Issue link: https://maltatoday.uberflip.com/i/885114
2 Pensioners will be receiving an increase in contributory and non- contributory pensions of €2 a week. The measure will affect over 90,000 pensioners for a total of €9 million in outlay. Second-year continuation for tax relief on pensions which in the last budget benefited 22,000 pensioners. This year will see an additional 9,000 beneficiaries. The ceiling for non- taxable pensions is now increased to €13,200. An increase of €200 in the amount of service pensions that are subtracted from the social security pension, which will benefit 4,500 pensioners and costed at €1 million. A grant of €350 will again be paid out to all those aged 75 and over and still living in their properties. A new measure will assist pensioners with missing social security payments. Pensioners who still work beyond pensionable age are still obliged to pay national insurance up until 65. In cases where pensioners, especially women, have missing NI payments and are not taking a full pension, a new measure will now allow pensioners from 65 years of age to compute their pensions as well as on the additional NI payments they submitted after pensionable age. Pensioners younger than 65 years of age who are self- employed or part-time workers will be allowed to pay national insurance at a pro rata 15% rate on net income, and not on the full rate. Continuation of the Government Savings Bonds 62+. Sickness benefit will now be paid to pensioners benefiting from contributory pensions. This was not possible before and targeted widows who were still working and had dependent children under the age of 23. Under the new measure, these widows will be able to claim the sickness benefit. maltatoday, TUESDAY, 10 OCTOBER 2017 Budget 2018 What's in it for you COLA COLA is €1.75 for all, including pensioners and anyone on benefits, while students will still be paid their COLA pro-rata. €1.75 EXTRA DAY LEAVE Oh yes workers, unite and party as one extra day of statutory leave is added as part of Labour's manifesto plegde to remove the 2005 law that removes public holidays when they fall on weekends. There is still no agreement on this matter with the social partners. MINIMUM WAGE Not a specific Budget measure per se but 2018 will be the first year when minimum wage earners will see a €3 increase in weekly wages for those who have already spent a year on minimum wage. TAX REFUND ACROSS THE BOARD Another Labour manifesto pledge, this will be the first tranche of a general tax cut for anyone earning up to €60,000: a cheque of anything between €40 to €68 will be paid out to taxpayers, who will be paid a higher cheque the lower their salary is. The tax cut is being costed at around €10.6 million and will benefit over 200,000 taxpayers. The tax cut will also be paid out to those on minimum wage and those whose salaries do not reach the minimum tax threshold €40-€68 each PENSIONERS SALARY ARREARS Continuation of settlement of dues for police overtime, dock workers, former Malta Electricity Board workers, para-statal corp workers, costed at €11 million. This will affect 6,000 beneficiaries and their heirs. VAT REFUND FOR MOTORISTS Continuation of seven-tranche payment for refunded VAT on cars acquired with incorrectly computed VAT charge. HIGHER VAT EXEMPTION THRESHOLD FOR BUSINESSES VAT exemption threshold for businesses and self-employed has now increased from €14,000 to €20,000. 25 SECOND-TIME BUYER SCHEME While the first-buyer property scheme will once again be extended into the new fiscal year, the government is now introducing a second-home buyer scheme. This means that home-owners who are selling off their first home, and buying a second property, will benefit up to €3,000 in exempted property tax. The acquisition will have to be carried out within two years of the sale of their first home. The scheme is not intended at allowing a second-home buy, but only if a first home is old. The government says the measure is intended at freeing up certain properties that may not be sold, by offering an incentive to free up the housing stock. Two family models are earmarked in this measure: families and other homeowners who are moving up the property ladder, and older homeowners who are planning to downsize their homes after entering pensionable age. EXTENSION OF UCA SCHEME & 2% GOZO PROPERTY TAX The grants for restoration of UCA properties once again is extended, as is the reduced 2% property tax (down from 5%) on properties acquired in Gozo. Elderly residents in government homes will be charged a smaller portion - 60% - of their pensions if they release their social housing properties to the State. The government says that elderly homes' residents who live in rented government housing, do not release the keys of their houses and keep paying the rent on that house. One of the reasons is to allow their children to keep occupying that house. The government will allow such tenants to retain this control on their government properties but will be offering an incentive to those who release the keys to the house so that it can be used once again for social housing. This will be taking 60% instead of 80% of their pension for residing at St Vincent de Paul, and down to 40% for those residing in any private or Church-run home, including PPP homes. The measure will allow such residents to claw back €1,350 to €2,700 in pension incomes. ELDERLY IN HOMES A working group will start devising an Equity Release Facility so that pensioners who are homeowners, can use the value of their property to finance their retirement expenses on a staggered, monthly basis; the property is later released to the paying company, for example, an elderly home operator, upon the death of the owner. EQUITY RELEASE FOR PENSIONERS