The Inland Revenue (Amendment) (Child Allowance & Tax Concessions) Bill 2023 will be gazetted on March 3 to implement the tax concessions and child allowance increase proposed in the Budget.
The Budget proposed to reduce salaries tax, tax under personal assessment and profits tax for the 2022-23 assessment year by 100%, subject to a ceiling of $6,000 per case.
The measure will benefit 1.9 million taxpayers and 133,500 tax-paying businesses, and reduce government revenue by $9.2 billion.
The Budget also proposed to increase the basic child allowance and the additional child allowance for each child born during the year of assessment from $120,000 to $130,000 starting from the 2023-24 assessment year.
About 324,000 taxpayers stand to benefit, leading to revenue forgone of about $610 million per year.
The bill will be tabled at the Legislative Council on March 15.