The Hong Kong Government has recently introduced a series of policies and measures aimed at addressing the declining birth rate in the region. These initiatives, discussed by the Legislative Council Subcommittee on November 4, 2024, are designed to create a more favorable environment for childbirth and support families in their parenting journey.
One of the most significant measures is the Newborn Baby Bonus, which offers a one-off cash bonus of $20,000 to eligible parents for each baby born in Hong Kong between October 25, 2023, and October 24, 2026. To qualify, at least one parent must be a permanent resident of Hong Kong at the time of application. Parents are encouraged to apply for this bonus when registering the birth, ideally within 42 days, or in person at a births registry within six months. As of September 30, 2024, the government had received over 26,948 applications, resulting in disbursements totaling approximately $520 million. This scheme is set to run for three years, with a review planned after two years to assess its effectiveness.
In addition to the cash bonus, the government is raising the Accommodation-Related Tax Deduction Ceiling. Starting from the 2024/25 assessment year, taxpayers who reside with a newborn child can claim an additional $20,000 deduction for home loan interest or domestic rents, on top of the existing $100,000 ceiling. This additional deduction can be claimed for a maximum of 19 years, providing significant financial relief to families.
To further support families, the Hong Kong Housing Authority (HA) has introduced a Priority Arrangement for Subsidised Sale Flats (SSFs). Under the “Families with Newborns Flat Selection Priority Scheme,” family applicants with babies born on or after October 25, 2023, and aged three or below on the application closing day will have priority in selecting flats. The HA has reserved 40% of flats for eligible applicants under this scheme, which will remain in effect until the child reaches the age of three.
Moreover, the HA has also implemented a Priority Arrangement for Public Rental Housing (PRH) Allocation. Starting April 1, 2024, families with newborns will have their waiting time for PRH flats reduced by one year if the baby is born on or after October 25, 2023, and is one year old or younger at the time of application. By the end of September 2024, approximately 2,300 eligible PRH applications had their waiting times reduced, showcasing the immediate impact of this initiative.
The government is also enhancing support for families through Assisted Reproductive Services. The Health Bureau plans to increase public service quotas for assisted reproductive services, with the Hospital Authority gradually raising the in vitro fertilization treatment quota from 1,100 to 1,800 cycles per year between 2024-25 and 2028-29. Additionally, starting from the 2024/25 assessment year, tax deductions for expenses related to assisted reproductive services will be available, with a ceiling of $100,000 per year. This measure aims to assist couples facing conception difficulties, while excluding services that may delay childbearing for non-medical reasons.
Recognizing the challenges faced by working families, the Labour and Welfare Bureau has rolled out several initiatives. The Working Family Allowance (WFA) has seen a 15% increase in household and child allowances from April 2024, benefiting all recipient households. Furthermore, over the next three years, 11 new aided standalone child care centers will be established, providing around 1,000 additional places. The Child Care Centre Parent Subsidy will also increase from a maximum of $600 to $1,000 per month starting April 2024.
The government is extending its After-School Care Programme for Pre-primary Children to cover all districts in Hong Kong, increasing the number of participating centers from 16 to 28 and service places from about 670 to nearly 1,200. Additionally, the Enhanced Neighbourhood Support Child Care Project will double its service places to about 2,000, with an estimated 25,000 beneficiaries expected. Incentive payments for home-based child carers will also see an increase, with higher rates for those caring for infants and young children.
To promote family education, the Home and Youth Affairs Bureau and the Family Council launched a five-year Funding Scheme on the Promotion of Family Education on October 14, 2024, with an annual budget of $8 million. This scheme aims to subsidize community projects that focus on various themes, including new parent education and maintaining family relationships.
Lastly, starting from April 2025, government employees with children under three will receive three days of childcare leave per year per child, further enhancing family-friendly measures for civil servants.
These comprehensive policies and measures reflect the Hong Kong Government’s commitment to encouraging childbirth and supporting families, ultimately aiming to create a more conducive environment for raising children in the region.
