Govt may introduce tax break for childminders - Harris

The Minister for Finance has said the Government may introduce a tax break for childminders in next month's Budget.

Speaking at the end of an informal gathering of EU Finance Ministers at Dublin Castle, Simon Harris confirmed he was considering the measure as the Coalition moves to finalise the specifics of Budget 2027 due to be announced on Tuesday fortnight.

Senior Coalition figures have also indicated that a signalled reduction in the cost of home heating oil for householders won't be derived from a VAT cut despite the fuel industry advocating such a move.

Mr Harris also re-iterated his opposition to the abolition of stamp duty for first time buyers after the Taoiseach Michael Martin last week said he had a "favourable disposition" towards the idea.

Fianna Fáil Cork South Central TD Seamus McGrath has also pushed the move in recent weeks.

Self-employed childminders in the home can currently earn up to €15,000 gross per year tax.

However, Government has been facing consistent calls to make childcare both more affordable and more accessible and to make good on a previous commitment to drive childcare costs down to €200 a month.

"I'm looking at if there is a tax relief available in my own department to support people who are child-minding in the home. It hasn't been increased in quite a number of years and I'm positively disposed to that as well", said Mr Harris.

"Childcare will be, and we've said this right across Government, childcare will be a priority area [in the Budget]."

The Taoiseach and the Minister for Public Expenditure Jack Chambers are among the senior Government figures in recent days to confirm moves to tackle the price of kerosene, or home heating oil, in next month's Budget after a 44% jump in cost over the last year.

The industry body Fuels for Ireland has said the Coalition could move to cut VAT on home heating oil but two senior Ministers today distanced themselves from such a proposal, instead potentially opening the door for a further postponement of the carbon tax increase scheduled for next month.

"The tax side of that [a home heating oil cut] is quite complex", claimed the Minister for Enterprise Peter Burke, "the cost would be quite significant to do anything in relation to that."

"It will be catastrophic in terms of cost to move off a 13.5% band so it's very limited in tax in what we can do. There is Carbon Tax, so obviously Government will be looking at the options it has in regards to that. We will also look at targeted supports", said Mr. Burke at the opening of a Fine Gael conference for Small Businesses in Dublin.

"My sense of it is the benefit of a reduction in VAT is that it would be very limited for people in relation to [the cost of] home heating oil and the cost would be very significant [to the exchequer]", said Mr Harris.

"There is also the issue in relation to how other taxes are applied to home heating oil, to kerosene, particularly the issue of the carbon tax", he added while hinting the Government could treat home heating oil differently to other products when it came to the carbon tax based on proposals proffered by his department's tax strategy group over the summer.

The Tánaiste rejected an assertion he was on a "collision course" with his Fianna Fáil counterpart Michael Martin over a proposal to abolish stamp-duty for first time-buyers.

Fianna Fáil backbenchers believe it is a worthwhile measure to help young people buy their first home but Mr Harris again reiterated his opposition to the idea.

"I obviously talk to the Taoiseach on a very regular basis and we're working very well in relation to the framing of this budget," he said.

"I'm not intending to bring forward any proposals in relation to stamp duty. That's not news to colleagues across the coalition. My department doesn't believe it's a good idea from an economic point of view. We believe it could actually push up house prices and not lower the cost," said the Wicklow TD.

"We've been very clear with the 1.5 billion to spend in tax measures in this budget and the bulk of that will go on income tax measures, reducing the cost of the income tax burden facing people", he concluded.

The finance minister also confirmed the Government would "take stock" in next month's Budget on the planned unwinding of excise cuts on petrol and diesel on 1 November, echoing comments both he and the Taoiseach have made in recent days.