Siena:Middle-income earners are set to benefit from Budget 2027 with an increase in the individual tax relief limit to RM12,000 from RM9,000, alongside RM100 under the Sumbangan Asas Rahmah (SARA) MADANI assistance, which will be disbursed twice next year to eligible adult Malaysians.
According to BERNAMA News Agency, Treasury Secretary-General Tan Sri Johan Mahmood Merican stated that the government's approach extends beyond providing cash assistance to low-income groups, incorporating measures aimed at easing the financial burden on taxpayers and middle-income households.
Under Budget 2027, this adjustment marks the first change in the individual tax relief limit in over a decade, allowing eligible taxpayers to reduce their taxable income and increase disposable income. The scope of tax relief has been expanded to include postnatal care and children's classes or tuition in STEM, arts, languages, and religion, subject to specified limits and conditions. Additionally, sports-related tax relief now covers sports shoes up to RM300, while lifestyle tax relief includes AI software subscriptions, pet adoption expenses from registered centers, and veterinary services for animal vaccination and neutering.
Johan elaborated that individuals who do not receive targeted cash aid can still benefit from tax adjustments and other government measures. Furthermore, 13 million Malaysians aged 18 and above, who are non-recipients of Sumbangan Tunai Rahmah (STR), including the M40 group, will receive SARA MADANI assistance of RM100 twice in 2027, before Aidilfitri and in conjunction with the 70th National Day. This aid is intended to help the public cover part of their daily essential expenses.
In the housing sector, first-time homebuyers are eligible for a 100 percent stamp duty exemption for properties priced up to RM500,000. For properties priced above RM500,000 up to RM750,000, first-time homebuyers will enjoy a 50 percent stamp duty exemption on the remaining value above RM500,000, subject to specified conditions.
These measures reflect the government's strategy to address living cost pressures through a combination of direct assistance, tax relief, and homeownership support. Prime Minister Datuk Seri Anwar Ibrahim, also the Finance Minister, tabled Budget 2027, which is themed "Reaching for the Skies, While Anchored on Our Values," with a government allocation of RM459.8 billion. This is supported by investments from government-linked investment companies, public-private investments, and federal statutory bodies, bringing the total value to RM510 billion. The budget aims to translate economic growth into tangible public benefits through better wages, efficient assistance, fiscal discipline, and moves towards higher-value industries.