Forum: Make CPF top-up scheme more effective in helping loved ones
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.
- by autobot
- March 26, 2023
- Source article
Publisher object (23)
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 scheme is the Central Provident Fund (CPF) top-up scheme. A CPF member can do 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.