Incentives to boost HK’s birthrate
October 25, 2023
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 techio sery io conceive a baby, the Got thent will enhance support by increasing the public service quota for assisted reproductive services and offering a tax deduction for such expenses, Mir Lee pointed out,
*Over the next five years from 2024-25 to 2028-29, the Hospital Authority CHA) will gradually increase the assisted reproductive service quota for in-vitro fortilisation (VF) 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. Boost Birth Rate
Except for 2021, Hong Kong’s economy shrank in 2019, 2020 and last year. Even if this year’s real gross domestic product growth met the government’s forecast of 4 to 5 per cent, the full-year economic output of 2023 would still fall short of that in 2018, said government economist Adolph Leung Wing-sing.
On the social front, the city’s fertility rate sank to the lowest on record, leading to calls for the government to do more to encourage couples to have babies.
What can Lee offer on October 25 to shake off some of the pessimism, press on with his policies and raise Hongkongers’ sense that the city is on the right track?
Political scientist Sonny Lo Shiu-hing said that with the slow recovery since the city reopened to the world, Hongkongers’ expectations of the chief executive had changed compared with this time last year.
Hong Kong leader says he will look at public’s ideas on ways to boost birth rate
20 Aug 2023
“Back then it was about meeting Beijing’s aspirations of making Hong Kong more stable, it was about national security and social stability, and he’s done that. Now it’s about advancing to prosperity, and he has to do more,
” he
said.
While the pressure mounts on Lee to act, the public coffers
at his disposal have been depleting. The government recorded a deficit of HK$139.8 billion (US$17.9 billion) in the 2022-23 financial year, with a further deficit of HK$54.4 billion anticipated for the current one.
The fiscal reserves stood at HK$698.6 billion as of August, nearly two-fifths lower than four years ago.
Lau Siu-kai, a consultant at the semi-official think tank, the Chinese Association of Hong Kong and Macau Studies, said Lee had a tough job as economic hardship would continue to eat into government revenues.
Urging the city leader to “bite the bullet”, he said the priorities should be policies and projects geared towards long-term development and people desperately in need.
“Some guidelines must be reviewed to reflect the government’s new priorities,” he said. “Some overly generous measures might have to be reconsidered, such as the extension of the HK$2
fare subsidy to people aged between 60 and 64.”
Given the “grave economic situation in the coming years”, the government would have to tap more into community resources to achieve public ends, he said.
Hong Kong in need of hope if birth rate is to rise
﻿﻿With the number of marriages and babies born plummeting, the government should instil confidence in the public and provide more incentives to raise children
﻿﻿With the Covid-19 pandemic still gripping Hong Kong, it is hardly surprising that people are putting back marriage and birth plans.
﻿﻿Temporary as it may be, the phenomenon has implications on population and public services in the longer term. Indeed, the trend, aggravated by high living costs and political and economic gloom, emerged long before the onslaught of the coronavirus.
﻿﻿It should be addressed in the wider context of social development by the new government.
﻿﻿Even without the on-and-off restrictions on wedding banquets over the past 2½ years, it would take the most eager couple to tie the knot under the prevailing atmosphere.
﻿﻿The crude marriage rate - the number of marriages per 1,000 in the population - hit
30-year lows of 6.7 for women and 8.0 for men last year. can you conclusion what method Hong Kong government do