Michael Noonan (Limerick City, Fine Gael)
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The system of individualisation has been in the tax code since 1999. It is my view that individualisation has now bedded into the tax system to a degree where it cannot be changed easily. It was estimated last year that to complete or to reverse individualisation would cost in the region of €800 million.

The issue of tax individualisation was considered by the Commission on Taxation in 2009 and that body recommended that no change should be made to the current system. It concluded that the current system represents a balance between, on the one hand, acknowledging the choices families make in caring for children and, on the other, taking account of the need to encourage labour market participation.

In the recent Budget, the Government has continued the process of reducing the tax burden on low and middle income earners including, among other changes, a decrease in the three lowest rates of USC with effect from 1 January this year.  In addition the home carer tax credit, which was introduced following the commencement of individualisation, was increased in value from €810 to €1,000.  This credit is available where one spouse works primarily in the home caring for children, the aged or incapacitated persons.

I intend, subject to being returned to office and having the required fiscal space, to continue to reduce the tax burden on low and middle income earners in this manner in future budgets.