Tell me about . . .The highs and lows of Budget 2023

Tim Coffey, of Clonakilty-based Coffey Financial Consulting shares his Budget takeaways

Sum up Budget 23 for us? 

Ireland has come through the pandemic in pretty good economic health with tax receipts growing by about €9 billion over the past three years. This gave the government options to tackle the cost of living and they have given a broad range of benefits across the board. Low income earners may feel a bit aggrieved as they haven’t fared as well as they might have hoped for.

Some highlights? 

• Entry rate to 40% tax bracket has increased to €40,000

•  Electricity credits totalling €600 to be paid to all households

• €500 tax credit for some renters

• Increase of €12 per week to social welfare payments with extra bonus payments before year end on top of the usual Christmas bonus

• Help to buy scheme will continue until end of 2024.

Any stings? 

The vacant homes tax at three times the level of local property tax will hit some people. No reduction to the 1% levy on life assurance based premiums/investments and no reduction to the 41% tax rate on investment funds are both disappointing.