Dáil Éireann Debate, Wednesday - 19 December 2018
121. Deputy Brendan Griffin asked the Minister for Finance if consideration will be given to the introduction of tax relief on accommodation costs for third level students and their families; and if he will make a statement on the matter. [53624/18]
Amharc ar fhreagraI have no plans at present to propose the reintroduction of rent relief generally or specifically in relation to third-level students. As the Deputy may be aware, tax relief in respect of rent paid, was abolished for new applicants in Budget 2011. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of this independent commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation. Furthermore, I must be mindful of the public finances and the many demands on the Exchequer. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
While there is no specific provision for tax relief in relation to the living costs associated with attending college, the rent-a-room scheme supports the accommodation need of third level students and others by providing significant levels of relief to the providers of accommodation within their own home to persons on both a seven day a week and "digs" basis.
In addition, section 473A of the Taxes Consolidation Act 1997 provides for tax relief at the standard rate of income tax (20%) in respect of qualifying fees paid by an individual for a third level education course, subject to the terms and conditions set out in that section. Qualifying fees mean tuition fees in respect of an approved course at an approved college, reduced by the amount of the "student contribution" which, in the case of a full-time course, is currently €3,000. Full details of the relief, including the terms and 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.
Finally, as with all such reliefs, my Department regularly reviews tax expenditure measures. Proposals for change are dealt with in the context of the annual Budget and Finance Bill process.
