As Chief Executive John Lee laid out his Policy Address priorities, he announced that the Government will offer a one-off cash bonus, provide priority access to housing and raise the tax-deduction ceiling for families with newborns in its quest to promote fertility and create a pro-childbearing environment.

He explained that because Hong Kong’s birth rate remains at its lowest level, apart from handing out the Newborn Baby Bonus, raising the accommodation-related tax deduction ceiling for families with newborns, the Hong Kong Housing Authority (HKHA) plans to introduce schemes designed to assist such families.

Support families with newborns

Mr Lee said: “We will provide a one‑off cash bonus of $20,000 for each baby born today or after in Hong Kong to a parent who is a Hong Kong Permanent Resident.

“Starting from the year of assessment 2024-25, we will raise the deduction ceiling for home loan interest or domestic rents from the current $100,000 to $120,000, an increase of 20%, for taxpayers who live with his/her first child born today or after until the child reaches the age of 18.

“The HKHA will introduce the “Families with Newborns Flat Selection Priority Scheme” to raise the chances for families with newborns to purchase SSFs.  Starting from the HOS sale exercise next year, a quota of flats will be reserved for balloting and priority flat selection by family applicants with babies born today or after until the children reach the age of three.  In each of the HOS or GSH sale exercise, an additional 10% of the total number of flats will be reserved for the purpose of selection priority.

“The HKHA will introduce the “Families with Newborns Allocation Priority Scheme” to advance the allocation of PRH flats for families with newborns. Under this scheme, applications of families that have babies born today or after will have their waiting time for PRH flats reduced by one year.  This arrangement will take effect from next April.”

Support assisted reproductive services

Noting that some couples may need assisted reproductive technology to conceive a baby, the Government will enhance support by increasing the public service quota for assisted reproductive services and offering a tax deduction for such expenses, Mr Lee pointed out.

“Over the next five years from 2024‑25 to 2028‑29, the Hospital Authority (HA) will gradually increase the assisted reproductive service quota for in‑vitro fertilisation (IVF) treatment by more than 60%, from 1 100 treatment cycles per year to 1 800 treatment cycles per year.

“Starting from the year of assessment 2024/25, the Government will provide a deduction for expenses on assisted reproductive services under salaries tax and personal assessment, subject to a ceiling of $100,000 a year.”

Additionally, the Chief Executive emphasised that strengthening support for working families in childbearing and unleashing their labour force is equally important.

Assist working families in childbearing

 He stated that besides increasing the Working Family Allowance, the Government will increase child care centre places and allowances and extend an after-school care programme aimed at covering all districts.

“Starting from next April, the household and child allowances under the Working Family Allowance Scheme will increase by 15% to alleviate their burden.

“Over the next three years starting from 2024, 10 more aided standalone child care centres will be set up in phases, providing about 900 additional places for day child care services.

“Over the next three years starting from 2024, the After‑School Care Programme for Pre‑primary Children will be extended in phases to cover all districts in Hong Kong.  The number of participating centres will be increased from 16 to 28, and the number of service places from about 670 to nearly 1,200.”

Mr Lee added that a five-year Funding Scheme on the Promotion of Family Education will be launched in the latter half of next year to support community projects promoting family education.

The scheme will consolidate existing initiatives, with the annual amount of funding increased to $8 million.