While the treatment of married and co-habiting couples under the social welfare code is primarily a matter for the Minister for Social, Community and Family Affairs, I point out to the Deputy that in the Hyland case in 1989 the Supreme Court held that it was unconstitutional for the relevant social welfare provisions to treat a married couple living together less favourably than an unmarried cohabiting couple. I understand that this judgment has been put into effect by treating co-habiting couples in the same way as married couples for social welfare purposes.
In relation to taxation, there are no special income tax allowances for unmarried couples living together. In this context, I point out that tax law follows the general law relating to marriage. Generally, the basis for the current taxation of married couples derives from the Supreme Court decision in Murphy vs. the Attorney General, 1980, which held that it was contrary to the Constitution for a married couple to pay more tax than two single people living together. The tax treatment of unmarried couples who cohabit was unaffected by the Murphy judgment. Each partner is taxed as a single person and each is entitled to the tax credits and standard rate band appropriate to single persons.
As the Deputy will be aware, the issue of the tax treatment of cohabiting couples was examined most recently in the report of the working group examining the treatment of married, co-habiting and one-parent families under the tax and social welfare codes. The group, which was established by the Minister for Social Welfare in May 1997, reported in August 1999. The report is available from the Government Publications Sale Office. The group was sympathetic, in principle, to changes in the tax legislation to address the issues raised relating to cohabiting couples and reported that the options that it set out should be considered further.
In budget 2000 I initiated the process of band widening with a view to establishing progressively a single standard rate income tax band for all individual taxpayers. When this process is complete the position of all couples will be the same with respect to the standard rate tax band.