Budget 2027: the key measures expected
People and families will find out later today how the 2027 Budget will impact on them. Pic: iStock
Budget 2027 will be announced later today.
The €8.5 billion package, including €1.5 billion allocated to tax cuts, will be announced in the Dáil from 1 p.m., when Tánaiste Simon Harris delivers his first Budget speech as Minister for Finance.
So what measures are likely to be included?
Here are the main Budget 2027 proposals expected to feature.
The threshold at which workers begin paying the higher 40 per cent rate of income tax is expected to increase from €44,000 to €46,000 for a single person.
A €10 increase in weekly pension and welfare payments is understood to have been agreed.
An annual cost-of-disability payment worth around €500 is also expected.
Changes are also anticipated to the income disregard for Carer's Allowance recipients, currently €1,000 for single carers, along with an increase in child support payments.
A rise in the Living Alone Allowance, potentially worth €5 per week, is also under consideration.
The Taoiseach confirmed over the weekend that welfare recipients and pensioners will receive a Christmas bonus payment this year.
First-time buyers are expected to benefit from an increase in the Help-to-Buy scheme, with the maximum support rising by €5,000 to €35,000.
The rent tax credit, currently worth €1,000 a year, is also expected to increase, with a rate of €1,200 per person among the options being considered.
The tax-free rental income allowance is expected to be extended to cover backyard cabins.
Modest increases to all three inheritance tax thresholds are also anticipated.
Reduced excise duties on fuel are expected to remain in place over the winter months.
The fuel allowance is expected to increase by €5 per week, bringing it to €43. A lump-sum payment had also been examined as an alternative.
Relief from carbon tax on home heating oil is also expected to be included.
Student fees are expected to be cut by €150 across the board.
Families with children attending crèche full-time could save up to €1,000 per child annually through enhanced subsidies under the National Childcare Scheme.
Further details of Simon Harris's new State-backed investment scheme are also due to be announced. The initiative is expected to allow households to make tax-free investments in stocks and shares, subject to certain limits.
