The government has announced a $300 million pro-family package.
While some changes were widely anticipated, others, like a significant
reduction in the maid levy for families with young children and
elderly persons, were a big surprise.
Highlights of Pro-Family Package
• $10,000 - $20,000 Parenthood Tax Rebate (for parents
with babies born on/after 1 Jan 2004)
• Working Mothers' Child Relief of 5-25% of income
• Use of Medisave for 4th or higher order births for
pre-delivery (eg ultrasound scans) and delivery expenses (for
parents with babies born on/after 1 Aug 2004)
• Use of Medisave for Assisted Conception Procedures
for couples who start their ACP treatment cycles on or after
1 Aug 2004.
• Enhanced baby bonus of $3,000 for first child, up
to $9,000 for 2nd child and up to $18,000 for 3rd or 4th child
- payout over 2 years
• Additional 4 weeks maternity leave may be taken anytime
within 6 months from birth; government to pay for additional
4 weeks for 1st & 2nd child, and entire 12 weeks for 3rd
& 4th child subject to $10,000 cap per 4 weeks
• Maid levy for families with children below 12 or elderly
parents above the age of 65 cut by $95 to $250 from the current
$345 as of 1 Aug
• Singles who marry on/after 1 Aug to receive Top-Up
Grant to the prevailing CPF family housing grant to buy resale
flat
• Infant-care subsidy of up to $400 per month from 1
Aug
• Grandparent Caregiver tax relief of $3,000, applies
to working mothers of children aged 12 & below and being
cared for by the grandparents as at 1 Jan 2004
• Government to introduce $10m fund to provide financial
support to companies to implement family-friendly work practices
Chairman of Steering Group on Population Lim Hng Kiang says
new measures will raise total annual government expenditure
on pro-family measures to $800m a year; will give parents
more time with children, more childcare options and better
balance between work and family life.
