Forum: Make CPF top-up scheme more effective in helping loved ones
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The Government has done well in setting up schemes by which incentives are given to a member of a family who helps his loved ones financially.
One such initiative is the Central Provident Fund (CPF) top-up scheme. A CPF member can make a cash top-up to his loved one’s CPF Special/Retirement Account and/or MediSave Account, and the Government will give the person doing the top-up a tax relief equal to his top-up amount, up to $8,000.
However, to receive this tax relief, the annual income of the loved one in the previous year can be only $4,000. This income limit is also applicable when one applies for tax relief for supporting his parent.
In today’s high-inflation environment, the $4,000 income limit seems too low. The Government should consider raising this income limit so that the schemes are more effective.
Tommy Wong Sai Wai (Dr)
