Shane Moynihan (Dublin Mid West, Fianna Fail)
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33. To ask the Minister for Finance if he will review the structure of tax relief on third-level tuition fees, with a particular view to supporting families who are just above the SUSI grant threshold; and if he will make a statement on the matter. [26239/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 473A of the Taxes Consolidation Act 1997 (TCA) provides for income tax relief in respect of qualifying tuition fees paid by an individual for a third level education course (including a postgraduate course), subject to the conditions set out in that section. The relief is granted at the standard rate of income tax (currently 20%), where an individual pays “qualifying fees” for an approved course whether on his or her own behalf or on behalf of another individual.

“Qualifying fees” mean tuition fees in respect of an approved course at an approved college and includes what is referred to as the “student contribution”.

The maximum amount of fees that can qualify for the relief is €7,000 per person, per course, per academic year. Each claim is subject to a single disregard amount each tax year. This amount is taken away from the total qualifying fees for the claim, such that relief can't be received on the disregarded portion. The disregard is currently €3,000 in the case of a full-time student and €1,500 for a part time student. If a claim has been made for more than one student or course, this disregard amount will only be deducted from the claim once.

In relation to the costs associated with third level education, it should also be noted that the Rent Tax Credit (RTC) is available to students and their parents, as provided for in section 473B TCA, which was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.

• In Finance Act 2023, the eligibility of the RTC was extended to parents who pay for their student children’s rental accommodation in the case of rent-a-room accommodation or “digs”. This applies to the years of assessment 2024 and 2025 and retrospectively to the years of assessment 2022 and 2023.
• In Budget 2025, the value of the RTC was increased to €1,000 for a single person and €2,000 for a jointly assessed couple. This increase applies for 2025 and also retrospectively for 2024 in recognition of the cost living pressures facing many renters.