Sep 11, 2012:

Older People Must Receive Fair Treatment in Introduction of Property Tax - Active Retirement Ireland

The new property tax must take into account the ability of pensioners to pay and the fact that, for many older people, the capital value of their homes does not relate to their current income.  That's according to Active Retirement Ireland (ARI), the national representative body for 549 Active Retirement Associations, with a total membership of over 22,500 people. 

 

Commenting today (11.09.12), Maureen Kavanagh, Chief Executive Officer of ARI, said: "Many older people bought their homes before the property boom, and their houses have risen in value in the ensuing years.  While these prices may have fallen again in recent years, they would still exceed the purchase values.  However, because most older people have a fixed, limited income, their ability to pay the property tax must be taken into consideration by the Government. 

 

"Taking a 'one size fits all' approach to the introduction of the property tax would have seriously negative consequences for low-income groups, including older people.  Many pensioners survive on a fixed income of just over €200 per week.  It simply would not be fair to calculate the tax on their homes in the same manner as those whose incomes are far greater."

 

Ms. Kavanagh pointed to existing taxation models in the UK and Australia, which aim to ensure greater equity for low-income groups. 

 

"UK council tax bills do not just take account of the value of property; they also take account of the circumstances of the resident through a system of discounts and exemptions," she said.  "Similarly, in Australia, a seniors' supplement scheme exists to help older people pay regular bills, such as rates, phone, energy and motor registration.

 

"Active Retirement Ireland is calling on the Government to introduce a similar system to protect those on low incomes - including older people - and to ensure the new property tax is introduced in a fair manner.  To increase compliance with the new tax, and to make it easier for people to pay, we would also urge the Government to consider a weekly payment system, whereby people could make payments through their local post office or credit union, to alleviate the burden of having to pay an annual charge."

 

Need for Accountability

Active Retirement Ireland also said accountability and transparency in relation to revenue collected through the new tax would be important. 

 

"To cite the examples of Australia and the UK again, in both jurisdictions, local government give regular accounts back to the people on how money collected through property or council tax schemes is spent," said Maureen Kavanagh. 

 

"In Ireland, the Government needs to ensure there is public awareness of how the property tax system will work and where the monies collected will go.  There must be clear lines of accountability between central government and the local authorities receiving the funds.  We have been told that local councils will have their budgets slashed if this charge is not collected, so we need assurances that the money from any property tax will have a direct local impact.  Likewise, local authorities must be fully and transparently accountable to local people for the decisions they take in relation to how the monies are spent."

 

Ms. Kavanagh said Active Retirement Associations throughout the country will be briefing their local politicians in relation to their concerns about the property tax over the coming months.

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