Cutting tax on workplace childcare supports would benefit workers and employers  – Boland

Childcare support provided by employers through Benefit in Kind (BIK) should be tax-exempt, a Fine Gael General Election Candidate has said.

Grace Boland, a practicing solicitor running in Dublin Fingal West, said under current regulations, childcare support offered by employers is treated as a taxable BIK—an approach that must change to benefit workers, employers, and the broader economy.

Grace Boland, General Election Candidate in Dublin West said: “Childcare is not an optional perk; it’s an essential infrastructure which is the key to unlocking Ireland’s best resource— our educated women and men.

“In my own experience as a parent to twins, the lack of childcare has forced me to pivot my career and become self-employed, relying heavily on informal arrangements. This is something that I feel should be addressed.

“Right now, when employers offer childcare support—whether through onsite facilities or financial contributions—Revenue treats this as taxable income for employees. That means income tax, PRSI, and USC are levied on essential childcare benefits, as if they were extra salary.

“It is essential that childcare is recognised as a crucial component of a well-functioning labour market, and our tax policies should reflect that. There should be no stone unturned in achieving this.

“Employers who recognise this and offer childcare support shouldn’t be penalised—they should be encouraged. By taxing these benefits, we’re discouraging employers from stepping up and contributing to a functioning, buoyant labour market.

“Certain employee benefits, like the Cycle to Work Scheme and health supports, are already exempt from BIK tax. If we can exempt those, why are we still taxing childcare, which is even more fundamental to our economic growth and workforce stability?

“This policy change should complement broader efforts to create a public childcare model. A cohesive public-private approach—where employer incentives go hand-in-hand with a robust public childcare system—is the sustainable solution that working parents need.

“The state needs to adjust its policies to reflect the needs of a modern economy—childcare is critical infrastructure and treating it as a taxable benefit holds back our progress. We must make these changes if we want to create a fairer, more inclusive Ireland.” Boland concluded.