To follow are the main announcements in Minister Brian Lenihans Budget announced on the 9th December 2009;

- Water Charges for homes on the way in the future once useage goes above a certain allocation.

- Tax treatment of non resident individuals who hold Irish domicile with a worldwide income in excess of 1 million and Irish based assets in excess of 5 million will have to pay a "domicile levy" of €200,000 per annum.

- Carbon tax of €15 per tonne.  Petrol from midnight tonight up 4.2 cent per litre and diesel up 4.9 cent per litre. Home heating from next May.

- Universal Social Contribution to replace PRSI and the Income Levy.

- Savings of 1 Billion on the Public Sector paybill (including hospital consultants etc). Permanent reduction in salary as follows;

                   1. 8% for those earning between €125,000 to €165,000

                   2. 12% for those earning between €165,000 to €200,000

                   3. 15% for those earning €200,000 +

                   4. Those earning under €125,000 as follows : 5% on first €30,000, 7.5% on next €40,000 and 10% on next €55,000

                   5. Ministers and Secretary Generals: 15% Reduction

                   6. Taoiseach Salary: 20% Reduction

                   7. Members of the Dail will be reduced in line with points 1 - 4.

                   8. Reform of Public Sector pension arrangements announced to be more in line with private sector arrangements. 

                       Any changes will not be enforced on existing recipients.  New entrants will have to work to age 66 and the final pension will be

                       based on your average earnings over your career not your final salary.

- Social Welfare

                  1. Job Seekers to be reduced to €100 and €150 for younger people (under between 20 and 22 and 22 and 24) without children

                     and those who reject work or schemes.  For new applicants only.

                  1A. Overall cut of 4.1% for those receiving job seekers. (to be confirmed- unclear).

                  2. State Pension unchanged. 

                  3. Lower and Higher Rates of Childrens Allowance to be reduced by €16 per month.  Social Welfare recipients will be

                     compensated through increases for dependant children. 

- An efficiency review of Local Authorities announced.

- Credit Review System on Business Lending; A system whereby small businesses can appeal a banks decision no to lend to them.  Another right to appeal will exist when a decision has not been given within 15 days or the conditions attached to a facility or its price are thought to be to onerous. There will be a fee which is refundable by the bank if the applicant is succesful. The credit review system will also review the policies and practices of the banks in relation to all business sectors paying particular attention to sectors such as retail, including car dealers, tourism and agriculture. 

- Introduction of National Solidarity Bond for small investors announced. A savings scheme with the Government.

- Employers Prsi Exemption Scheme for people coming off the live regiser.

- Extended mortgage interest relief announced for certain mortgage holders. 

- Reduction in Excise Duties; 12c on a pint of beer and cider & 14c on spirits and wine.  Will be reversed if not passed on to the Customer.

- Standard rate of Vat brought back to 21% from 21.5%.

- Car Scrappage Scheme in 2010; €1,500 reduction in VRT when a car of 10 years and older is scrapped to buy a new car.

- Corporation Tax Rate unchanged and is "here to stay"!

- Corporate start up scheme extended to companies starting in 2010. (exemptions from corporation taxes)

- Scheme of accelerated capital allowances for energy efficient equipment extended. Cooling and catering equipment now included.

- Senior Citizens visiting from abroad will receive discounted bus and rail fares.

- Development of the "Kennedy" homestead in the South East announced as a tourist attraction.

- Medical Card Holders will pay a charge of 50 cent per item on a prescription.

Analysis;

1. Widows / Widowers Contributory Pension (under 66) will drop from €209.80 to €201.50 per week.

2. Widow/ Widowers Non Contributory Pension will drop from €204.30 to €196.00.

3. Invalidity Pension - Personal Rate (under 65) will drop from €209.80 to €201.50 per week.

4. Invalidity Pension - Personal & Adult Dependant (under 66) will drop from €359.50 to €345.30 per week.

5. Illness Benefit - Personal Rate will drop from €204.30 to €196.00 per week.

6. Child benefit - First and second child will drop from €166 per month to €150 per month.  For third and subsequent children from €203 to €187 per month.

7. Job Seekers Allowance - Aged 20 - 21 will drop from €204.30 to €100.00 per week. Aged 22 - 24 wil drop from €204.30 to €150.00 per week. Over 25 will drop from €204.30 to €196.00 per week.  Where a person aged 18 to 24 has a dependant child the basic personal rate of €196 will apply.

Brian Lenihan : "Our plan is working we have turned a corner". 

Richard Bruton : "A jobless and joyless budget".

Whilst every care has been taken to provide accurate information no liability is accepted for any reliance placed on this information. Professional advice should be sought on all taxation matters.