SIMON HARRIS IS pushing for the rent tax credit to be doubled from €500 to €1000 in this year’s Budget and for a discrepancy in accessing the credit to be tweaked so that more students and their parents can benefit from it.
Speaking to reporters in Dublin today, Minister for Higher Education Simon Harris highlighted that currently some students who are in digs are not receiving the full benefit of the rent tax credit.
He said he is pushing to have this fixed in the Budget.
As it stands, students or their parents can avail of the tax credit if the student lives in purpose built student accommodation or in college campus accommodation.
However, for students who are living in digs as part of the rent a room scheme, their parents income is not considered when calculating the level of tax credit they can receive which means the student’s income alone may not be enough to benefit from the tax credit.
Harris said he wants to see this changed so that parent’s income is also included in the calculation where the student is living in digs.
“In many cases, people will know it might well be the parent assisting, it certainly would be the parent who could benefit, in terms of the tax credit,” Harris said.
On increasing the tax credit, Harris said: “Rent is expensive in this country. And I would echo the calls of the Minister for Housing that he’d like to see an increase in the rent tax credit, I’d ideally like to see it doubled if possible.”
Elsewhere on Budget matters, Harris said it is “astonishing” that some parties are not in favour of tax cuts in the midst of a cost of living crisis.
“I am beyond perplexed that there are some parties in the midst of the cost of living crisis, the inflationary crisis, the likes of which we haven’t seen since the 70s, that don’t believe people should get any of their own money back in the Budget. I just find that astonishing. I think my constituents would find that astonishing.
“People are really struggling to make ends meet,” Harris said.
Harris seemed to be referring to comments made by Social Democrats’ leader Holly Cairns last week when she said the SocDems are not in favour of reducing the Universal Social Charge (USC) at this time.
He signalled today that he is in favour of a cut to USC and a reexamination of existing tax bands.
This follows comments by Finance Minister Michael McGrath and Tánaiste Micheál Martin who both suggested they are in favour of cutting USC.
The Business Post reported this weekend that 7 out of 10 voters want to see the tax cut in the Budget.
Harris said: “A really practical way government can help people with the cost of living is to give them a little bit of their own money back. And I think the USC needs to be looked at in that context. And of course, tax bands need to be looked at too.
“But the USC is placing a huge, huge burden on people as well. I think all those options need to be on the table when we look at a tax package in the round.”
Last week, The Journal took a look at the controversial history of the USC.
It is estimated to raise €5.2 billion for the public purse this year.
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