Carers facing tax liability
Deputy O'Flynn raised alarm among carers who received Revenue letters about tax liabilities on carer's benefit and allowance, asking for exemptions and transition protections. The Minister said carers are highly valued, noted plans to abolish the means test for carer's allowance, and said a briefing had been requested on the tax issue.
My office has been inundated with telephone calls from worried carers in receipt of carer's benefit and carer's allowance. A number of them received letters from the Revenue this week and last week telling them they are liable for tax. Does the Minister accept many of these carers were unaware there was a tax payment due or a burden upon them? Will his Department consider exemptions and thresholds for transition and protection of carers affected to ensure they are not penalised? Carers are among the most vulnerable people in our community. The Minister mentioned how big our welfare system is and how big the budget is. I find it entirely unfair people who are giving up and sacrificing and are getting out of the house to get a break for a couple of hours while caring for and committing to their families are receiving worrying letters from Revenue saying they are being audited, owe tax and will be paying tax on their carer's benefit or carer's allowance.
Comment on this
I thank the Deputy for raising this very important issue. I am a firm advocate for carers. We in society owe a huge debt for the work they do. That is why the Government is responding through supports and is on a trajectory to abolishing the means test for carer's allowance to demonstrate our support for the sector. The taxation is based on other income people may have received. The Taoiseach has sought a briefing on this. It was raised in the House earlier this week. We can revert to the Deputy in due course.