THOUSANDS of Irish people could benefit from a €1,000 or €2,000 payment straight into their accounts after Budget 2025.
Taoiseach Simon Harris has already confirmed that the rent tax credit, which was €750 and €1,500 last year, will be hiked again in October.
The current rate of €750 for a single person could be hiked to €1,000, while for jointly-assessed couples the payment could go to €2,000 after being capped at €1,500 in last years budget.
Mr Harris said: “We’ve taken a number of measures to assist including a renters’ tax credit – I hope we can do more on that in the budget.
“I think it does help to put a little bit of money back in people’s pockets towards the cost of rent.
“But fundamentally, the issue here is around supply and it has to be around making sure that we grow the supply.”
Housing Minister Darragh O’Brien wants to see the boost increase in a move targeted specifically towards young tenants.
The credit, which can be claimed by around 400,000 renters, was previously increased in Budget 2024.
Single renters saw the payment of €500 increase to €750 and jointly-assessed couples saw a surge from €1,000 to €1,500.
And thousands of renters could be owed the credit for previous years, with figures showing how countless payments have been left unclaimed.
The Taoiseach confessed that the Government’s housing targets are too low and need to be increased to around 50,000 per year for the next five years.
The Fine Gael leader continued: “My priority on this is maximising housing supply and I want to see what more we can do in the budget on the current and capital side to increase housing supply.
“I’ve already made the point that I think the generation that most suffered from the mismanagement of this country in the past that led to the financial collapse of our country should now see the proceeds of the sale of bank shares invested in their future including additional money into housing.
“The Land Development Agency is now beginning to build a significant number of houses. Bizarrely Sinn Fein want to abolish it.
“I want to put more money into it to build more homes and that should be the priority.”
HOW TO CLAIM RENT TAX CREDIT
- Log into revenue.ie.
- In the first box, under PAYE Services, click Review your Tax.
- Once you have filled out your basic details and checked your income tax details are correct, you can apply.
- To apply for the tax credit, go to the You and Your Family section, and scroll down to rent tax credit.
- You’ll be asked to fill out your basic details and if you receive any housing support.
- Your PPS number is required and Revenue also asks for the RTB number of the registered property.
- Renters are asked to fill in the landlord’s home address and state if they are resident in Ireland but this section is not essential.
- Claimants are also asked to declare if they’re related to the landlord and whether the property is your main residence.
- The Rent Tax Credit Form is next, which allows users to put in their total rent and calculate what they’re entitled to. The maximum which can be applied for is €2,500 meaning someone paying rent for an entire year would likely have paid well over €2,500 and so be entitled to the full 20 per cent or €500 tax credit. This will amend to €750 then for the year 2024, but €500 will be the maximum claim for tax years 2022 and 2023.
Mr Harris said that increasing the supply of housing will be his number one priority in the budget.
The €8.3 billion budget, which will be revealed on October 1, will outline a total of €1.4 billion in taxation measures and new expenditure of €6.9 billion.
Other changes to look out for include social welfare payments, wages tax bands, minimum wage, inheritance tax, USC, energy credit and the Help To Buy scheme.
Meanwhile, the Children’s Rights Alliance has called on the Government to raise the Increase for a Qualified Child payment by €6 a week for children aged under 12 and by €15 a week for children over 12.
The IQC is an extra child benefit payment for parents who are in receipt of social welfare payments, usually targeted at lone parents.
