1st October 2024
The INTO acknowledges that a number of measures announced in Budget 2025 will benefit workers and households across the country.
Direct taxation
INTO members stand to gain from the following measures:
- The income tax standard rate band to be increased by €2,000 to €44,000 with proportionate increases for single person child carers, married couples and civil partners.
- The Personal Tax Credit, Employee Tax Credit and Earned Income Credit will all be increased from €1,875 to €2,000.
- Increases in various tax credits including the Home Carer Tax Credit (increased from €1,800 to€1,900), Single Person Child Carer Tax Credit (increased from €1,750 to €1,850) and Incapacitated Child Tax Credit (increased from €3,500 to €3,700).
- Rent Tax Credit increased from €750 to €1,000 per year.
- The 4% rate of Universal Social Charge (USC) will be reduced to 3%. The entry point for this rate will increase by €1,622, so it will apply to income between €27,382 and €70,044.
- Mortgage interest relief of up to €1,250 introduced for the 2023 tax year has been retained. The credit for 2024 will be based on the increase in interest relative to 2022 interest paid.
Other measures include:
- Reduced 9 per cent VAT on electricity and gas extended until 30 April 2025.
- €250 worth of energy credits – split over two payments, one this year, the other next year.
- The Help to Buy Scheme has been extended to the end of 2029.
- The 20% reduction in public transport fares will continue in 2025.
- A reduction of the student contribution fee by €1,000.
- A once-off reduction of thirty-three percent in the contribution fee for apprentices in higher education.
- Parents’ Leave payments increased by €15 per week.
- Two double payments of Child Benefit will be made to all qualifying households in November and December. There will also be a double payment of the Foster Care Allowance.
- A newborn grant of an additional double child benefit payment, in addition to the first month of child benefit. This will be a €420 payment to families for each newborn child.