John McGuinness (Carlow-Kilkenny, Fianna Fail)
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167. To ask the Minister for Finance if an exemption to the household charge will be examined to help support family carers. [30068/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 156 of the Finance (Local Property Tax) Act 2012 converted any arrears of Household Charge (HHC) that were still outstanding on 1 July 2013 to a Local Property Tax (LPT) liability of €200 per property, and made Revenue responsible for collecting the increased amounts. Prior to 1 July 2013, collection of the original €100 HHC was the responsibility of the Local Government Management Agency (LGMA) on behalf of the Local Authorities.

With regards to the Local Property Tax, the Government decided that a liability to the LPT should apply to all owners of residential properties with a limited number of exemptions. As a matter of Government policy, and in order to keep the rate of the tax low, the Government agreed that reliefs should be targeted at owner occupiers where there is inability to pay the tax.

Accordingly, the Finance (Local Property Tax) Act 2012, as amended, provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. To qualify for a deferral, the residential property must be occupied as a sole or main residence. The gross income thresholds for a full deferral are €15,000 for a single person and €25,000 for a couple, whether married persons, civil partners or qualifying cohabitants. A person may claim a deferral if their gross income will not, "as can reasonably be foreseen at the liability date" exceed these thresholds in that year.

A deferral of up to 50% of the LPT liability will be possible where the gross income of the liable person does not exceed €25,000 for a single person or €35,000 for married persons/civil partners/cohabitants. The full and partial deferral thresholds may be increased in the case of properties occupied as a sole or main residence and subject to a mortgage. In such cases, the gross income thresholds may be increased by 80% of the mortgage interest payments.

Where a liable person does not qualify for, or does not wish to avail of, a deferral, phased payment of LPT can be used to assist with budgeting. The Government is aware of the difficulties facing many individuals and families, and for this reason a wide variety of methods for payment of the LPT are available from which liable persons can choose the method most suited to their individual circumstances. The LPT can be paid by way of phased payments rather than in a single payment; it can also be paid by direct debit; or through payment service providers such as An Post TaxPay, Payzone and Omnivend.

I have initiated a review of the LPT which is looking in particular at the impact on LPT liabilities of property price developments. It includes an examination of the outstanding recommendations of the 2015 Thornhill review of the Local Property Tax. It is expected that the review will be completed at the end of August and that the review report will provide a number of policy choices for consideration. The review will be informed by the desirability of achieving relative stability, both over the short and longer terms, in LPT payments of liable persons. It also included a consultation process to enable all interested parties and individuals to submit their views on the future of the LPT.