Dáil Éireann Debate, Thursday - 22 September 2022
121. Deputy Cathal Crowe asked the Minister for Finance his plans to introduce new personal taxation treatment to encourage stay at home parents to enter part-time employment in strategic areas (details supplied);; and if he will make a statement on the matter. [46101/22]
Amharc ar fhreagraWith regard to the Deputy’s proposal to introduce new personal taxation treatment to encourage stay at home parents to enter part-time employment in strategic areas, I understand the rationale behind the Deputy's question. At the same time, the sectors mentioned by the Deputy are not the only sectors that are currently facing recruitment challenges in what is fortunately a very buoyant labour market. As such, it would in my view be potentially inequitable to single out certain sectors for particular treatment through the personal tax system.
The Home Carer Tax Credit can be claimed by couples who are married or in a civil partnership and have elected to be jointly assessed to tax, where either spouse or civil partner, the ‘home carer’, cares for one or more dependent persons. For 2022, where the home carer earns less than €7,200 the full credit of €1,600 can be claimed. Where the individual earns more than €7,200 but less than €10,400, a reduced tax credit can be claimed. The credit cannot be claimed where the home carer’s income is €10,400 or greater. As such, the home carer can undertake part-time employment, subject to the above income thresholds, and continue to avail of the Home Carer Tax Credit.
This credit was introduced in the context of the move towards individualisation, in recognition of the choices made by families where one spouse stays at home to care for children or the elderly.
The Programme for Government states that “the Home Carer Tax Credit is an effective mechanism to support couples where one decides to home parent rather than working or availing of childcare subsidies and also where one parent stays at home to meet other caring needs. It will be increased to support stay-at-home parents as we increase subsidies for childcare”.
Finally, with less than a week to go to the Budget, it would be inappropriate for me to comment further on any matter that may or may not be the focus of budgetary decisions.
