Prime Minister Joseph Muscat this morning rolled out a new set of pledges centred around the family, the elderly and removing persons from living at risk of poverty.

Among the proposals announced, one of the most striking was that of allowing couples who have gone through a separation or a divorce, where one member is paying maintenance fees to the other in order to contribute in expenses of raising a child, the former couple would be taxed as though they were still a couple, rather than the higher tax rate for single persons.

Dr Muscat explained that despite the couple splitting up, they are still supporting a family through child expenditure, and therefore it does not make sense for that couple to be taxed as though they are two single persons.

A €300 allowance was also announced for persons who have just given birth or adopted a baby, as well as a baby starter kit containing necessary products for the baby’s first days of living.

Acknowledging the hefty expenditure of adoption, Dr Muscat announced that a grant would be given at a maximum of €10,000 for legal fees. A rebate has also been proposed for travel expenses, because if a couple wishes to adopt from another country, there would be at least one court hearing in that country and some other procedures requiring the couple to be there.

For the first time an increase in foster care allowance has been proposed. This increase in allowance translates to €100 per week from €70, and is applicable to any institution, home or family that is fostering a child.

Turning to a measure that is aimed at helping families come out of poverty, Dr Muscat said: For families with children who are under 16-years-old, where at least one parent is working full-time and has at least a minimum wage, between the wage together with social benefits, the government is giving assurances that the income will be more than the levels established by Caritas.

Dr Muscat pledged an oversight body, which would be launched in collaboration with the University of Malta and the faculty of Social Wellbeing. This body would carry out social impact reports every three years in order to ascertain the progress of Maltese and Gozitan families that has been made through the various measures and incentives proposed.

 

Lastly, it was announced that financial incentives would be provided for parents who start a private pension fund for their children who are under 18 years-old. The maximum amount of contributions that would be eligible for the incentive is that of €2,000, and an accompanying tax credit would be granted.