Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I move amendment No. 3:

In page 12, line 24, after “Placement” to insert “or an Internship Clinical Placement”.

The pandemic placement grant, PPG, is a payment of €100 per week to full-time student nurses and midwives on clinical placements as supplementary financial support in carrying out this placement during the pandemic. Section 4 of the Finance Bill inserts a new section into the Taxes Consolidation Act in order to ensure that the PPG is received net of tax. On 4 November, a Government decision was made to extend the PPG for a further academic year and to include final year intern students at a half rate.

Arising out of these changes, as I indicated on Committee Stage, I am introducing a Report Stage amendment to section 4 of the Finance Bill to extend the tax disregard provided in respect of these payments made in 2021 to include also the payments that will be made in the course of next year. I do not expect the tax cost of this change to be substantial. There are some 7,000 student nurses and midwives in total. The Department of Health estimates a total of 5,300 supernumerary students and 1,695 interns in the academic year 2021-22. All payments in respect of the academic year 2021-22 will occur in 2022. The maximum tax cost in 2022 of the income disregard proposal is estimated to be around €3 million. This assumes that all beneficiaries will pay tax at a blended rate of 30%, plus the relevant USC and PRSI. This is an outside estimate. It is likely the actual outturn will be a lot lower.

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