 in Sligo, N5 in Mayo, n22 and Dunkettle interchange in Cork

RAIL

Purchase 41 additional InterCity railcar carriages and sign contract with potential for up to 600 electric carriages as part as DART+

HIGHER EDUCATION

  • 270m for Higher Ed for 20 building projects
  • 3.3bn budget for Higher Education Dept
  • About 5,000 places for demographic changes arising from calculated grades
  • 10,000 upskilling opportunities and 4,000 new apprentices

BROADBAND

132 MILLION FOR NATIONAL BROADBAND PLAN

DEFENCE

131 million for Defence Forces capital expenditure

AIRPORTS

10m for Cork and Shannon airports

SHARED ISLAND

New multi-annual capital funding of 500m over 5 years for a Shared Island Initiative

HOUSING

  • 5.2 billion for Dept of Housing – increase of 773 million on 2020
  • 500m for capital expenditure on housing for 9,500 new social housing units in 2021
  • 65m for deep retrofitting of existing social housing
  • Expansion of HAP tenancies. 800 more rental accomodation scheme tenancies
  • 85,000 tenancies supported through next year
  • 22m for homelessness programmes including additional beds
  • 110m for affordable housing package for affordable and cost rental
  • The Land Development Agency will have 1.2 billion of funding available when it’s set up
  • Will deliver nearly 9,000 affordable housing and cost rental over next few years
  • 210m under Rebuilding Ireland Home Loan scheme

HERITAGE

29 million for heritage sites

ENTERPRISE

  • 1.1bn to department of enterprise
  • Credit guarantee scheme, LEO supports and developing R&D

TOURISM

55m for a tourism business support scheme and 5 million for toruism product development

GAEILGE

14m extra for the Gaeltacht and Irish language to 78 million total.

CLIMATE

An additional 100m of carbon tax revenue will be put towards energy efficiency of our homes

PUBLIC TRANSPORT

An additional 1 billion euro for public transport in 2021

CARS

There will be increased deployment of electric cars across the public service

EDUCATION

  • Dept of Ed will have an 8.9bn euro budget
  • 2bn of that will be put towards children with special education needs
  • 900 additional SNAs and 403 additional teachers
  • Reduction in the pupil teacher ration by 1 to 25:1 in primary schools by providing more than 300 posts
  • SUSI grant for postgraduates will rise by 1,500 to 3,500 and income eligibility threshold has been changed.
  • 50m fund to give all third level full time students 250 euro

AGRICULTURE

  • 179m extra for Dept of Agriculture
  • Funding to include controls on agri-food exports and imports to/from the UK post Brexit

STARDUST

Funding for the inquest into the Stardust tragedy

ICT

  • Further ICT for the Gardaí and courts services under 258m for them.
  • Forensic Science Lab and redevelopment of Limerick Prison funded

CHILDREN

  • 120m increase for Dept of Children
  • Includes 61m for Tusla

EARLY YEARS

638m investment in further years education and childcare in 2021

FOREIGN AFFAIRS

30m extra for Foreign Affairs