Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 to be gazetted

The Inland Revenue (Amendment) (Tax Concessions, Concessionary Deductions and Allowances) Bill 2026 will be gazetted on March 6 to implement the concessionary tax measures proposed in the 2025 Policy Address and the 2026-27 Budget.

Key adjustments to salaries tax and tax under personal assessment, effective for the year of assessment 2026/27, include:

a. An increase in basic allowance and single parent allowance from $132,000 to $145,000, and the married person's allowance from $264,000 to $290,000.

b. An increase in dependent parent/grandparent allowances and additional dependent parent/grandparent allowances from $50,000 to $55,000 (for dependents aged 60 or above, or disabled) and from $25,000 to $27,500 (for dependents aged 55 or above but below 60).

c. An increase in the deduction ceiling for elderly residential care expenses from $100,000 to $110,000 for each eligible parent/grandparent.

d. An extension of the claim period for additional child allowance for newborns from one year to two years.

e. An increase in the child allowance and additional child allowance for newborns from $130,000 to $140,000.

These measures will benefit approximately 2.09 million taxpayers for measures in (a), 830,000 taxpayers for measures in (b) and (c), and 360,000 taxpayers for measures in (d) and (e).

The proposed one-off reduction of 100% of salaries tax, tax under personal assessment, and profits tax for the year of assessment 2025/26, subject to a ceiling of $3,000 per case, will benefit about 2.12 million individual taxpayers and 170,800 corporations and unincorporated businesses, resulting in revenue forgone of approximately $5.78 billion.

The Bill will be introduced into the Legislative Council for first reading and the commencement of the second reading debate on March 18.