Information Circular No 21/2015: Budget 2016
Budget 2016 was announced on 13 October 2015. The main Budget changes that may affect members are set out below. This is a brief overview and not a complete statement of the measures announced in Budget 2016. A more detailed analysis of Budget 2016 will be published in the Defender.
Universal Social Charge (USC)
For 2016 incomes of €13,000 (was €12,012) or less will be exempt from USC. Once your income is over this limit, you will pay the relevant rate of USC on all of your income as follows:
- The first €12,012 @ 1%
- €12,013 to €18,668 @ 3%
- €18,669 to €70,044 @ 5.5%
- €70,045 to €100,000 @ 8%
PDFORRA members should realise a reduction in Universal Social Charges of between €7 and €9 per week
Medical card holders and individuals aged 70 years and over whose aggregate income does not exceed €60,000 will pay a reduced USC rate as follows:
- The first €12,012 of Income @ 1%
- All Income over €12,013 @ 3%
Taxation
The Home Carer’s Tax Credit that is given to married couples or civil partners where one spouse or civil partner works in the home caring for a dependent person is increasing from €810 to €1,000 for 2016. The home carer’s income threshold is increasing from €5,080 to €7,200.
PDFORRA members in receipt of the Home Carer’s Tax Credit should pay €3.60 less income tax as a result of this measure.
Child Benefit
The rate of Child Benefit will increase by €5 to €140 per month for each child (January 2016). Families with twins receive one and a half times the normal monthly rate for each child. Families with multiple births receive Child Benefit at double the normal monthly rate for each child.
Child Benefit Rates: 2015 and 2016
| Number of Children | 2015 Monthly Rate € | 2016 Monthly Rate € | 2016 Annual Rate € | Yearly Increase from 2016 € |
| 1 child | 135.00 | 140.00 | 1,680.00 | 60.00 |
| 2 children | 270.00 | 280.00 | 3,360.00 | 120.00 |
| 3 children | 405.00 | 420.00 | 5,040.00 | 180.00 |
Family Income Supplement (FIS)
Family Income Supplement thresholds will be increased by €5 for each of the first two children per week. The threshold for the third and all other children will increase by €10 (January 2016).
The level of FIS payment will continue to be based on 60% of the shortfall between net weekly family income and the applicable weekly family threshold. This measure will cost €18 million. It will benefit nearly 60,000 families and over 131,000 children. It will also result in an additional 1,500 households and 3,365 children becoming eligible for FIS.
| Family Income Supplement (FIS) | ||
| Family Size | 2015 Income Limit | 2016 Income Limit |
| 1 child | €506.00 | €511.00 |
| 2 children | €602.00 | €612.00 |
| 3 children | €703.00 | €713.00 |
| The level of FIS payment will continue to be based on 60% of the shortfall between net weekly family income and the applicable weekly family threshold. | ||
Carers
The name of the Respite Care Grant will be changed to the Carer’s Support Grant to better reflect how it is used by recipients. The grant will increase by €325 to €1,700 per year for each person being cared for (June 2016). This will benefit 86,000 carers.
Carer’s Allowance will be paid for 12 weeks (currently 6 weeks) after the death of the person being cared for (January 2016).
Issued on: 30/10/2015