Over the past two months, they suffered a sharp drop in income as both their employers were hit hard by the city’s stringent curbs on businesses.

The Post examines how they and others like them will benefit from the budget measures.

Hong Kong finance chief unveils HK$170 billion budget, packed with sweeteners

1. How much less salaries tax will they pay?

The couple can save up to HK$20,000. They will benefit from a 100 per cent reduction in salaries tax in the 2021-22 assessment year, capped at HK$10,000 for each taxpayer. This measure will help more than two million taxpayers, costing the government HK$13.1 billion.

2. What tax concessions will the family enjoy?

The couple can claim the married person’s allowance of HK$264,000 each and one of them can also claim the child allowance of HK$120,000.

As Man Au supports her 62-year-old mother, she is also entitled to a dependent parent allowance of HK$50,000.

3. Will the family receive any other benefits?

They will also get a HK$1,000 household electricity tariff subsidy and more fare subsidies via the Public Transport Fare Subsidy Scheme. From May to October this year, the subsidy will be increased to a maximum of HK$500 per month from HK$400 at present.

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4. Will the family get any rates concession?

Yes, they can take advantage of the rates concession for residential properties, for as much as HK$5,000 this financial year. The measure is expected to benefit almost three million homes and cost the government HK$11.7 billion.

However, from 2023-24, owners of residential properties will be able to apply for tax rebates – where applicable – for only one self-occupied home. This arrangement will save the government HK$3.1 billion (US$397 million) on rate concessions.

5. What help is there for people without property?

People without property are entitled to a new tax reduction for renting their homes while also paying salaries tax or tax under personal assessment. The deduction is capped at HK$100,000 a year per person, and is projected to benefit about 430,000 people and cost the government HK$3.3 billion.

Robin Choi, people advisory services partner at Ernst & Young Tax Services, said the relief measure could help ease the burden of those who rent their homes, as they could enjoy a tax rebate of up to HK$17,000.

Man and Alex Au are not entitled to the tax deduction as they own a property worth more than HK$5 million.

6. Are the measures enough for middle-class families to weather the Covid-19 crisis?

Tax consultant Choi said that after various deductions, Man Au will pay about HK$9,400 in salaries tax this year while Alex will not have to pay any tax. Last year, they paid a total of HK$70,000 in salaries tax.

The couple stands to receive more than HK$85,000 in reliefs, savings and handouts this year. While welcoming the help, Man Au hoped the government would consider offering families practical help such as school fee waivers for nursery and kindergarten education and more subsidies for utilities. They spend about HK$4,000 a month for their daughter in a nursery.

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“We need more direct and practical financial help to ease our plight in everyday life, not just some one-off sweeteners,” she said.

Choi said now that more people were working from home, the government should consider tax deductions for those setting up home offices, allowing them to claim for equipment expenses, and electricity and internet services bills, for example.