Government announces HK$20,000 newborn baby cash bonus and shortened public housing waiting period

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25th October 2023 – (Hong Kong) In the latest policy address, the Hong Kong government unveiled a series of initiatives aimed at promoting childbirth and supporting families. One notable measure is the introduction of the “Newborn Baby Cash Grant,” which will provide a one-time cash incentive of HK$20,000 to every newborn baby born in Hong Kong, provided that at least one of their parents is a permanent resident.

Starting from the 2024/25 tax year, taxpayers residing with their firstborn child born on or after today will also benefit from increased deductions. The maximum limit for the Deduction for Home Loan Interest or Tax Deduction for Domestic Rent will be raised from HK$100,000 to HK$120,000, continuing until the child reaches 18 years of age. Additionally, for families with babies born from next year onwards, the government will reserve a portion of public housing units for them to participate in a lottery and have priority in housing selection until the child turns three years old.

Starting from the assessment year 2024/25, there will be an increase in the accommodation-related tax deduction for taxpayers who live with their first child until the child reaches 18. The deduction ceiling for home loan interest or domestic rents will be raised from $100,000 to $120,000, representing a 20% increase. Additionally, the Hong Kong Housing Authority (HKHA) will implement the “Families with Newborns Flat Selection Priority Scheme” during the sale of subsidised flats, reserving a specific quota of flats for families with newborns. Moreover, to expedite the allocation of public rental housing (PRH) flats, the HKHA will introduce the “Families with Newborns Allocation Priority Scheme,” reducing the waiting time for PRH flats by one year for families with babies born on or after April of the following year.

In addition to these housing-related measures, the government is committed to providing assistance in assisted reproductive services. The Hospital Authority plans to gradually increase the quota for in-vitro fertilisation treatments over a period of five years, starting from the 2024/25 fiscal year. The number of available slots will be raised from 1,100 to 1,800 per year, aiming to offer greater support to couples seeking fertility treatments.