To avoid an over-dependency on FDWs, the following changes have been proposed which will take effect from 1 April 2019:
- The monthly levy for the first FDW who is employed without levy concession will be raised from $265 to $300.
- The monthly levy for the second FDW who is employed without levy concession will be raised from $265 to $450.
- The qualifying age for levy concession under the aged person scheme will be raised from 65 to 67 years. However, all households with persons aged 65 and 66, which are enjoying or have enjoyed the levy concession under the aged person scheme before 1 April 2019, will continue to pay the monthly levy rate of $60 on and after 1 April 2019.
Following the proposed increase of the amount of the FDW levy, the tax relief allowable for Foreign Maid Levy is expected to increase accordingly.