Policy Address 2026: Hong Kong to extend baby bonuses, increase child allowance

Hong Kong's leader, Chief Executive John Lee, unveiled a series of measures during the city's annual Policy Address to tackle the record-low birth rate. The primary focus is on extending the newborn baby bonus scheme, increasing tax allowances for families with newborns, and expanding subsidized daycare facilities.

The baby bonus scheme, which offers HK$20,000 for first-time parents and HK$30,000 for subsequent births, will be extended for an additional three years, instead of expiring next month. As of August 31, the government had disbursed HK$1.56 billion in payouts to 77,709 applicants.

Families with newborns will also benefit from a higher child allowance, with tax deductions for second and subsequent children rising to HK$160,000 from HK$140,000. This increase applies to the first two years following a child's birth. Additionally, the government will provide HK$20,000 in stamp duty relief for families purchasing a home within the first two years after childbirth.

To encourage homeownership, families with newborns will receive priority in the allocation of government-subsidized flats. Moreover, the maximum loan-to-value ratio for residential property mortgages will be raised from 90 to 95 percent.

Lee also announced that public hospitals will increase their quotas for in vitro fertilization services to 1,900 per year over the next three years. In line with this, three more subsidized daycare centers for children under three will be built by the government.