Vol. 568 No. 5
279 Ms O'Sullivan asked the Minister for Education and Science if projected income from SSIA is to be included in calculating eligibility for third level grants in future; if the legality of such a proposal has been investigated; and if he will make a statement on the matter. [16760/03]
For the purposes of my Department's maintenance grants schemes, reckonable income means all amounts, with the exception of defined social welfare and health board payments, received or receivable by an individual without reference to his/her residence or domicile, from both Irish and foreign sources, which are liable to Irish income tax, Irish capital gains tax or Irish capital acquisitions tax, or which would be so liable but for exemptions and reliefs contained in Irish legislation. The intent of this definition is to ensure that all types of income will be included in determining a person's income for grant purposes.
For the purposes of determining grant eligibility, all investments must be declared, including deposit accounts, savings certificates, life assurance bonds and other financial instruments where the interest-profit is accumulated and paid out as a lump sum at the end of the investment period. Where income is paid out annually, as happens with a bank deposit account, the amount so paid is required to be included in reckonable income. Where income is not paid out annually but is "rolled-up" and paid out with the original investment at the end of a defined term, the annual amount required to be included in reckonable income is the "rolled-up" income divided by the number of years in the term of the investment. This procedure has been in place for the past ten years.
Given its similarity with "roll-up" savings products, it was deemed appropriate to include, as reckonable income, income from SSIAs on an annual basis. The treatment of the SSIAs in this regard is consistent with the treatment of similar financial products such as post office savings certificates. My Department is satisfied that the approach taken to computing reckonable income for purposes of determining eligibility under the maintenance grant schemes is appropriate.
