How working mums can reduce their tax bill

43-year old Boon Hui’s ideal weekend is spent playing badminton or catching a movie with her family. As a working mother to two teenage boys, these weekends are precious to her as her 14 and 16 year-old sons sometimes prioritise going out with their friends over family bonding.

Boon Hui is no stranger to keeping a number of plates spinning as she works in the fast-paced media industry. “For women, we need to juggle both work and family. It’s always been tough and will get increasingly so with growing kids and aging parents,” said Boon Hui.

For busy working mothers like Boon Hui who hustles to maintain the family, inflation coupled with the rising cost of living means that she has to keep a close watch on her family expenses. Every bit counts. During Tax Season 2024, the tax reliefs for working mothers  help shave a little off the tax bill.

Boon Hui has claimed reliefs including the Working Mother’s Child Relief, Qualifying Child Relief and the Parenthood Tax Rebate.  The Parenthood Tax Rebate and the tax reliefs have effectively reduced her tax bill to zero for the past years.

Her parents who live nearby manage her teenage boys while she is at work: “My parents are a big help. They cook or tar pau (take-out) daily meals for my sons and ensure their general well-being. The Grandparent Caregiving Relief is another relief which I have tapped on to reduce the amount of assessable income.”

All the tax goodies lighten Boon Hui’s financial load whilst juggling her home and work responsibilities. However, there is a cap of $80,000 for the reliefs claimed on personal income tax. The relief cap, in place since Year of Assessment 2018, ensures a fair and progressive fiscal system where high-income earners pay more taxes. About 99 per cent of taxpayers continue to enjoy their tax reliefs without being affected by the cap. These include about 9 out of 10 claimants of the Working Mother’s Child Relief. (Source: Ministry of Finance)

Boon Hui’s employer offers a flexible work schedule which lets her work from home on some days depending on work demands. Coupled with the family-friendly tax policies which support working mothers, Boon Hui is satisfied with her work-life situation which lets her spend time with the family and also cope with work.

Find out more tax-saving tips for working mums and also families here.

¹ As part of the review of the Government’s support for Marriage and Parenthood, (PDF, 352KB) with effect from Year of Assessment 2025, the Working Mother's Child Relief will be changed from a percentage of an eligible working mother’s annual earned income to a fixed dollar tax relief 

² As part of the review of the Government’s support for Marriage and Parenthood (PDF, 352KB), Foreign Domestic Worker Levy Relief will lapse for all taxpayers from Year of Assessment 2025