Family and elderly: tax exemptions, child bonus and baby starter kit

Tax exemptions, financial assistance to those who adopt, child bonuses and baby starter kits are amongst the list of proposals being put forward by the Labour Party for the family and the elderly.

The proposals vary and include proposals to amend tax computation  in cases where a couple is separating or divorcing.

The Labour Party is also proposing to help parents setup a fund to help their children save up for their private pension, until they reach the age of 18. In this case, parents can contribute to up to €2,000 and will benefit from a tax credit.

Addressing a press conference at the BOV Adventure Park in Ta’ Qali, Prime Minister and Labour leader Joseph Muscat and Cabinet members Michael Farrugia and Justyne Caruana said that the proposals make up one of the most social packages ever presented in the country’s history.

The PL is proposing:

• 15% final withholding tax exemption, up to €1,000, on investments by the elderly
• The bonus to persons who have retired, but didn’t pay enough N.I. will increase up to €300 and will be paid even after the age of 75
• Through PPPs, the government will increase 500 beds for the elderly in Gozo and other projects in Mqabba and Birkirkara
• Continue the investment in public homes for the elderly, particularly at St Vincent de Paul
• Ensure that families with children under the age of 16, have an income – between salary and social benefits – which is higher than the minimum levels established by Caritas
• Strengthen LEAP services to help families get back on their feet
• Together with the University of Malta, an ‘Oversight Body’ will be set up to carry out progress reports every three years on families
• Every mother that gives birth to a child, or adopts, will receive a child bonus of €300
• Expectant mothers will be given a baby starter kit
• The foster care allowance will be increase to €100 a week
• Direct financial assistance, up to €10,000, to couples who wish to adopt a child • Full rebate of travel expenses
• With the help of tax credits, government to encourage parents to set up a saving funds for their children’s private pension