Katherine Zappone stands firm on cheaper childcare for low-income families

A subsidised childcare package for low-income families was signed off by ministers Paschal Donohoe and Katherine Zappone last night.

Ms Zappone was said to be “extremely happy” with the package, which is set to benefit families with a net income of up to €47,000.

She had pressed for subsidised childcare to be prioritised for lower-income families, while Fine Gael TDs had sought to include “squeezed” middle-income families on up to €55,000.

The Irish Examiner has learned the details of what level the package will apply to remains to be finalised.

It comes amid speculation that the proposed tax-break for first-time buyers, which was due to be up to €15,000, could now be closer to €20,000, as negotiations between Public Expenditure Minister Mr Donohoe and Housing Minister Simon Coveney continue.

A spokeswoman for Mr Coveney said she was not aware of where the €20,000 figure came from, but it was understood a figure greater than €15,000 was now accepted.

Meanwhile, tax breaks for landlords will feature as part of next week’s budget.

The measure, to which the Government is agreeable, would allow property tax become a deductible expense in calculating a landlord’s taxable rental income.

Landlords want the move — recommended in the Thornhill report on local property tax — implemented or suggest that, alternatively, the tax should be paid by tenants.

Department of Finance sources

confirmed that the measure is in the mix, on the basis that the Programme for Government promises “enhanced tax relief for landlords who accept rent supplement and Housing Assistance Payment tenants”.

Finance Minister Michael Noonan previously told the last Dáil the Government “had agreed in principle” with “the recommendation of the Thornhill Report that local property tax should be a deductible expense in calculating a landlord’s taxable rental income”. He noted the report recommended “phasing in deductibility over a period of years”.

Department of Finance sources said last night that a lot of good measures in principle would be in the budget, but that some would be “funded on a phased basis”.

Mr Donohoe separately said he is “in the middle of very difficult discussions”, which are set to continue over the weekend.

“I have much progress that I have to make in the coming days,” he said.

News: 4