With just over two weeks remaining until the government unveils the total financial package for Budget 2025, several cost-of-living measures are expected to be included. Two groups are likely to benefit from a €750 cash boost.
Ireland Cost of Living: Two Groups Set to Qualify for €750 Cash 2025
Key Measures
While numerous cost-of-living initiatives are under consideration, two key proposals have attracted significant attention:
- Youth Tax Credit
- Increase in the Existing Rent Tax Credit
Youth Tax Credit
Peter Burke, the Minister for Enterprise, has proposed that Budget 2025 include a ‘Youth Tax Credit’ worth €750 for individuals under 25. This initiative aims to encourage young talent to remain in Ireland and is estimated to cost €100 million annually.
Details and Rationale:
- Economic Growth: Ireland’s economy is expanding rapidly, leading to higher demand for work permits.
- Graduate Retention: This credit seeks to keep more graduates working within the Irish economy.
- Incentive for Young Talent: A substantial tax credit for those under 25 would be a solid incentive to retain critical skills in the country.
- Investment in Education: Significant funding has been directed toward higher education, including establishing new technical universities.
Peter Burke’s Remarks:
- “The Irish economy is growing at a fast pace. We have never seen such a demand for work permits across all sectors.”
- “A substantial tax credit for those under 25 would act as a significant incentive to retain talent in our economy.”
- “The more graduates we retain within our economy, the stronger our workforce becomes.”
- “A youth tax credit would help us keep our young talent and ensure that we remain as competitive as possible.”
- “This initiative will contribute to the growth rate of our economy by encouraging highly skilled workers to stay.”
Rent Tax Credit
The Rent Tax Credit currently provides a maximum of €750 for an individual or €1,500 for a jointly assessed couple. However, reports suggest that Budget 2025 will likely increase the individual credit to €1,000.
Credit Details:
- 2022 and 2023:
- €500 for individuals
- €1,000 for couples jointly assessed for tax
- 2024:
- €750 for individuals
- €1,500 for couples
- 2025:
- Proposed increase to €1,000 for individuals
Eligible Rent Payments:
You can claim this credit for rent payments on:
- Your primary home: The place where you mainly reside.
- A second home: Used for work or studies within Ireland.
- Child’s accommodation: A child under 23 enrolled in an approved course.
Ineligible Rent Payments:
You cannot claim rent credit if you receive housing support, such as:
- Housing Assistance Payment (HAP)
- Rent Supplement
- Rental Accommodation Scheme (RAS)
- Cost rental housing
You cannot claim the rent tax credit even if you make additional payments beyond the housing support.
Summary Table:
Measure |
Individual Credit |
Couple Credit |
Year |
|---|---|---|---|
Youth Tax Credit |
€750 |
N/A |
2025 |
Rent Tax Credit (2022) |
€500 |
€1,000 |
2022 |
Rent Tax Credit (2023) |
€500 |
€1,000 |
2023 |
Rent Tax Credit (2024) |
€750 |
€1,500 |
2024 |
Rent Tax Credit (2025) |
€1,000 (proposed) |
N/A |
2025 |
Conclusion
Budget 2025 aims to address the cost of living with impactful measures such as the Youth Tax Credit and an increase in the Rent Tax Credit. These proposals are designed to keep young talent in the country and provide financial relief to renters, both of which are vital for sustaining Ireland’s economic growth and stability.
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