LAST UPDATE | 10 Jun

STAMP DUTY RELIEF for first-time-buyers is not on the cards in this year’s budget, according to Tánaiste Simon Harris. 

Speaking to The Journal’s The Candidate podcast, Harris ruled out such a move, despite the Taoiseach saying in April it was worthy of consideration. 

Stamp duty applies to buyers when they purchase a home at a rate of 1% on the first €1 million of the home’s purchase price, rising to 2% from €1 million to €1.5 million, and 6% on any amount thereafter. 

First-time buyers were entirely exempt from stamp duty before 8 December 2010, when specific exemptions were abolished to make way for a new and more simple system. 

“There’ll be no changes to stamp duty, and the reason I say that is actually be helpful, because if people like me suggest that there might, then all of a sudden it causes a very significant impact on the housing market, and so that’s not a lever I intend to pull,” he said.

“Let me say this, there are commitments in the programme for government that we will honour, absolutely. So, keeping the first-time-buyers grant, which is currently capped at €30,000 – there’s a commitment to a review of the first-time-buyers grant,” said Harris.

For the Help to Buy (HTB) Scheme, the home’s value cannot exceed €500,000.

Harris said some people have a view that those thresholds should be increased.

The government failed to increase the renters’ tax credit in the budget last year, but the Tánaiste indicated that increasing it this year is under consideration. 

• Listen to our full interview with Simon Harris here or wherever you get your podcasts

When put to the Tánaiste that Fine Gael pledged to increase the credit to €1,500 in its election manifesto, he said: 

“That’s definitely due consideration. Again, decisions will be for the budget, but the renters’ tax credit has an important role to play. We’ve committed to keeping it for the lifetime of the government, and yeah, instinctively I’d like to see it rise. As you know, we have to look at all these things in the round in the budget, but I think it’s an important part of helping people.”

Separately, the Tánaiste reiterated that there will be a significant tax package in this year’s budget. 

“We need a personal income tax package, 100%, because otherwise people end up paying more tax,” he said, stating that people in Ireland pay the higher rate of tax at a much lower entry points than many, many other countries.

“I’m really worried about this. I’m genuinely concerned that there’s too many people working their backsides off, who feel they can only just about get by and not get ahead. And I’ve identified a couple of areas where I think we can make progress,” he said.

Harris said he wants to ensure work pays, and he doesn’t believe the cost-of-living crisis should solely be responded to through social protection means. 

“It’s an important role to play, but I don’t think it’s the only response. I think allowing people to keep some of their own money is one. And then those structural areas, I want to identify areas where we can drive down the costs for our citizens, and childcare being the most obvious one,” he added. 

Childcare fees 

Asked about what is to come in the budget for parents paying for childcare, Harris indicated there will be further fee reductions announced as part of October’s budget, 

Over the next four budgets, he wants childcare fee reforms to be a “real signature project delivered by this government”.

“In my view, we have to do something on fees in the budget. In fairness to [Children's] Minister [Norma] Foley, she announced recently a fee cap for those lower income families. I think most people think it’s still too high, but it shows you how you can begin to make progress,” he said. 

Secondly, this year’s budget will also seek to address the issue of access to childcare, which has been a growing issue for families. He said he has people who would like to open a crèche but the initial costs for a start-up are too high.

“I think that’s a role that state can help with,” he added, adding that over the next four budgets, he wants each budget to have a signature childcare announcement. 

• Listen to our full interview with Simon Harris here or wherever you get your podcasts