Coalition considering hike in tax relief for childminders
It is understood the current 15,000 euro cap could be raised to 20,000 euro.
A significant hike in tax relief for childminders is being considered in the Budget in an effort to incentivise providers to open their homes to more children.
Childminders providing a service for up to three children in their own home can currently qualify for a tax relief if they earn no more than 15,000 euro per year.
It is understood consideration is being given to raising that cap to 20,000 euro to make it more financially viable for childminders to offer their services to an additional child.
A senior Government source said the proposal is being examined as childcare is set to be a major theme of the Budget, with further moves on childcare costs also understood to be coming directly through the Department of Children.
Elsewhere, discussions ahead of the October 6 Budget are also centred around the pillars of taxation and energy.
The summer economic statement outlined there would be a tax package of 1.5 billion euro in new measures in the Budget – largely relating to income tax.
The exact shakedown of how the tax package will be broken down between an increase in tax bands and expansion of credits is still under negotiation between Fine Gael and Fianna Fáil.
On social protection, it is understood there is a split view on whether payments such as jobseekers’ allowance should be increased in line with the pension.