Housing Minister calls for increase to renters tax credit

Housing Minister Darragh O'Brien said: 'What I’d like to see us do, as we are coming towards the budget of this year is a further increase in the renters tax credit. I would like to see that increased further.' Picture: Sasko Lazarov/RollingNews.ie

Housing Minister Darragh O’Brien has called for an increase to the renters tax credit in the upcoming Budget, beyond the current €750 a year available to tenants.

Speaking at a launch of new social homes in Kilternan, Co Dublin, Mr O’Brien said the tax credit has significantly assisted renters since it came into effect two years ago.

“What I’d like to see us do, as we are coming towards the budget of this year is a further increase in the renters tax credit. I would like to see that increased further,” Mr O’Brien said.

“That’s a real assistance for renters, €750 per renter, to help reduce the cost.”

Pushed on how much he wanted to see the tax credit rise by, Mr O’Brien said: “I think I’ll let Jack [Chambers] get his feet under the desk first before I go to him and start asking how much I actually want to increase it by.”

It is understood there is a desire by officials within the Department of Housing to have the credit rise to €1,000 a year.

Asked if he would consider further widening the maximum income levels to make more people eligible for social housing, Mr O’Brien said he would keep further changes to the income limits “under review”.

Currently, in Cork City, the maximum an individual can earn to qualify for social housing is €40,000, while it falls to €35,000 in Cork County.

The early push for budget asks comes as Fianna Fáil’s Jack Chambers was formally appointed as the Government’s new Finance Minister on Wednesday.

The renters' tax credit was first introduced as part of Budget 2023, starting out at €500 per renter per year. This was further increased last October, rising to €750 per renter per year.

There had been a push ahead of last year’s budget for the credit to increase to €1,000 a year. In recent months, new Taoiseach Simon Harris told his Ard Fheis in April that the tax relief should rise to €1,000 a year.

At the recent National Economic Dialogue, Mr Harris pledged that there would be further income tax cuts and a cost-of-living package in October’s budget. The Taoiseach also promised a further package of measures to assist businesses.

The parameters of the upcoming budget are due to be set out in the coming weeks by Mr Chambers and Public Expenditure Minister Paschal Donohoe, during the Summer Economic Statement.