Small Change

Tax relief cap drives home important message

With $80,000 limit in place, taxpayers should analyse all reliefs to optimise tax savings

It is tax filing season and some taxpayers are, to their dismay, facing a higher tax bill, the result of a new $80,000 cap on personal income tax relief.

First announced in Budget 2016, the measure applies from Year of Assessment 2018. It caps the total amount of all tax reliefs claimed, including any relief on Supplementary Retirement Scheme (SRS) contributions and other reliefs like the Working Mother's Child Relief (WMCR).

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A version of this article appeared in the print edition of The Sunday Times on April 08, 2018, with the headline 'Tax relief cap drives home important message'. Print Edition | Subscribe