Inflation Proof

After a tough financial year for the majority of Irish households, “budget” was definitely a feared word.

However, Budget 2023 was not all bad news for the taxpayer. It was presented to Dáil Éireann on Tuesday, 27th of September 2022 with some positive news regarding childcare, housing and public transport to name but a few key highlights.

What does the Budget 2023 mean to me?

The government delivered a range of measures to help those struggling with inflation that has occurred due to rising conflicts with Ukraine and Russia and a global pandemic.

Budget 2023 involves a €6.7 billion package, including a €1.05 billion tax package and €5.65 billion of expenditure. The Budget 2023 will provide relief to the average worker in the hope of cooling this year’s inflation burn. Some of the main Budget 2023 outcomes are as follows:

1. Childcare/ Education in Budget 2023

Free schoolbooks will be provided to all primary school children and a 25 per cent reduction in childcare.

Third-level fees will also be cut by €1,000 this year, with a once off double payment for SUSI grant recipients also in Budget 2023.

Also, a reduction of 25 per cent in the weekly fee of those availing of the national childcare scheme is to be implemented. Funding for additional SNAs and teachers is to be increased. The student to teacher ratio will reduce for the third year in a row. Furthermore, €100 million will be provided for schools and school transport providers.

In November, a double child benefit payment will be made.


2. Energy

All households will receive a €600 electricity bill credit which will be paid in three instalments of €200 each.


3. Tax

Personal tax credit increase by €75 and an income tax package of €1.1 billion will increase lower tax rate band to €40,000.

USC band increased to €22,920 in-line with minimum wage increase.

In regards to inheritance tax, it is now confirmed that there will be no increase on inheritance tax or tax on savings.

The USC band increased to €22,920 in-line with minimum wage increase.

The tax-free bonus amount an employer can give an employee will increase from €500 to €1,000 annually.


4. Housing

The Help to Buy Scheme for first time buyers will be extended until the end of 2024.

Tax credits will be provided to support renters worth €500 per year for renters paying rent on primary residence from 2022.


5. VAT

A 9 per cent VAT reduction on energy is to be extended until February 28th, 2023.

Also, zero VAT rate is to be applied to hormone and nicotine replacement products and period products.


6. Transport

The 20 per cent reduction in public transport fares will continue until the end of 2023.

Fuel excise reductions – 21c off petrol and 16c off diesel.


6. Budget 2023: Healthcare

Hospital in-patient charges will be removed for all public patients.

Free GP care to be extended to more than 400,000 people.

What Does the Financial Planning Review Cover?

We review all your pensions and calculate what your retirement income will look like. Based on that analysis, we can recommend a course of action so you can maximise your benefits. Very few employees we talk to have entered full-time employment from day one and stayed with the same employer for their whole working life. Employees call us worried about old pensions, career breaks, job sharing, working abroad, etc. Things are never straightforward until we produce your free report. This is a fantastic no obligation review of your financial wellbeing.

We find that often employees do not fully understand all the fields on their payslip. This can lead to problems, such as not being on the right salary scale point for public sector employees, or not using all your tax breaks correctly.

Whether you need to protect you family’s future, mortgage or plan for inheritance taxes, it is key to have the right insurance policy for your needs. Furthermore, as part of the report, we will search the market for the best prices out there.

If you have more than 3-6 months pay in your bank account (your emergency fund), you are faced with questions how to use your money wisely. Should you increase your pension contributions, open a savings account for your children’s education, invest in bonds, etc.? The MadeSimple report makes these questions much easier to answer taking into account your tax position and financial objectives.

Step 1

You – Complete a short online application form

Step 2

We – Generate your personal report that outlines your current benefits.

Step 3

Together – We schedule a review online (we use Zoom, or a platform you may suggest) or over the phone to discuss what options are available to you.

Start Now! Book Your Review

After we complete the review, many employees are delighted to have their options regarding pension planning, salary protection, life protection, savings and investments explained to them so clearly. Not only that, but we can also set up policies for you all online in a very fast and efficient manner. 

Get your complimentary, personalised review today! You have nothing to lose!

Kieran Bennett
Kieran BennettFinancial Advisor, MadeSimple