Finance Minister Simon Harris has confirmed that childcare will be a priority in the Budget, with a potential increase to the tax relief available to childminders working from their own homes.
Self-employed childminders can currently earn up to €15,000 a year without paying income tax on that income. Mr Harris said the existing allowance has not been increased for several years and that he is positively disposed towards reviewing it.
The Government has previously committed to reducing childcare costs to €200 a month, while also seeking to improve access to childcare places. Any change to the childminder tax relief could form part of wider measures aimed at supporting the sector.
Households using kerosene for home heating could also see measures announced in the Budget, following a significant rise in the cost of heating oil over the past year.
The fuel industry has called for a reduction in VAT on home heating oil, but Mr Harris and Enterprise Minister Peter Burke have indicated that such a move would come at a significant cost to the Exchequer.
Instead, the Government is examining other options, including the carbon tax applied to heating oil and the possibility of targeted supports for households.
Mr Harris said the Government would consider how different taxes affect the price of kerosene when deciding what measures to introduce.
Tax changes are also expected to form a significant part of the Budget package.
Mr Harris has said the Government has around €1.5 billion available for tax measures, with the majority expected to be directed towards reducing the income tax burden.
The precise details of any changes will not be known until the Budget is announced, but income tax is expected to be one of the major areas of focus.
One measure that appears less likely to feature is the abolition of stamp duty for first-time buyers.
Taoiseach Micheál Martin has previously said he is favourably disposed towards the proposal, while Fianna Fáil TD Seamus McGrath has also supported the idea.
However, Mr Harris has maintained his opposition to the measure, saying his department does not believe removing stamp duty would reduce the overall cost of buying a home.
He has argued that removing the tax could instead contribute to higher house prices.
Motorists could also see changes relating to fuel taxation.
The Government is due to continue unwinding previous excise reductions on petrol and diesel, with the next stage scheduled for 1 November.
Mr Harris has confirmed that the Government will review the planned increase as part of the Budget process, following similar comments from the Taoiseach in recent days.
The Government is now in the final stages of deciding the details of Budget 2027. While several potential measures have been signalled, the final package will not be confirmed until Budget Day.
Among the issues to watch will be any changes to income tax, support for childminders and childcare, measures aimed at reducing home heating costs, fuel taxes and the Government's approach to housing-related taxation.
Budget 2027 is due to be announced on 6 October.
