Budget 2023 Measures
Minister Donohoe and Minister McGrath announced details of an €11bn Budget 2023 package to tackle the cost of living crisis on Tuesday, September 27th, 2022.
During his address to Dáil Éireann this afternoon, Minister for Finance, Paschal Donohoe, said, “it is and must be a cost of living budget focusing on helping individuals, families and businesses to deal with rising prices”.
In this news article, That’s Farming has summarised a number of measures announced today:
- €11 billion cost of living package;
- €4.1 billion in once-off measures;
- €6.9 billion in permanent measures;
- Further €300 million in public service support measures from the Contingency Reserve Fund;
- Estimates inflation of 8.5% in 2022 and 7% in 2023;
- €1.1b income tax package: Standard rate cut-off will now be at €40,000 (increase of €3,200). Personal tax credit, employee credit and earned income credits will increase by €75;
- Second USC rate band will be increased from €21,295 to €22,290 to support those on the minimum wage in line with an 80c/hour increase in the national minimum wage increase that the government recently announced;
- Help-to-buy scheme extended to December 31st, 2024;
- Vacant homes tax – three times a property’s base Local Property Tax rate. Will apply to residential properties which are occupied for less than 30 days in a 12-month period;
- Rent tax credit: A credit of €500 will be available to each tenant;
- Pre-letting expenses regime for landlords: Doubling the amount that may be claimed per premises to €10,000 and by reducing the period for which a premises must be vacant from twelve to six months;
- Defective concentre products levy to contribute towards the cost of Defective Concrete Blocks Redress Scheme;
- Temporary reduction in the rate of VAT on the supply of electricity and gas from 13.5% to 9% until February 28th, 2023;
- Help to Buy Scheme to continue at current rates until the end of 2024;
- Home care tax credit to increase by €100 to €1,700;
- New Temporary Business Energy Support Scheme to assist firms with energy costs over the coming months;
- VAT on newspapers to reduce from 9% to 0% from January 1st, 2023;
- VAT on defibrillators reduced from 23% to 0%. Also the same rate to hormone replacement, nicotine replacement therapies, and a small number of period products;
- Residential Zoned Land Tax: Local authorities to publish first draft maps on November 1st, 2022. Amendments in Finance Bill 2022 to streamline the operation of the Residential Zoned Land Tax.
- Extended to December 31st, 2024: Young Trained Farmer Stamp Duty Relief, Farm Consolidation Stamp Duty Relief and Farm Restructuring Capital Gains Tax Relief;
- Extended to December 31st, 2025: Young Trained Farmer Stock Relief and Registered Farm Partnership Stock Relief;
- Time-limited scheme of accelerated capital allowances for farmers for the construction of modern slurry storage facilities to help adopt “environmentally positive” farming practices;
- More measures awaiting confirmation at the time of writing.
- €2.14b for the DAFM – €283m increase on 2022;
- €238m from the Brexit Adjustment Reserve for measures to alleviate the impact of Brexit on the agri-food sector;
- 2023 portion of carbon tax funds for agriculture included in the allocation for ACRES;
- €399m for Rural and Community Development.
- Fuel – temporary excise reductions as follows until February 28th, 2022: 5.4c/L for marked mineral oil (green diesel), 16c/L for diesel and 21c/L for petrol;
- The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €41 to €48.50 from October 12th, 2022, as per the trajectory set out in the Finance Act 2020 – Increase of 2c/L (VAT inclusive) for petrol and diesel;
- Extend the Residental Stamp Duty Refund Scheme to the end of 2025. According to the government, the net minimum stamp duty payable after a refund is 2%, whereas the normal rate for non-residential property is 7.5%;
- Redress Scheme: Levy expected to raise €80m annually and will be applied at a rate of 10% from April 3rd, 2023;
- Reduction to zero of the National Oil Reserves Agency (NORA) levy – the government said that “the NORA levy – which is collected at a rate of 2c/L (VAT exclusive) – will help offset the carbon tax increase, which means that the price at the pump will not go up as a result of taxes or levies”;
- Extension of bank levy for further year;
- Increasing excise duty on pack of 20 cigarettes by 50c with pro-rata increase on other tobacco products;
- Directing €2 billion into the National Reserve Fund and €4 billion in 2023.
- €11m for continued response to the Ukrainian refugee crisis;
- €217.5m for the National Broadband Plan to reach a target of up to 185,000 households by the end of 2023;
- €1.2b measure: Electricity credits for all households totalling €600 to be paid in 3 instalments of €200;
- Lump sum payment of €500 for weekly fuel allowance payment recipients before Christmas;
- Once-off double week cost of living support payment to all qualifying social protection recipients – pensioners, carers, jobseekers and disability payments;
- Christmas bonus in early December;
- €500 additional lump payment to Working Family Payment receipts;
- A double child benefit – €140/child in addition to normal monthly payment – in November;
- Once-off payment of €200 to Living Alone Allowance recipients;
- Once-off payment for Disability Allowance, Invalidity Pension and Blind Pension;
- €1.7b for the Department of Housing to deliver the social housing new build target of 9,100 homes.
Stay tuned to That’s Farming for more coverage.