Under plans being examined for the budget, the Government would expand renters’ access to its contentious Help-to-Buy scheme, with more able to claim the highest payment of €30,000.
The proposal, costed at €40 million, would allow renters to factor in previous rent payments when seeking the highest payout under the scheme, which is unlocked only if they have paid sufficient amounts of tax in recent years.
It represents a doubling down on the scheme in advance of a budget which will set the tone for the general election, widely expected to come as soon as November. Critics say the scheme adds to house-price inflation, while Sinn Féin said it would wind the scheme down if returned to government.
Coalition sources said the primary beneficiaries would be lower-income earners who have not paid enough tax to access the maximum grant amount in recent years, as well as cohorts such as returning emigrants who have not been working in the Republic.
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It would represent an increased payment for about 2,400 renters who have applied for help to buy and are due to be paid out in 2025, according to an internal analysis conducted by the Department of Housing.
Minister for Housing Darragh O’Brien has submitted the plan in advance of bilateral budget talks between Cabinet members and Minister for Finance Jack Chambers scheduled for this week.
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The department estimates that the beneficiaries would get approximately €5,400 more under the scheme if the change is approved. If the measure is not approved for the budget, it is expected that Fianna Fáil will make it a manifesto commitment.
In advance of the budget, Taoiseach Simon Harris is understood to have asked Minister for Social Protection Heather Humphreys to extend income disregards for carers, with a push under way for double lump-sum once-off payments — including for child benefit, fuel allowance, disability grant and the working family payment. The party is also expected to seek another hike in the rent tax credit to at least €1,000.
It comes as Fine Gael pushes to double the 10 per cent stamp duty charge levied on bulk purchasers of houses put in place to try to deter the practice in 2021. Minister of State for Finance Neale Richmond said the previous intervention had been effective at slowing the trend but that more action was now needed. He said he will raise the matter in budget talks with Mr Chambers this week.
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The Government previously rejected a Sinn Féin proposal to increase the tax, which is levied on purchases of houses by buyers who have already bought 10 homes or more in 12 months, to 17 per cent.
Mr Richmond rejected suggestions he was playing politics with the proposal — although a Fianna Fáil source described the move as “oneupsmanship”. Mr O’Brien said on Sunday that the Government had not agreed to the move but was open to reviewing it, adding that it would not be “appropriate” to discuss what potential increases there may be.
With the focus narrowing on the budget and the Government expected to make moves to alleviate pressures on small business, Minister for Enterprise Peter Burke will brief Cabinet on a new test that will be put in place on Coalition decisions to assess their impact on small and medium businesses.
The measures will mandate Government departments and State agencies to consider how changes in law will affect small businesses. The initiative will be included in the Cabinet handbook, the internal guide used by departments to prepare memos for Government.
Departments will also be asked to report back to Government on foot of this. Coalition sources said the decision was being taken after feedback from firms who complained that the administrative burden they face is disproportionate.
Mr Burke will also brief Cabinet on plans to set up a new group between his department and the Department of Public Expenditure to examine the delivery of infrastructure such as enhancements to the national grid amid demand for resources and infrastructure arising from inward investment.
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