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Breaking down Budget 2020: A helping hand for the present and future

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Deputy Prime Minister Heng Swee Keat unveiled the Budget in Parliament yesterday with measures to deal with challenges such as the coronavirus outbreak and long-term economic development. Here is a quick breakdown

For households during coronavirus outbreak

Up to $300

  • Singaporeans aged 21 and older will receive a one-off cash payout of $100, $200 or $300 – depending on their income last year and home ownership – this year

$100

  • Parents with one or more Singaporean children aged 20 and younger this year will each get an extra $100 in cash.

$100

  • Singaporeans aged 50 and older this year will receive a $100 top-up to their PAssion cards.

$100

  • Singaporeans aged 21 and older who live in one- or two-room Housing Board flats and do not own more than one property will receive $100 in grocery vouchers this year and next year.
  • All eligible HDB households will also get double their regular GST Voucher – U-Save rebate in the 2020 financial year, which ends in March 2021, through a one-off special payment.
  • Eligible households with five or more members will receive an extra rebate which means they will receive 21/2 times their usual rebate.
  • Eligible Singaporean households in HDB flats will also receive rebates to offset between 11/2 and 31/2 months of service and conservancy charges over the year.

For senior citizens

3%

  •  Basic Retirement Sum (BRS) to increase by 3 per cent for the next two cohorts. 

$93,000

  •  Minimum retirement amount for those turning 55 in 2021 and 2022 will be $93,000 and $96,000 respectively.

$600

  • Lower- to middle-income Singaporeans aged 55 to 70 who do not have the necessary BRS will have their CPF Retirement Account top-ups matched dollar-for-dollar up to an annual cap of $600, from 2021 to 2025.

20%

  • For lower-income seniors, quarterly cash payouts will be increased by 20 per cent from January 2021. For those living in smaller flats, payouts will increase from $750 to $900 for each quarter.
  • Eligibility criteria for Silver Support will be expanded.

For families

$12,000

  •  Income ceiling for the additional subsidy for pre-school and Kindergarten Fee Assistance Scheme raised to $12,000 a month.

$2 billion

  • Support for pre-school children to be doubled from $1 billion in 2018 to over $2 billion a year over the next few years.

$1,000

  • The Ministry of Education Financial Assistance Scheme annual bursary quantum for pre-university students will be raised from $900 to $1,000.

$200

  • Full-time Institute of Technical Education students from low- and middle-income households will see an increase in bursary quantum of up to $200 a year.
  • Students from lowest income tier households will receive full subsidy of school fees and cash bursary.

For businesses

HELPING WITH CASH FLOW

$25%

  • Corporate income tax rebate at the rate of 25 per cent of tax payable, capped at $15,000 for each company, will be granted for the tax year of assessment 2020.
  • The rebate will benefit all tax-paying companies.
  • Several tax treatments under the corporate tax system will also be enhanced for one year to ease cash flow for companies.

HELPING TO DEFRAY WAGE COSTS

$4 billion

  • Two schemes – the new Jobs Support Scheme and Wage Credit Scheme – which will be enhanced will help support enterprises. They will also help workers stay employed as part of a larger $4 billion Stabilisation and Support Package.

8%

  • Government will offset 8 per cent of Singaporean and permanent resident employees’ wages, capped at $3,600 for each employee monthly, for three months.

$5,000

  • Monthly wage ceiling will be raised from $4,000 to $5,000 for qualifying wage increases in 2019 and 2020.

20%

  • Co-funding levels will be increased by five percentage points to 20 per cent for 2019 and 15 per cent for 2020.

HELPING THOSE MOST AFFECTED BY CORONAVIRUS OUTBREAK

30%

  •  30 per cent property tax rebate for this year for some components of licensed hotels and serviced apartments, as well as prescribed meetings, incentives, conventions and exhibitions venues.

15%

  • 15 per cent property tax rebate for international cruise and regional ferry terminals.

10%

  •  10 per cent property tax rebate for the integrated resorts.

$112 million

  • $112 million Aviation Sector Assistance Package to also provide relief to companies affected by the outbreak.
  • Rental waivers for hawkers operating in National Environment Agency-managed hawker centres and markets and commercial tenants of government agencies.
  • 15 per cent property tax rebate to those operating in qualifying commercial properties. Landlords are urged to pass the rebate on to their tenants.

For communities

$200 million

  •  The Tote Board and Government will provide $200 million to the Community Capability Trust in FY2020 and match up to $150 million in funds raised over the next 10 years, for the social service sector.

$750 million

  •  $750 million to the ElderCare Fund.

$500 million

  • $500 million to the ComCare Fund.

$200 million

  • $200 million to the MediFund.

For the environment

$5 billion

  •  Coastal and Flood Protection Fund will be set up with an initial injection of $5 billion.
  • HDB flats will also have a new Green Towns Programme, to reduce energy consumption, recycle rainwater, and cool the towns.
  • Government aims to phase out all vehicles with internal combustion engines by 2040.
  • Rebate of up to 45 per cent on the additional registration fee for those buying fully electric cars and taxis. This will start from January next year, for three years.
  • By 2030, the Government aims to deploy up to 28,000 public charging points for electric vehicles, up from 1,600 currently.
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