Finance
2026 Policy Address:
Livelihood and Economy Measures
Gary Chung（FinKit Editor-in-Chief） · Published：September 17, 2026
The Chief Executive delivered his fifth Policy Address on 16 September, titled “Focus on the Long Term, Reform for a New Chapter”, alongside Hong Kong’s first five-year plan (2026–2030). The report runs on two tracks: five development opportunities (talent, industry, corporate investment, institutional safeguards, international co-operation) and 25 livelihood areas including youth employment, education, birth incentives, housing, healthcare, elderly care, SME support and labour protection. Housing measures (the 95% HOS mortgage and the stamp duty cut) are covered separately; this article covers the rest of the livelihood and economy measures.
At a glance: six areas and what they mean for you
| Area | Headline measure | When |
|---|---|---|
| Birth | Second child bonus rises from HK$20,000 to HK$30,000 | Births on or after 16 Sep 2026 |
| Elderly | Community care service vouchers +2,000 to 18,000 | FY 2027-28 |
| Youth | 30,000 youth jobs and internships (two years) | Within this year |
| SMEs | BUD Fund coverage extends to Uzbekistan and Qatar | Phased |
| Health / welfare | Community pharmacies, drug formulary, two more community living rooms | Progressive |
| Daily economy | Faster Payment System links to UnionPay | Within this year |
Birth incentives: 11 measures, weighted towards a second child
Eleven measures form the birth-incentive package. The key change is that, for the first time, support is explicitly higher for families having more than one child.
- Baby bonus: the HK$20,000 Newborn Baby Bonus continues for three years. For a second or subsequent child born on or after 16 September 2026, the bonus rises to HK$30,000 for three years.
- Child allowance: for the same second and subsequent children, the allowance rises from HK$140,000 to HK$160,000; the additional allowance in the child’s first two years also rises from HK$140,000 to HK$160,000.
- Property stamp duty: eligible families buying a residential property within one year before or two years after a birth can have up to HK$20,000 of stamp duty waived.
- HOS mortgages: from the next Home Ownership Scheme sale, white-form families with a newborn can borrow up to 95% of the price. (See our separate article for the down-payment and repayment maths.)
- Fertility treatment: the Hospital Authority will progressively raise IVF places to 1,900 a year over three years.
- Pre- and post-natal support: the Primary Healthcare Commission will roll out free pre-conception, antenatal and post-natal group services at district health centres and stations; the Family Planning Association will launch a healthy-fertility campaign this year.
- Childcare places: three additional aided standalone childcare centres, adding about 1,800 day-care places for children aged zero to three by end-2030.
- After-school care: from the 2027/28 school year the After-School Care Programme becomes regularised with no quota, with stronger professional support (including a pick-up service) for pre-school care.
Note: the higher bonus and allowance apply only to a second or subsequent child. Legislative and administrative steps are still required, so details may change.
Elderly care: more vouchers, more facilities, mobile JoyYou Card
| Item | Increase | When |
|---|---|---|
| Community care service vouchers | +2,000 to 18,000 | FY 2027-28 |
| Residential care service vouchers | +1,000 to 8,000 | FY 2027-28 |
| Aided day care facilities | 5 new, about 200 places | Phased |
| Neighbourhood elder centres | 5 new, serving about 5,000 people a year | Phased |
| Residential care homes | 3 new, about 400 places | Phased |
| Mobile JoyYou Card | Easier access for seniors | By end of 2026 |
Separately, HK$100 million is set aside for an Elderly Technology Promotion Scheme to help local tech firms develop care products, and intergenerational support networks will be established.
Youth employment: 30,000 jobs and internships
The government and the business sector will launch a two-year 30,000 Youth Jobs and Internship Scheme covering commerce, innovation and technology and start-ups, construction, and financial services. An International Youth Talent Exchange Basewill be established, and a new HYAB–United Nations Youth Leadership Internship Scheme will offer placements at UN bodies.
SME support: ten measures, focused on markets and AI
- Markets: the BUD Fund’s eligible coverage extends to Uzbekistan and Qatar; the HKTDC will step up support for online exports; the Trade and Industry Department will back brand development; and the HK Export Credit Insurance Corporation will extend 20 free buyer credit assessment services for one year.
- Financing: stronger Commercial Data Interchange links to speed up bank lending decisions; the HKMA will work with Shanghai on trade-data connectivity and link to ASEAN single windows so banks can approve SME loans from one place; and SMEs can get subsidies to value intellectual property for financing.
- AI and digital: more targeted BUD funding for AI projects; Cyberport matching grants for AI and cybersecurity solutions; the Productivity Council will consolidate advisory services through its Digital DIY platform; and subsidies for logistics technology that connects to the Port Community System.
Setting up or running a business? FinKit’s startup cost calculator and profits tax calculator can help you size up costs and tax.
Healthcare, mental health and community services
- Stronger primary healthcare, an optimised public hospital system, and tighter professional regulation.
- Eleven mental health measures, including continuing the three-tier school mechanism, more integrated community mental health centres, and the Mind Health Pilot Scheme.
- A community pharmacy scheme and a community drug formulary that will expand over time.
- Two more community living rooms.
- Progressive rollout of eHealth+, and work towards a third medical school.
Workers and the daily economy: rider protection, FPS to UnionPay
- Labour protection: new legislation to protect delivery riders, plus cross-departmental action against illegal labour. Measures also support carers, persons with disabilities, ethnic minorities and women.
- Payments: the Faster Payment System will connect to UnionPay within this year, easing local and cross-border retail payments.
- City management: an “AI City Brain” platform linking works, environment, transport and emergency data; and a revamped 1823 service.
- Other works: 51 flood prevention projects; faster replacement of ageing water mains (about 70 km a year over five years); reform of old-building maintenance; and a three-tier mechanism for building management disputes.
Adding it up: what a family of three actually gains
| Item | Amount | Condition |
|---|---|---|
| Second-child bonus | HK$30,000 | Born on or after 16 Sep 2026 |
| Child allowance | HK$160,000 | Second and subsequent children |
| Stamp duty relief | Up to HK$20,000 | Buy within 1 year before / 2 years after birth |
| HOS mortgage cap | Up to 95% | White-form families with a newborn |
The real tax saving from a larger child allowance depends on your income and marginal rate — use the salaries tax calculator to model your own case. Saving long term for a child? The education fund calculator shows the monthly amount needed from age 0 to 18.
What is immediate, and what waits
- Relatively immediate: the higher second-child bonus and child allowance (dated from the Policy Address), the 30,000 youth jobs scheme (this year), the mobile JoyYou Card (by end of 2026), and FPS–UnionPay (this year).
- One to two years: elderly care vouchers (FY 2027-28), regularised after-school care (from 2027/28), and more research postgraduate places (by 2030/31).
- Subject to legislation: stamp duty relief, child allowance changes, rider protection and the 5% or half-rate tax for key industries — commencement dates follow the Gazette and department announcements.
FAQ
Q: Does the HK$20,000 baby bonus apply to a first child?
Yes, the HK$20,000 bonus continues. The increase to HK$30,000 applies only to a second or subsequent child.
Q: Is the HK$160,000 child allowance for every child?
No. It applies to a second or subsequent child born on or after 16 September 2026, including the additional allowance in the first two years.
Q: Is the stamp duty relief a lower rate or a fixed amount?
It is a waiver of up to HK$20,000 of duty. The purchase must fall within one year before or two years after a birth; the Inland Revenue Department’s published rules govern the calculation.
Q: How does this relate to the five-year plan?
The five-year plan (2026–2030) is the blueprint; the Policy Address is this year’s list of implementing measures. Both were released on the same day.
Related reading
For the housing measures — the 95% HOS mortgage, stamp duty relief and Northern Metropolis supply — see Policy Address 2026: HOS 95% Mortgage, HK$20,000 Duty Cut. Building your financial base first? Start with How big should your emergency fund be?
See what these measures mean for your own numbers
Disclaimer: this article is for general information only and is not tax, investment or financial advice. Policy content is drawn from the official summary and press release of the 2026 Policy Address and Hong Kong’s first five-year plan (2026–2030) published on policyaddress.gov.hk and info.gov.hk. Many measures carry conditions and timetables, and some require amending legislation, so details may change. Actual amounts, eligibility and commencement dates are subject to the latest government announcements. Written 17 September 2026.