Welcoming a new baby brings joy, and costs. Confinement services, recovery support and baby care can add up quickly. Budget 2027 gives new parents some help by bringing postnatal care into the personal medical tax relief.
What changed
The existing medical treatment relief is being reclassified as health and well-being relief. The overall limit stays at RM10,000. Budget 2027 adds two new items inside that limit:
- Postnatal care services, up to RM3,000. This covers qualifying services provided by a confinement centre or a qualified individual.
- Breastfeeding equipment, up to RM1,000. This covers qualifying purchases for children aged two and below, paid for by the taxpayer or spouse.
The changes are expected to apply from the 2027 year of assessment. For services and purchases made from 1 January 2027, you would claim when you file in 2028.
Not a separate allowance
The RM3,000 and RM1,000 are sub-limits within the RM10,000 overall cap. They do not add RM4,000 on top of it. If your other medical expenses are already close to RM10,000, the new items may not increase your total claim. Families with lower existing medical claims will see the benefit most.
What else sits under the health and well-being relief?
The relief already covers expenses such as treatment for serious illnesses, fertility treatment, vaccinations, dental care, medical examinations and certain diagnostic tests. It also covers assessment, early intervention and rehabilitation for children aged 18 and below with learning disabilities. Postnatal care and breastfeeding equipment now join this list.
Who can claim?
Postnatal care and breastfeeding equipment expenses are for new parents. The breastfeeding equipment must be for a child aged two or below and paid for by you or your spouse. If both spouses are taxpayers, check carefully who paid and who should claim, so the same expense is not claimed twice.
How much could it save?
Relief reduces chargeable income, not tax directly. As an illustration, not an official figure: if you claim the full RM3,000 for postnatal care and your top bracket is 18%, the tax saving is about RM540 (RM3,000 × 18%). The saving is higher for those in higher brackets, and lower if existing medical claims have already used up the RM10,000 cap.
Conditions to watch
The slide’s caution applies: the relief is subject to terms and conditions set by the government. In particular, watch for guidance on what counts as a qualifying confinement centre or “qualified individual”, what documents are needed, and whether the services must be registered or licensed.
What to do now
- Choose a recognised provider. Where possible, use a registered confinement centre or a qualified professional, and ask for official receipts.
- Keep detailed invoices. They should show the provider’s details, the service, the dates and the amount.
- Keep proof for equipment purchases. Save receipts for breastfeeding equipment, and note your child’s date of birth.
- Wait for LHDN guidance before you finalise your YA 2027 claim.
Speak to AdrianYeo Tax
Family milestones are easy to plan around when your tax position is clear. Our chartered accountants can help you work out what you can claim and keep your documents in order.
This article is for general information only and does not constitute tax advice. Measures are based on Budget 2027 announcements and may change when the legislation is finalised. Please consult a tax professional about your specific circumstances.
