What You Should Know About The Singapore Budget 2020!
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TOP 10 HIGHLIGHTS
1. GST Not Going Up In 2021
The increase in the GST rate by 7% to 9% will not be implemented in 2021. *Finance Minister, Mr Heng stated that it will eventually increase to 9% by 2025.
2. Education Support
Pre-university students from lower-income families will get an extra $100 under the Education Ministry's Financial Assistance Scheme, with the quantum raised from $900 to $1000.
*All students will also get higher transport subsidies.
*For secondary school students, more school meal subsidies.
*Full-time Institute of Technical Education (ITE) students from the lowest-income families will now receive a 100% fee subsidy from Academic Year 2020, cash bursary for students from low and middle-income households, quantum increase of up to $200 a year.
3. Care And Support Package
Cash payout of $300, $200, $100 for Singaporeans aged 21 and above.
$100 cash payout for adult Singaporean with at least one Singapore child aged 20 and below
Grocery vouchers for needy Singaporeans ($100 each year for the year 2020 and 2021)
Double the regularGST Voucher - U-Save rebate in the 2020 financial year thorugh a one-off special payment. *Eligible household with 5 or more members will receive 2.5 times their usual rebate.
Eligible Singaporean households living in HDB flats will receive rebates to offset between 1.5 and 3.5 months of service and conservancy charges over the year.
$100 top-up Passion Card for Singaporeans above 50 years old
All Singaporeans aged 21 and above who live in one or two room HDB flats and do not own more than one property will receive $100 in grocery vouchers in 2020 and 2021.
Workfare Special Payment for Singaporeans employees and low wage workers and self-employed persons aged 35 and older who received Workfare Income Supplement (WIS) payments in 2019.
4. SkillsFuture
In order to encourage Singaporeans to make use of the current economic slowdown to learn new skills:
$500 Skillsfuture top up for every Singaporean aged 25 and above from 1 October 2020.
Additional $500 SkillsFuture Credit will be given to 40-60 years old.
Employers will get $10,000 under the new SkillsFuture Enterprise Credit to defray out-of-pocket costs of business transformation, job redesign and skills training by 90%.
5. Battle Against Climate Change
A Costal and Flood Protection Fund will be set up with an initial injection of $5 billion, to be topped up when possible.
HDB flats will also have a Green Towns Programme to reduce energy consumption, recycle rainwater, and cool the towns.
Government aim to phase out all vehicles with internal combustion engines by 2040.
Starting from January 2021 - 2023, Additional incentive for early adoption of electric vehicles (EVs), with a rebate of up to 45% on additional registration fee for those buying fully electric cars and taxis. *EVs and some hybrid vehicles will be taxed less, with a revision in tax methodology for cars from January 2021.
By 2030, the government aims to deploy up to 28,000 public charging ports for EVs.
A lump-sum tax built into the road tax schedule for EVs, while technology to tax by distance is being developed.
6. Schemes To Support The Elderly
The Central Provident Fund (CPF) will have a Matched Retirement Savings Scheme from 2021 to 2025, for lower to middle income Singaporeans aged 55 to 70 who have not been able to set aside the prevailing Basic Retirement Sum.
The government will match every dollar of cash top-up made to their CPF Retirement Account, up to an annual cap of $600.
Silver Suppoty Scheme quarterly payouts to be raised by 20%.
7. Stabilisation And Support Package
Two schemes - the new Jobs Support Scheme and the Wage Credit Scheme will be enhanced, helping to support enterprises and workers to stay employed.
Jobs Support Scheme - Government will offset 8% of Singaporean and Permanent resident employee's wages, capped at $3,600 per employee monthly fee, for 3 months.
Wage Credit Scheme - Will be enhanced which supports enterprises embarking on transformation efforts and encourages employers to share productivity gains with workers by co-funding wage increases. *Monthly wage ceiling will be raised from $4,000 to $5,000 for qualifying wage increases in 2019 and 2020.
8. Helping Businesses With Their Cash Flow
A corporate income tax rebate at the rate of 25% of tax payable, capped at $15,000 per company, will be granted for the tax year assessment 2020.
Enterprise Financing Scheme's Working Capital Loan, will be enhanced for one year from March 2020, helping small and medium sized enterprises to access financing for working capital needs.
Maximum loan quantum will be raised from $300,000 to $600,000
Government's risk share will be increased to 80%.
9. Extra Support For Sectors Most Affected By Coronavirus
5 Sectors directly hit by the coronavirus outbreak namely Tourism, Aviation, Retail, Food Services and point-to-point transport services will receive additional support under the Adapt and Grow initiative for their operating costs and cash flow, as well to retain and re-skill workers.
Funding support duration for re-skilling for these 5 sectors wil be extended from the current 3 months to a maximum of 6 months.
30% property tax rebate for 2020 will be granted for some components of licensed hotels and serviced apartments, as well as MICE venues.
International cruise and regional ferry terminals will receive a 15% property tax rebate.
Integrated resorts will receive a 10% property tax rebate.
Government will also work with participating financial institutions to introduce a Temporary Bridging Loan Programme for 1 year to provide additional cash-flow support for tourism sector enterprises. *Includes airlines, companies in the cargo industry, other airport stakeholders such as retail and food and beverage tenants at Changi Airport -- which will also receive a 15% property tax rebate.
Rental waivers for hawkers operating in National Environment Agency managed hawker centres and markets and commercial tenants of government agencies.
15% property tax rebate will be granted to those who operate in qualifying commercial properties. * Landlords are urged to pas the rebates on to their tenants.
$112 million Aviation Sector Assistance Package, will provide relief to companies affected by the coronavirus outbreak.
10. Enhancements To Support Economy's Transformation And Growth
$8.3 billion will be allocated over the next 3 years to bolster the Singapore economy's transformation and growth.
An additional $300 million enhancement of Startup SG Equity to catalyse private investment in Singapore-based deep-tech start-ups in key emerging sectors such as advanced manufacturing and agri-food technology.
Market Readiness Assistance scheme which helps companies in their internalisation efforts will be enhanced, including an extension of the 70% support level for another three years until end-March 2023.
An Enterprise Transform Package (including the Enterprise Leadership for Transformation programme) will be launched, to support business leaders of promising SMEs in achieving growth. *The government aims to support business leaders from 900 enterprises over the next 3 years and will work with institutes of higher learning, banks and other industry experts to do so.