Changes to income tax which are due to kick in from Monday last will put more money back into peoples’ pockets and ease cost of living pressures, local Minister, Hildegarde Naughton, has said.
Minister Naughton said further cuts to tax and USC will mean individuals in Galway will keep more of their hard-earned cash, while social protection payments due to be paid in January will assist households with the cost of living.
The Minister said: “Last October, a personal income tax package to the value of €1.3 billion, as part of Budget 2024, was announced by my colleague Minister Paschal Donohoe.
“The aim of this package is to ensure Galway people take home more of their income, pay the higher rate of tax at a later point and that workers earning the minimum wage remain outside the higher rates of USC.
“The main changes will see an increase of €2,000 in the income tax standard rate band cut-off point, going from €40,000 to €42,000 for single people, from €49,000 to €51,000 for married couples or civil partners with one or two incomes, and an increase from €31,000 to €33,000 for the maximum increase in the rate band for two income couples.
“The main personal tax credits (Personal, Employee and Earned Income ) will also rise by €100 from €1,775 to €1,875.
“Government is also providing for an increase in the ceiling for the 2% rate of USC of €2,840 from €22,920 to €25,760. The increase in the 2% rate band ceiling will ensure a full-time adult worker in Galway who benefits from the increase in the hourly minimum wage rate from €11.30 to €12.70 will remain outside the top rates of USC.
“Overall, this tax package is worth €813 on the average wage, and when combined with the universal energy credit, equates to over €1,000 back in their pockets.
“We have always believed people pay too much tax on their hard-earned income and for that reason, Fine Gael in Government has led the way in cutting income tax and USC.
“It will also mean households in Galway are further protected from cost of living pressures , alongside a range of other measures to help families and individuals pay the bills.
“An increase of €100 in the Home Carer Tax Credit will also come into effect from today, bringing it from €1,700 to €1,800.”
Minister Naughton said that the Social Welfare package of €2.3bn delivered by my colleague, Heather Humphreys, TD, in October, was the largest in the history of the State.
“I am pleased that from January, there will be €12 increases in weekly social welfare payments to recipients including pensioners, carers and those with disabilities. A double cost of living payment will also be made on the week commencing January 29th, which will benefit 1.3 million people.
“Inflation is thankfully decreasing, and it is expected to reduce again in 2024 to 2.9%. Nevertheless, we know people and families are finding it hard to pay the bills due to ongoing cost of living challenges, so these measures coming just into the New Year will provide further assistance,” Minister Naughton concluded.
