Budget 2016 heres what you need to know

Minister for Finance, Deputy Michael Noonan announced Budget 2016 today, and said the top priority was to keep the recovery growing through tax reliefs and better services for the Irish people.

He expected economic growth of 4.3% in 2016, to average 3% per annum thereafter.

Minister Noonan said there are 130,000 more people are now in work than in the low point in 2012 and forecast 48,000 new jobs in 2016, and said the unemployment rate will continue to fall.

Cigarettes will now go to €10.50 by midnight tonight.

Mr Noonan said the Budget package includes €750 million in revenue relieving measures in 2016.

Changes to the USC, which will come into effect from January 1 2016, include those eligible for USC €12,012 to €13,000, removing 7000 income earners from the USC.
1.5% rate to 1% applies to the first €12,012 of income; 3.5% rate to 3%  applies on income in excess of €12,012 up to an increased threshold of €18,668; 7% rate to 5.5% applies on income in excess of €18,668 up to €70,044.

Noonan said there will be €190 increase to the Home Carer Tax Credit to bring it up to €1,000 per year. He said his will help single income married couples with children or those who care for an elderly or incapacitated relative.

He said he was introducing a tapered PRSI credit with a maximum level of €12 per week or €624 in annualised terms

For Employer PRSI, the entry point to the top rate of 10.75% is being increased by €20 per week to €376 per week. 

The minister also announced plans for making it easier to transfer farm ownership.

Retailers will save on fees for excepting debit cards.

The pension fund levy of 0.15% introduced for 2014 and 2015 will end this year and not apply in 2016. The original 0.6% levy ended in 2014.

Minister Brendan Howlin

Minister for Public Expenditure Brendan Howlin announded the threshold for Family Income Supplement is being increased by €5 per week for families with one child and by €10 per week for families with two or more children.

Paternity leave of two weeks will be introduced from next September. Child Benefit will be increased by €5, to €140 per child per month.

The government will create 8,000 places through the Community Childcare Subvention Programme, and a further €3 million to develop after school services..

All pension payments are to be increased by €3 per week in 2016.

There will be an 2,260 additional teaching posts in 2016, including 600 new resource teachers. 

He will extend free GP care to children under 12