Singapore Budget 2019 Highlights

Finance Minister Heng Swee Keat had every Singaporean’s full attention for 2 hours the day gone by afternoon.

The Budget 2019 measures focal point on “Building a strong, united Singapore”, with Mr Heng citing 5 long-term domestic challenges to address: ageing, social mobility, inequality, monetary transformation, and climate change.

1. Bicentennial bonuses – up to $300 GST vouchers & additional 10% WIS Let’s start with the appropriate stuff – the Bicentennial Bonus angbao from the gahmen!

The most talked about one is the each year GST voucher, which is a permanent scheme began in 2012 to assist lower- and middle-income households with the rising GST costs. This year, about 1.4 million two Singaporeans will receive up to $300 in GST voucher-cash (also called Bicentennial Payment).

Those eligible for Workfare Income Supplement (WIS) payments will also acquire a Workfare Bicentennial Bonus – they’ll receive an additional 10% of WIS in cash, with a minimum fee of $100. This will be for work accomplished in 2018.

Additionally, there will be $200m set apart for the Bicentennial Community Fund, with dollar-for-dollar matching for donations made to IPCs in FY2019.

2. 50% Income tax rebate for all, however capped at $200 The handouts don’t give up there. For FY2019, the government will additionally be giving returned 50% of our private earnings taxes.

But before all you high-flying bankers and attorneys have your eyes going “ka-ching”, the rebate is capped at $200. This is so that it will frequently advantage the middle-income group, not you.

You have adequate money.

3. HDB Service & Conservancy Charges (S&CC) rebates of 1.5 to 3.5 months Woah, this one virtually received me cheering. Not due to the fact the HDB provider & conservancy charges are exquisite expensive, but due to the fact I have yet to set up GIRO and so repayments are a pain.

I’m comfortable that I’m at least getting some money returned for all the trouble.

For this, there are about 930,000 eligible households, and they will every get hold of between 1.5 to 3.5 months of S&CC rebates.

The eligibility criteria have no longer been released, but we will replace it as soon as the information receives out.

4. For seniors: $1,500 CareShield incentive, $100 PAssion Silver top-up & Merdeka Generation package enhancements The real winners of Budget 2019 are the seniors born between 1 Jan 1950 and 31 Dec 1959 – the Merdeka Generation. Here’s a list of the Merdeka Generation Package (MGP) improvements:

5% to 10% off MediShield Life premiums First of all, seniors will get increased MediShield subsidies. The subsidy will be 5% till seniors hit 75, when it will expand to 10%. For decrease and middle-income seniors, this is on pinnacle of anything existing subsidies they may already have.

$1,500 incentive if they join CareShield Life (available from 2021) If they be a part of CareShield Life, they will additionally acquire $1,500. The newly introduced $1,500 is on top of the existing $2,500 participation incentive – that’s $4,000 in total!

$100 Top-up to PAssion Silver cards & $200 Yearly Medisave top-up from 2019 to 2023 Eligible seniors will additionally acquire a yearly $200 Medisave top-up (2019 to 2023) and a one-time $100 PAssion Silver card top-up. The PAssion Silver card money can be used to pay for public transport, things to do at community clubs, and more.

Higher subsidies underneath the neighborhood health aid scheme (CHAS) Lastly, the Merdeka Generation’s CHAS subsidies will be greater than that of the blue CHAS cardholders, and will be given to all and sundry in the Merdeka Generation (regardless of income). They will additionally get an extra 25% discount off polyclinic and professional outpatient sanatorium bills.

Eligible seniors will be notified by April. For these slightly youthful (age 50 and up in 2019) and who do no longer get Merdeka or Pioneer Generation benefits, you will receive a Medisave top-up of $100/year for 5 years.

5. $1,000 CPF top-up for seniors with <$60k savings Additionally, seniors age 50 to sixty four with below $60,000 of retirement financial savings will get hold of a generous $1,000 CPF top-up.

It will go into their Special Account (age 50 to 54) or Retirement Account (age fifty five to 64). This is on top of any other focused benefits like the GST vouchers, Merdeka Generation Package, and WIS enhancements.

6. Higher subsidies for beneath the community health help scheme (CHAS) The Merdeka Generation aren’t the solely ones getting CHAS subsidy perks.

CHAS subsidies at GP clinics will now cowl all Singaporeans with continual conditions, regardless of income. Orange cardholders (lower- to middle-income Singaporeans) used to solely get subsidies for chronic conditions, however they will now be covered for common illnesses as well.

The CHAS subsidy for complicated conditions will also be increased.

7. $150 Edusave & $500 PSEA top-ups for students If we take care of the unwell and elderly, we should additionally take care of the youth, right?

Right! But if you’re a “gi-na” hoping for greater pocket money, you’re no longer getting it. You will, however, get an more $500 in your post-secondary schooling account (students age 17 to 20). Primary and secondary college students will get $150 topped up into their Edusave accounts instead.

8. Increase in diesel duties, but up to one hundred percent road tax rebates and lower annual unique tax Drivers take note, Mr Heng also announced a a hundred percent extend in excise obligations for diesel. It’s going up from 10c to 20c per litre, which is quite significant.

To assist cushion the impact, the government will 1) permanently limit the annual Special Tax on diesel motors and taxis (by $100 and $850 respectively), and 2) provide out street tax rebates for diesel buses and goods automobile from 1 Aug 2019 to 31 Jul 2022.

It will be a full rebate in the first year (100%), 75% rebate in the second year, and 50% in the ultimate year.

9. GST expand to 9%, plus tightened GST import comfort for duty-free shopping Did you think the authorities can have the funds for to give without taking? No such thing.

As introduced in Budget 2018, the local GST will enlarge with the aid of 2 proportion points, to 9%. It’s not explicitly cited when, but it is anticipated to take impact between 2021 to 2025.

Understandably, all of us is excellent sian about this, but well, that’s what the GST voucher is without a doubt for, right? (Yup. It’s now not greater purchasing money!)

In addition, the GST import alleviation for guests will be tightened – superb TODAY (19 Feb 2019). If you spend <48 hours overseas, the alleviation is decreased from $150 to $100. If you spend >48 hours overseas, the alleviation is decreased from $600 to $500.

There’s more horrific news – the alcohol duty-free allowance has additionally been lowered. It’s now 2 litres as an alternative of three litres. Thankfully, that only kicks in from 1 Apr 2019, so you have a few more weeks to chiong.

10. Changes in foreign manpower insurance policies – DRC reduced to 35% by means of 2021 Thanks to the fast S Pass growth – it’s the best possible it’s been in 5 years! – the authorities will be adjusting the workforce quota in the provider sector.

The dependency ratio ceiling (DRC) is presently 40%, but it is to be reduce to 38% from 1 Jan 2020, and 35% from 1 Jan 2021. The sub-DRC will additionally be reduced in 2 steps: 15% to 13% from 1 Jan 2020, and 13% to 10% on 1 Jan 2021.

See lah, each and every day complain about overseas workers. Whether this new measure is suitable or bad, you decide.

On the surface, it may additionally appear like a measure to give Singaporeans extra opportunities, but if not enough locals are willing to take up carrier jobs, it may additionally simply lead to higher expenditures and greater corporations folding.

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