Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

The policy is being driven by the Department of Education and Skills. The registration fee, which has been renamed the student contribution fee, was €2,000 in 2011 and in 2012 it increased to €2,250. The Minister signalled it will increase to €2,500, €2750 and €3,000 in 2013, 2014 and 2015 respectively. As part of the original arrangement, because the measure was introduced in 2011 to get a larger contribution for students and their parents for third level education, there was a disregard of the equivalent amount for tax purposes. When it was €2,250, as it was in 2012, there was a disregard or, in other words, it could not be claimed against tax. We are following the education policy. The Department of Education and Skills is increasing the sum to €2,500 so we are maintaining the disregard as equivalent to the student contribution. We are not the policymakers, we are applying tax policy to the new level of student contribution. It will continue until 2015. It was part of the contribution of the Department of Education and Skills to the third level education budget by taking an extra student contribution from certain students.

Something analogous happens with part-time courses. Where all the fees relate to part-time courses, the section provides for an increase in the amount disregarded for the purposes of the relief. The equivalent figures are an increase from €1,125 to €1,250 for 2013, €1,375 for 2014 and €1,500 for 2015. The amendment maintains the policy of the Government previously in this area such that families with more than one student in third level education can claim tax relief for the student contribution payable in respect of the second and subsequent students. To put it briefly, the Department of Education and Skills is leading the policy and taking the student contribution from €2,250 to €2,500 in 2013. The Department is doing this as a contribution to its budget and its transfers to the higher education sector. Tax policy is following the education policy in saying the disregard will be the equivalent of the student fee. In other words, parents cannot claim the student contribution against their income tax. On the other hand, if there is more than one member of the family in college, the parents can claim the student contribution against their personal taxes for the second or subsequent children in third level education. We are not the policymakers. We are applying tax policy to the changes introduced by the Department of Education and Skills.