Care Alliance Ireland Calls for Tax Exemption on Carer's Allowance in New Position Paper
Care Alliance Ireland has published a new Position Paper making the case for exempting Carer's Allowance and Carer's Benefit from income tax in the Republic of Ireland.
The paper was presented directly to An Tánaiste, Simon Harris, during a meeting at Government Buildings yesterday.
Inspired by recent media coverage of the taxation of Carer's Allowance, the Position Paper argues that these supports should be aligned with a number of comparable State income supports already treated as tax-exempt. The paper presents financial, moral, precedent, adequacy, and equity-based arguments, all supported by peer-reviewed research.
The paper makes three key recommendations:
Publish an Exchequer note detailing the fiscal implications, distributional impacts — including gender — and administrative simplification benefits of making Carer's Allowance and Benefit tax exempt.
Legislate to make Carer's Allowance and Benefit exempt from income tax, in line with existing exemptions for Disability Allowance, Child Benefit, and Foster Care Allowance.
Commit to a broader coherence review of the adequacy of carer income supports.
The full Position Paper is available to read on the Care Alliance Ireland website.