Published: Tue, October 10, 2017
Health | By Jay Jacobs

What Budget 2018 means for someone earning around €20000

What Budget 2018 means for someone earning around €20000

It's the first budget for Leo Varadkar as Taoiseach and Paschal Donohoe as Minister for Finance and will have to first be passed by a Cabinet meeting this morning. That's € 12,700 per person in the country.

Unemployment is to fall to 5.7% next year.

One of the first major announcements from Mr Donohoe confirmed plans for the so-called "rainy day" fund to protect against future economic downturns.

The newly established Home Building Finance Agency will provide €750m in funding for commercial investment in new housing.

-Additional €18 million for emergency accommodation.

He has also declared war on vacant site owners, with the levy on this doubling from 3% to 7% by 2020.

-VAT increase on sunbeds from 3.5percent to 23 percent.

He pledged 1,800 new staff across front-line HSE services.

The National Treatment Purchase Fund will be given €55 million, which is a trebling on 2017's allocation.

The Sugar Tax has now been announced.

As expected, a sugar tax has been introduced in this year's budget meaning fizzy drinks etc will be affected.

In Education, €10bn is being spent on services, a move which is anticipated to bring the teacher-pupil ratio down to 26:1.

The additional allocation for the justice sector in 2018 is €63m.

There will be 800 extra gardai and 500 extra civilians for the force.

Budget 2018 will be delivered in the Dail this afternoon.

In a bid to slash skin cancer rates in Ireland - among the highest in the world - Value-Added Tax on sunbed services is to soar from 13.5% to 23%.

Tusla is to get extra funding of €40m for child protection, bringing total to €754m.

The Children's Minister says 20,000 more children will be given free childcare.

The point of entering the higher income tax rate will be raised by €750 from €33,800 to € 34,550.

The USC has an entry point of €13,000.

Minimum wage workers will see a new 2 per cent rate kick in at €19,372, meaning they won't have to pay the upper rates.

The 5% rate of Universal Social Charge will drop from 5% of income to 4.75%.

The Home Carer Credit is to increase by €100 in 2018 to €1,200 a year.

And Mr Donohoe said: "We can not hope to remain competitive if someone on a relatively low income and who decides to work a few hours' overtime has almost half that extra money taken in tax".

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