Dáil Éireann Debate, Tuesday - 13 June 2023
359. Deputy Mairéad Farrell asked the Minister for Finance the estimated cost to the Exchequer of increasing the current amount of tax relief of €7,000 that can be claimed per person for postgraduate fees, including the student contribution, to €8,000, €9,000 and €10,000, in tabular form; and if he will make a statement on the matter. [27382/23]
View answer360. Deputy Mairéad Farrell asked the Minister for Finance the estimated cost to the Exchequer of allowing tax relief on the first €1,000, €1,500 and €2,000 spent on tuition fees, including the student contribution, for full-time students, in tabular form; and if he will make a statement on the matter. [27383/23]
View answer361. Deputy Mairéad Farrell asked the Minister for Finance the estimated cost to the Exchequer of allowing tax relief on the first €500 and €1,000 of tuition fees, including the student contribution, for part-time students, in tabular form; and if he will make a statement on the matter. [27384/23]
View answerI propose to take Questions Nos. 359 to 361, inclusive, together.
Section 473A of the Taxes Consolidation Act 1997 provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual.
“Qualifying fees” mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”. No other charges and levies qualify for tax relief e.g. administration fees, student centre levy, examination fees, capitation fees. Tuition fees that are, or will be, met directly or indirectly by grant, scholarship, employer contribution or other means are deducted in arriving at the net qualifying fees.
The maximum amount of fees that can qualify for the relief is €7,000 per person, per course, per academic year. Each claim is subject to a single disregard amount each tax year. This amount is taken away from the total qualifying fees for the claim, such that relief can't be received on the disregarded portion. The disregard is currently €3,000 in the case of a full-time student and €1,500 for a part time student. If a claim has been made for more than one student or course, this disregard amount will only be deducted from the claim once.
I am advised by Revenue that it is not possible, based on the available data, to estimate the costs associated with the proposals outlined by the Deputy.
In relation to the question regarding postgraduate fees, Revenue have further advised that data on the existing relief are not captured separately in relation to postgraduate courses only.
In relation to the other questions, Revenue advises that the manner in which the data on the existing relief are currently captured and retained precludes analysis for statistical purposes at this time.
Full details of the existing relief, including the conditions that apply, are set out on the Revenue website at www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/education/tuition-fees-paid-for-third-level-education/index.aspx.
