Budget 2027 expands tax relief for caregivers and education, but savings may be modest
The 2027 budget raises individual tax relief to RM12,000 and widens deductions for child tuition and elder-care costs, though many say the benefit will be limited.
Budget 2027 proposes to lift the individual income tax relief ceiling from RM9,000 to RM12,000 and to extend deductible expenses to cover children’s tuition in STEM, arts, languages and religious studies, as well as all costs linked to caring for elderly parents or grandparents. The government aims to ease the financial strain on the so-called “sandwich generation” juggling child-raising and elder-care. Interviewees such as Jasbir Bhar, who spends nearly RM30,000 a year on a domestic helper for her 88-year-old father, argue the relief is far below actual costs, while Salma, a single mother in the Klang Valley, welcomes any additional support.
Private-sector executive Carol Tee estimates a potential tax saving of about RM1,100, and Dr Sarah Shaik Abdul Karim foresees roughly RM2,000 in relief. Additional suggestions include raising the EPF contribution cap and providing means-tested grants. Retired air-force veteran Rafli Abd Latiff notes the proposals have little effect on retirees but appreciates the increase in early schooling aid.
Why it matters
The tax changes affect millions of Malaysian families balancing child and elder care costs.
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