Budget 2018: All You Need To Know

Budget 2018: All You Need To Know
Rachael O Brien
Rachael O Brien

10 Oct 2017

Budget 2018 has been delivered by Finance Minister Paschal Donohoe.

Tax cuts and spending increases of 1.2 billion euro were announced in the Dáil Chamber this afternoon. 

The budget will amount to €60.9 billion for 2018 - that's €12,700 per person in the country.

Minimum wage workers have been taken out of the second band of USC. 

There will be more nurses, doctors, teachers and Gardaí, more take home pay for workers and higher payments for those on welfare.

The VAT rate on sunbed services will increase from 13.5% to 23%

The cost of cigarettes are going up by 50 cent, petrol and alcohol are staying the same and a sugar tax has been introduced on fizzy drinks. 

See a rundown of all the details announced in the Daíl today below.

TAXES

  • The total tax reductions in budget 2018 on income will be €335 million.
  • €1.5 billion will be transferred next year from Ireland Strategic Investment fund for a 'Rainy Day Fund.' From 2019 €500 million a year will be added.
  • Cigarettes are going up an extra 50c on a pack of 20
  • A sugar tax will be in introduced - a litre of fizzy drinks with 8g per 100ml will go up by 30 cent while a litre of fizzy drinks with 5-8g per 100ml will go up by 20 cent. 
  • The VAT rate on sunbed services will increase from 13.5% to 23%
  • Point of entering higher income tax rate raised by €750 from €33,800 to €34,550
  • Entry point to USC remains at €13,000
  • 2.5% rate lowered to 2% with ceiling for this rate raised from €18,772 to €19,372 (keeps minimum wage earners out of it)
  • 5% USC rate lowered to 4.75%
  • If you're under 70 there's a reduction in the prescription charge tax from €2.50 to €2 per item

EXPENDITURE

  • €1.83 billion will be invested in housing in 2018 with 3,800 new social houses built next year
  • The Housing Assistance Payment scheme is getting an additional €149 million to support an additional 17,000 households in 2018.
  • €116 million will be set aside for emergency accommodation - that's up 15 million. 
  • The biggest health budget ever will see a total spending reach 15.3 billion euro in 2018.
  • Funding will be given to hire an extra 1,800 frontline health staff.
  • 1300 extra teaching posts will be created in schools for 2018, however the student teacher ratio will be lowered to 26:1
  • 1000 extra SNA's will be introduced by September 2018.
  • 800 extra Gardaí are to be recruited in 2018 with an additional 500 civilians to be hired into the force.
  • There will be an extra €2.5m for Irish language training in 2018.
  • Tulsa is to get extra funding of €40m for child protection.
  • €47.5 million for higher and further education sectors. 
  • €5 per week in all weekly social welfare payments from last week of March 2018.
  • €20 million is being invested in a free 2 year pre-school programme.
  • Dept of Transport, Tourism & Sport will get €111 million for sport in 2018.
  • An extra €471 million in Primary Care is to be made available from 2018 - 2021.