john o'mahony budget update 2013

• In themeans test, thefirst€36,000 (single),€72,000 (couple)ofassets are disregarded. On the balance only the income actuallyearnedwillbecounted.

• A €1.50 chArge per prescription item applies to medicalcardholders(max€19.50permonthperfamily).Itdoesnotapplytothoseonthelong-termillnessscheme.

• Drug refunD: Anyfamilycangetarefundonthecostofprescribeddrugsusedinanymonthinexcessof€144providedthedrugisonthegovernmentlist.

• nursing home support: Underthe“FairDeal”patientsseekinga place in either a Private or a PublicNursingHomenowhave thesameassessmentofneedandthesamemeans-testforpayment.Thepatientwillbeliabletopaytowardsthecostofcare:• 80% of assessable income (i.e. after deduction of tax, PRSI,mortgage/rentandout-of-pocketmedicalexpenses)

• plus5%(risingto7.5%during2013)ofthevalueofanyassets,inexcessofadisregardof€36,000.

Aspouseisassessedwithhalfofthecouple’sjointincomeandassets.TheHSEcanassessassetstransferredinthepast5years.ThebalanceofthecostwillbemetbytheState.

If the assets are in property, the contribution canbedeferreduntilsettlementoftheperson’sestateandwillnotbecollectedduringthelifetimeofasurvivingspouseoradisabledchild.

• home cAre pAcKAgecanfundacareplaninthehome,wherecareisassessedasnecessaryeitherondischargefromhospital,orbythePublicHealthNursetokeepapersonoutofinstitutionalcare.

• cArers AllowAnce: A person who is living with, (or close bywithadirectcommunicationsystem),andgivingfull-timecaretoachildonDomiciliaryCareAllowance,ortoanypersonaged16oroverrequiringfull-timecare,canapplyforameans-testedweeklyCarersAllowanceof€204(€239ifcareris66orover)plusanannual€1,375RespiteGrant.

• A cArers Benefit of€205basedonyourSocialInsurancecanbeclaimed for short-term absences fromwork (up to 24months) forcaring responsibilities. It is available to all insurance classes exceptSandJ.

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HOUSING• DeBt proBlems If you are having difficulty keeping up withpayments it is vital that you immediately inform those you owe(utilities,banks,etc.)andseekadvice.

• money ADvice & BuDgeting service (mABs) offers free,confidential and independent service for people in debt. You canarrange an appointment at a local office, ring their helpline at0761072000oremailhelpline@mabs.ie

• rent & mortgAge support A supplement towards mortgage interest or rent may be payablewhereneitheryounoryourspouseisworkingfull-time(over29hoursperweek),subjecttoceilings,andameanstest(seebelow),providedyoumeetthefollowingeligibilityrequirements:rent supplement eligibility • Already renting (or in homeless accommodation) for at least sixmonths,orontheCouncil’shousingneedslist.

• OtherwiseyoumustbefirstassessedbytheCouncilasinhousingneed.

mortgage interest supplement• You have complied with an alternative repayment arrangementwithyourlenderforacumulativeperiodof12monthsbeforetheapplication.

• Onlythatpartoftheloanusedforthepurposeofessentialworkonyourhome,canbesupported.

• rent AccommoDAtion scheme YoucanqualifyforRASifyouareinneedofhousingandhavebeengetting Rent Supplement (in general for a period of 18months ormore).UnderRAS,theCouncilentersintoalong-termcontractwithaPrivateLandlordandyoupayanincome-relatedrent.

• Better energy homes schemeprovidesgrantstohomeownersfor:insulationofattic(€200),cavitywall(€250),internalwall(€1,800(detached),€1,350(semiorend-of-terrace),€900(apartment(any)ormid-terrace), external wall (€3,600 (detached), €2,700 (semi orend-of-terrace), €1,800 (apartment (any) or mid-terrace); heatercontrol with boiler upgrade (€560); heating controls upgradeonly (€400); solarheating (€800).Energysavingsofup to50%canbeachieved.

You canapplyonline athttp://www.seai.ie/Grants/Better_energy_homes/orrequestanapplicationformbycontacting1850927000.

OPTIONS FOR JOBSEEKERS• BAcK to worK enterprise AllowAnce can be claimed by apersonwhohasbeenunemployedoronSicknessbenefit forat least12months,whenyoustartabusiness.ItallowsyouretainpartofyourSocialWelfarepayments,taxfree,for2years(100%,75%).

• seeD cApitAl scheme: Ifyoustartupandwork full-time inyourown company, you can claim back the income tax you paid in theprevious six years to invest equity into the company (subscribed asshares).NewcompaniesgetrelieffromCorporateTaxforthefirstthreeyearsofupto€5,000peremployee(max€40,000TaxCredit).

• JoBBriDge: Offersaninternshipof6-9monthstopersonswhohavebeensigningonasavailabletoworkandgettingapaymentorcreditsforatleast3months.Participantswillreceive€50/weekontopoftheirwelfare.Seewww.jobbridge.ie

• springBoArD: Offers free part-time certificate, degree or post-graduatecourses in InstitutesofEducationtothosesigningonatthetimeofstarting,andallowsretentionofwelfarepayments.Seewww.springboardcourses.ie

• community employment: Offersupto20hoursworkperweekfor12monthstopeopleaged25oroverwhohavebeenonSocialWelfareforover12monthsandhaveworkednomorethan30daysintheyear.Theallowancepaid€208,is€20overSocialWelfare.

• BAcK to eDucAtion AllowAnce (from Department of SocialProtection) or aVTOSAllowance (VEC) if youwereon socialwelfare/maderedundantandarenowundertakingafull-timecourseleadingtoarecognisedcertificateatSecond,ThirdorPostgraduatelevel.

• thirD level grAnts are available for full-time undergraduatecourses from SUSI (Student Universal Support Ireland, www.studentfinance.ie).Youmaybeentitledtoafullgrantand/orexemptionfrom the Student Contribution if yourparents’ gross income is belowcertainthresholds.(SeealsoCollegeTaxReliefsunderTaxation.)

JOHN O’MaHONy TDconstituency office:

D’Alton street, claremorris co mayo. tel: (094) 93 73560 fax: (094) 93 73379 text: 086 3268041 Dáil: (01) 618 3706 email: john.omahony@oir.ie web: www.johnomahony.ie

facebook.com/john.omahonytd twitter.com/JohnomahonytD

JOHN O’MaHONy TDconstituency office: D’Alton street, claremorris , co mayo. tel: (094) 93 73560 fax: (094) 93 73379 text: 086 3268041Dáil: (01) 618 3706 email: john.omahony@oir.ie web www.johnomahony.ie facebook.com/john.omahonytd twitter.com/omahonytD

BUDGET UPDaTE 2013 TaXaTION

SOCIaL WELFaREHEaLTHHOUSINGJOBSEEKERS

HEaLTH contd.

• universAl sociAl chArgeappliestogrossincome,fromwhateversource(excludingonlySocialWelfarePayments) —2%upto€10,036(€193perweek)—4%onthenext€5,979(next€115perweek)—7%ontheremainder

Anexemptionappliestopersonswhosetotalincomeisunder€10,036(€193perweek).Theself-employedpay10%onincomeover€100,000.

• pAy relAteD sociAl insurAnce (prsi) of 4% now applies tobothworkersand the self-employed,withno ceiling.Allworkersareexempt from Social Insurance if they earn less than €352 perweek.Theminimumcontributionbyaself-employedpersonis€500peryear.From2014PRSIwillalsoapplytounearnedincome.

• Dirt tAx:Retentiontaxis33%forordinarydepositaccounts,36%onlifeassuranceorinvestmentaccounts.

• cApitAl Acquisitions tAx: Giftsorinheritancebeara33%taxonthemarketvalueoftheassetsreceivedinexcessofcertainthresholds,whichvaryaccordingtoyourrelationshipwiththegiver.

relationship to giver exempt threshold 2013 A.Son/Daughter €225,000 B.Grandchild/Brother/Sister/Niece/Nephew/Parent €30,150 RelationshipotherthanGroupAorB €15,075

• stAmp Duty:Transfersof residentialpropertywillpay1%upto€1million,andto2%onanyexcessoverthat.

• locAl property tAx,replacingtheHouseholdCharge,isappliedatarateof0.18%upto€1mand0.25%ofthevalueinexcessof€1mofthemarketvalueofaresidentialpropertyon1stMay2013.Thisvalue,whichisself-assessed,willremainthebasisforthecalculationforthenext4years.Thetaxiscalculatedatthemidpointofthebandinwhichyourhousefalls.

in 2013 in 2014 Upto€100,000 €45 Upto€100,000 €90 €100,001-150,000 €112 €100,001-€150,000 €225 Valuesgoupinbandsof€50,000adding€90tothetaxdueeachtime.In2013,onlyhalfthefullrateneedbepaid(dueon1stJuly).Thetaxappliestorentedproperty(includingsocialhousing)andtheownerislegallyresponsibletopay.Thesecond-hometaxof€200willapplyforthelasttimein2013.Newhousespurchasedinthenext4yearswillbeexemptuntil2017.Certaindeferraloptionsareavailabletohouseholdsonverylowincomes.

JOHN O’MaHONy TD constituency office: D’Alton street, claremorris co mayo. tel: (094) 93 73560 fax: (094) 93 73379 text: 086 3268041 Dáil: (01) 618 3706 email: john.omahony@oir.ie web www.johnomahony.ie facebook.com/john.omahonytd twitter.com/JohnomahonytD

TaXaTION• Therewerenoincreasesto income tAx rAtes, BAnDs or creDitsinBudget2013.stAnDArD rAte cut-off income 2013:Single/Widowed €32,800OneParentFamily €36,800Married(oneincome) €41,800Married(twoincomes) €65,600Separated/divorced spouses may elect to be taxed jointly subject tocertaincriteria.

tAx creDits 2013SinglePerson €1,650 Age(65)Allowance(each)€245MarriedCouple €3,300 IncapacitatedChild €3,300Widowed €2,190 HomecaringSpouse €810OneParentFamily €3,300 DependentRelative €70PAYEAllowance(each) €1,650

• Age exemption:Personsaged65oroverareexempt from incometax if their gross incomes from all sources is under €18,000 (single),€36,000(married).

• tAx reliefs AnD creDits:• tax relief on pensions:Acertainportionofgrossearningscanbeputintoapensiontax-free.Itisupto15%(under30years)risinginstepsto40%(60yearsorover)andisallowableatthemarginalrateof tax (41%).For thenext3yearsapersonmaywithdraw30%ofAVCs,buttheywillbetaxedatthemarginalrateoftax.

• rent payments bytenantstoprivatelandlordsisbeingphasedoutbut tenantswhohavebeen rentingsincebefore7thDec2010stillqualify.

• All unreimbursed medical expenses (including Nursing Homeexpenses);Maternitycare;APsychologicalAssessmentandSpeechTherapyforchildren.

• relief on private health insuranceisnowgrantedatsourceanddeductedfromyourpremiumbytheinsurer.

• college fees (including Tuition Fee and Student Contribution)of up to €7,500 for each student.Thefirst €2,500of each claim isdisregarded (i.e. for parents paying only the Student Contributionof€2,500,reliefonlyappliesforthesecondandsubsequentchildincollege).

• mortgage interest reliefhasbeenphasedoutandwillnotapplytonewloansfromJan2013.Loanstakenoutbefore31Dec2012continuetoqualifyforrelieffortheremainderoftheirapprovedperiod.

TaXaTION contd. SOCIaL WELFaRE contd.

(aged66orover)(aged66orover)

SOCIaL WELFaRE• The BAsic sociAl welfAre rAtes fromJanuary2013are:

Adult Adult DependentContributoryOAP(FullRate) €230.30 €206.30NonContributoryOAP €219.00 €144.70ContributoryWidows-under66 €193.50 —ContributoryWidows-66orover €230.30 —InvalidityPension €193.50 €138.10SupplementaryWelfare €186.00 €124.80AllOtherPayments €188.00 €124.80LivingAloneAllowance €7.70Over80Allowance €10.00

• chilD Benefit is paid for all children (€130 month for the firstthree,€140others)up to their16thbirthday,or18thbirthday if infull-timeeducationorwithadisability.Asinglerateof€130willapplyfrom2014onwards.

• fAmily income supplement: Acoupleorasingleparentonlowpay,whowork for at least 19hoursperweek combined (includingjob-sharers)cangetasupplementfortheirchildren.

• DomiciliAry cAre AllowAnce of €309.50 permonth and anannualrespitegrantof€1,375uptotheir16thbirthdayforchildrenwithadisabilitywhorequireconsiderableextracare.

• free school yeAr for one year is available to any child agedbetween 3 years and 3 months and 4 years and 6 months on 1stSeptembercoveringeither:

—Playschoolfor3hoursdailyfor38weeks,or—Childcarefor2hours15minutesdailyfor50weeks.

• fuel scheme: A Fuel allowance of €20 / week is payable for 26weeksifyouareonlong-termSocialWelfareandlivingalone(oronlywithdependentsoranotherpersononlong-termsocialwelfare).

• householD Benefits pAcKAge: Ifyouare66oroveryoumaybeeligibleforthefollowingconcessionsalongwithyourpension:• ESBorNaturalGasupto€420• Freetelevisionlicence;and• TelephoneAllowanceof€114/year(whichcanbeusedformobilephones).

Ifyouareaged70orover,youcanqualifyforallofthesefreeschemesregardlessofyourincome.

• supplementAry welfAre: A Department of Social Protectionrepresentative(formerlyknownasacommunitywelfareofficer)mayhelpoutwiththefollowing:• A weekly payment if you are sick or unemployed and have notreceivedSocialWelfare.

• Aonce-offpaymentforunforeseenneeds.

• A single person under 25 living at home who has left school canapplyforJoBseeKer’s AllowAnce butwillbeassessedaccordingto their parents’ income. Payment to new claimants under 25 ofJobseeker’sAllowanceiscappedat€100ifyouareunder22,€144ifaged22-24,unlessyouareintraining,onBacktoEducationAllowanceorcomingoffJobSeeker’sBenefit.

• JoBseeKer’s Benefit,fromJanuary2013,canonlybeclaimedfor9months(6monthsforthosewithlessthan260paidcontributions).

HEaLTH• primAry meDicAl cover: A Medical Card entitles you to allhealthservicesfree.AGPVisitCardcoversthecostofvisitstothedoctorforyourfamily.Themeanstestforthesecardsisbasedonnetincome.The cards will be granted if your remaining weekly income afterthesedeductionsdoesnotexceedthefollowingguidelinefor2013:

meDicAl cArD gp only under 66 66 and over under 66 66 and over•Singlelivingalone €184.00 €201.50 €276.00 €302.00•Singlelivingwithfamily €164.00 €173.50 €246.00 €260.00•Marriedcouple(orsingleparent) €266.50 €298.00 €400.00 €447.00

• persons AgeD 70+ quAlify for A meDicAl cArD if yourgrossweekly income is less than€600perweek (single),or €1,200(couple). If you exceed this, a GP only card will be granted up to€700(s)€1,400(c).• Onceeitherspousequalifiesat70,bothgetcover.• A surviving partner aged over 70 will be allowed to keep theirmedicalcardforthreeyears.