Around 32,000 parents have received the HK$20,000 newborn baby bonus, according to Deputy Chief Secretary Warner Cheuk Wing-hing. This initiative is part of efforts to increase the birth rate by offering a one-time cash allowance to parents for each baby born.
In addition, more than 3,000 public housing applicants with infants aged one year or younger have been granted a one-year credit waiting time under the Families with Newborns Allocation Priority Scheme. As of now, 170 families have already moved into public housing flats.
In response to a question from Legislative Council member Chow Man-ktong, Cheuk stated that the Housing Authority received 106,000 applications for Home Ownership Scheme flats this year. Of these, approximately 50,000 were family applications, with about 10 percent qualifying for the newborns’ priority scheme. The total disbursement of the HK$20,000 baby bonus has reached HK$640 million as of the end of last month.
Cheuk also noted that the government plans to review the program two years after its introduction.
Regarding tax relief, Cheuk announced that the basic allowance for each child, as well as the additional allowance for children born during the assessment year, will increase from HK$120,000 to HK$130,000 starting in 2023/24. Furthermore, taxpayers living with children born on or after October 25, 2023, may qualify for a tax deduction ceiling of HK$120,000 for home loan interest or domestic rent, applicable for up to 19 years of assessment.
“These measures aim to support childbearing by easing the financial burden on taxpayers,” Cheuk explained.
He also responded to proposals for extending the claim period for the additional child allowance and introducing tax deductions for hiring foreign domestic helpers. Cheuk emphasized the need to balance policy objectives with fiscal responsibility, given the government’s current high fiscal deficits. As a result, there are no plans to introduce tax deductions for hiring non-local domestic helpers.
Regarding the suggestion to subsidize antenatal check-up expenses for couples, Cheuk highlighted that the government already provides free antenatal services for all expectant parents. These services include the first antenatal check-up, medical assessments, and various tailored investigations and vaccinations.
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