00:00M40. Here's what Budget 2027 could mean for you.
00:04And for once, you might catch a little break.
00:08Firstly, Budget 2027 is Malaysia's biggest spending plan ever,
00:14with more than RM500 billion allocated.
00:17And there are tax changes that could benefit you.
00:21For the first time in 16 years,
00:24individual income tax relief is going up from RM9 to RM12,000,
00:29Income tax rates are also being cut by one percentage point for two income brackets.
00:36Those with chargeable incomes between RM70 and RM100,000 will pay 18%,
00:42while those earning between RM100 and RM150,000 will pay 24%.
00:49So, how much difference could this make?
00:52The government estimates that around 5 million taxpayers could enjoy up to RM1,600 in additional disposable income.
01:03And that's not quit your job and travel the world money.
01:08But it could help cover groceries, bills or that monthly car instalment.
01:13Medical relief will also include postnatal care,
01:18while care expenses for parents and grandparents are expanded beyond healthcare.
01:24Even your lifestyle claims are getting an update,
01:27covering AI software subscriptions, pet vaccinations and adopting pets from registered centres.
01:35Basically, some of your everyday spending could qualify for your tax relief.
01:40From January 1st next year, service tax on elderly care services will also be cut to 6%,
01:48with an exemption for services charging annual fees of up to RM96,000.
01:54But it's not just M40s benefiting.
01:58SARA and STR8 is also being increased to RM16 billion this year.
02:04Prime Minister Datuk Sri Anwar Ibrahim has said that this is a budget for the future generations,
02:11with some observers saying it's a budget for the Poles.
02:16Of course, these changes won't magically make the cost of living cheaper overnight,
02:21but for millions of taxpayers, a little extra breathing room could go a long way.
02:27And if adulting already feels like a subscription you never signed up for,
02:33paying a little less tax could mean some extra breathing room.
02:46ASSISTANCE
