Increasing Income Threshold Qualification for Parent Relief Claims

Mr Zainal Sapari asked the Minister for Finance whether the dependant's annual income threshold of $4,000 can be increased for taxpayers to qualify for Parent Relief claims in order to encourage senior citizens to seek part-time employment.

To encourage and support the employment of seniors, we have put in place measures, including the Special Employment Credit, which is paid to employers of older workers, WorkPro which helps employers redesign jobs and workplaces for older workers, and the Workfare Income Supplement which tops up the cash wages and Central Provident Fund (CPF) of older low-wage workers.

Tax reliefs, such as Parent Relief, Spouse Relief and Qualifying Child Relief, are given to taxpayers to recognise their efforts in supporting their family members.

These reliefs are intended for circumstances where the dependant is handicapped or is not earning any income.

As some dependants may derive a small amount of incidental income, our approach seeks a balance by setting the dependant’s income threshold at $4,000 a year.