2025 Policy Address – Tax-related Policy Measure (on Individuals)

On 17 September 2025, the Chief Executive proposed in his 2025 Policy Address to extend the claim period of additional child allowance for newborns from one year to two years in order to promote fertility. Starting from the year of assessment 2026/27, a taxpayer may claim twice the allowance (i.e. $260,000, based on the current child allowance of $130,000) for each child in the first two years following childbirth. This measure is applicable to all children under the age of two by the end of the year of assessment (i.e. all children born on or after 1 April 2025).

The above measure can only be implemented after completion of the relevant legislative process.

Answers to the frequently asked questions (FAQ) are provided.