TAX BENEFITS FOR THIRD CHILD

Dr Jennifer Lee asked the Minister for Finance (i) at what income level has a mother to be for the tax benefits for a third child to match or exceed the monetary value of eight weeks of her paid maternity leave; and (ii) what is the number of women in this group.

Dr Richard Hu Tsu Tau: All taxpaying mothers of any income level can claim a "Further Tax Rebate" (FTR) at 15% of her earned income. The Employment Act allows eight weeks of paid maternity leave only for the first two children. The FTR percentage is roughly equivalent to eight weeks of maternity leave. The FTR is available for the third and fourth children. It is meant to encourage working married women to have more children if they can afford it. The rebate quantum can be claimed over a period of 9 years. It should also be noted that there are tax benefits in addition to the FTR for those who can afford more children, such as the S$20,000 Special Tax Rebate and Enhanced Child Relief for the third child.