As our population ages, care for
the elderly will become an area of increasing concern.
We believe that the elderly are best cared for by their
children in the familial surroundings of their own homes.
We therefore encourage children to live with their aged
parents and to provide them the necessary care and support.
Currently, there is already a tax relief of $3,500 for
the maintenance of each aged parent. As a recognition
to those who live with their elderly parents, I have
decided to introduce a two-tiered relief for aged parents.
The relief for those who live with the aged parents
in the same household will be raised from $3,500 to
$4,500. For those who maintain their aged parents but
do not stay with them, the relief will remain at $3,500.
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increase the allowable wife relief
from $1,500 to $2,000;
-
increase the allowable normal
child relief from $1,500 to $2,000 each; and
-
relax the income ceiling condition
for eligibility of parent relief, wife relief, handicapped
siblings relief and child relief. The respective
reliefs will be allowed so long as the dependant
has income of not more than $2,000 in the year,
instead of the current level of $1,500.
The above changes will take effect
from the Year of Assessment 1998. The revenue loss to
Government is estimated to be $40 million a year.
