Dáil Éireann Debate, Tuesday - 18 October 2022
764. Deputy Michael Creed asked the Minister for Health if he will clarify the situation regarding beneficiaries of the nursing home support scheme; the way in which the balance of nursing home fees under the scheme are eligible for tax relief; and if he will make a statement on the matter. [51499/22]
View answerThe Nursing Home Support Scheme (NHSS), commonly referred to as 'Fair Deal', is a system of financial support for people who require long-term residential care. The primary legislation underpinning the NHSS is the Nursing Home Support Scheme Act 2009. Participants in the NHSS contribute to the cost of their care according to their means while the State pays the balance of the cost. The Scheme aims to ensure that long-term nursing home care is accessible and affordable for everyone, and that people are cared for in the most appropriate settings.Participants within the NHSS contribute up to 80% of their income (40% if part of a couple) and 7.5% per annum of the value of their assets (3.75% if part of a couple). The first €36,000 (€72,000 if part of a couple) is excluded from assessment. The value of a person's principal residence is only assessed for contributions for their first three years on the scheme.Provisions exist in the legislation to allow certain deductions from the financial assessment when calculating an applicant’s contribution to care. The definition of ‘Allowable Deduction’ in relation to income as per the legislation includes the following:(i) income tax required by law to be deducted or paid from income(ii) social insurance contributions(iii) levies required by law to be paid(iv) payments in respect of interest on monies borrowed for the purchase, repair or improvement of the principal private residence of the person (v) health expenses to which Section 469 of Taxes Consolidation Act 1997 applies(vi) payments in respect of the maintenance of a child, a spouse or a former spouse under a separation agreement less the amount of any relief from income tax which may be claimed in respect of such payments(The above should be read in conjunction with the Legislation and the National Guidelines. The full text of the legislation can be accessed by following this link: www.irishstatutebook.ie/eli/2009/act/15/enacted/en/print.html).
A range of health expenses can be deducted by the HSE when calculating the weekly contribution. These expenses must meet Revenue guidelines on qualifying health expenses. The full list of allowable expenses is available in the Revenue Commissioners “Tax and Duty Manual – Health Qualifying Expenses” which is available at the following link: www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/health-and-age/health-expenses/what-are-qualifying-expenses.aspx. The Revenue Commissioners is responsible for the collection, oversight and management of income tax and specific queries in relation to taxation and tax reliefs should be addressed directly to Revenue or made in consultation with an accountant/tax professional.
