Budget 2027 reported to include income tax cuts, increase to minimum wage and reduction in carbon tax for home heating oil
Simon Harris and Jack Chambers are due to deliver Budget 2027 at 1pm.
As the minutes tick away before the Government announces Budget 2027, a number of major proposals have emerged.
The Budget will be announced at 1pm today, with €8.65bn in additional expenditure planned, including €7bn in new measures and €1.65bn in tax changes.
Ahead of Tanaiste and Minister for Finance, Simon Harris, delivering his first Budget to the Dáil, here is what has been reported so far.
Working couples are expected to be up to €1,500 better off over the course of a year under changes to income tax.
The level at which workers will begin to pay the higher rate of income tax is rising from €44,000 to €46,500, while personal tax credits will increase by €125 per worker.
A couple earning €100,000 between them would be €1,500 better off annually, while a single worker earning €50,000 would gain €750.
The tax-free threshold for inheritance from parents to children is also expected to rise to €420,000, an increase of €20,000.
A reduction in carbon tax on home heating oil is also expected to remain in place for the lifetime of the Government. The rate, which was due to rise to 71 cent per tonne of CO2 from next week, will instead increase to 48 cent.
Social Protection Minister and Mayo TD, Dara Calleary, has secured a €5 increase in the Fuel Allowance, tallying up to an additional €160 over the the winter months. The means test for single people aged over 66 will also be changed, with the weekly income threshold increasing from €534 to €641.
The State pension is expected to increase by €10 a week, while the Living Alone Allowance will rise by €3.
The Child Support Payment is expected to increase by €6, bringing it to €64 for children under 12 and €84 for those aged 12 and over.
A new cost-of-disability payment is also expected to be announced, consisting of a €500 lump sum.
First-time buyers are expected to get a boost, with the maximum amount available under the Help-to-Buy scheme increasing by €5,000 to €35,000.
The scheme currently allows first-time buyers to claim a tax refund of up to 10% of the purchase price of a new or self-build home, subject to the existing €30,000 cap.
The Rent Tax Credit is also expected to increase by €150 for single people, from €1,000 to €1,150, and by €300 for couples, from €2,000 to €2,300.
A proposal to scrap stamp duty for first-time buyers has been rejected.
The national minimum wage is set to increase by 79 cents, bringing it to €14.94 an hour.
A packet of cigarettes is expected to increase by €1, while the price of vapes is expected to rise by 20 cent per millilitre.
Minister for Enterprise Peter Burke has reportedly secured a €10 million support package for rural pubs, aimed at helping smaller pubs and stemming closures.
An Taoiseach Micheál Martin has said the Budget is for “families, for workers and helping people with rising costs”.
“We are putting more money back in workers’ pockets. Supporting families and carers with the cost of childcare and disability. Easing the burden of fuel and energy costs for those who need it most,” he said this morning.
