Dáil Éireann Debate, Wednesday - 21 April 2021
1268. Deputy Mattie McGrath asked the Minister for Further and Higher Education, Research, Innovation and Science his views on whether it is fair that SUSI recipients of the Covid student support payment are specifically exempt from tax however the non-SUSI payment is considered as income for tax purposes for non-SUSI recipients. [18319/21]
View answer1269. Deputy Mattie McGrath asked the Minister for Further and Higher Education, Research, Innovation and Science if he will provide further clarification on a matter (details supplied); the students classified as the majority; and the basis on which a student is considered tax liable. [18320/21]
View answerI propose to take Questions Nos. 1268 and 1269 together.
In recognition of the challenges facing full time third level students, financial assistance will be provided in academic year 20/21 to all students who avail of SUSI grants and to all EU full-time undergraduate and postgraduate students attending publicly funded Higher Education Institutions in the state.
The scheme will ensure students;
- Who avail of the SUSI grant will receive €250 top-up in their grant;
- Students who do not avail of the grant but attend publicly funded Higher Education Institutions in the state can reduce by €250 any outstanding contribution fee payments or receive a €250 credit note for their institution;
- In a small number of cases, alternative arrangements will be made for the payment of the monies to students.
The scheme will provide financial assistance to all eligible full time third level students in recognition of the significant upheaval they have experienced due to the COVID-19 pandemic and the options are designed to ensure students who are not in receipt of SUSI will benefit from the measure. The credit will be distributed to students before the end of the 2020/2021 academic year.
SUSI payments, including this once-off additional €250 payment, are specifically exempt from tax.
While the operation of support measures for third level students is a function of this department, tax matters are a function of the Revenue Commissioners. In this regard department officials sought the advice of the Revenue Commissioners who advised that the provision of €250 to non SUSI eligible students is income for tax purposes but would not give rise to a tax liability for the majority of full-time students.
Individual students are advised to contact the Revenue Commissioners directly if they have any queries on their tax requirements.
