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S’pore’s Budget 2024: Your Roadmap to Financial Aid & Cash Bonuses

In response to concerns over the cost of living, Deputy Prime Minister Lawrence Wong unveiled significant measures during his Budget 2024 address last February 16, 2024, aimed at providing increased financial support to Singaporeans. Here’s a comprehensive timeline outlining the various cash payouts and assistance schemes slated for implementation:

APRIL
– U-Save: S$110- S$190
– S&CC Rebate: 0.5 – 1 month

JUNE
– CDC Vouchers: S$300

JULY
– U-Save: S$165-S$285
– S&CC Rebate: 0.5 – 1 month

AUGUST
– Cash Payout: S$450 or S$850

SEPTEMBER
– Cash Payout: S$200- S$400

OCTOBER
– U-Save: S$110- S$190
– S&CC Rebate: 0.5 – 1 month

NOVEMBER
– NS Life SG Credits: S$200

DECEMBER
– Cash Payout: S$200- S$600
– CPF MediSave: S$100-S$1500
– CPF RA or SA: S$1000-S$1500
– Personal Income Tax Rebate for YA 2024: Up to S$200

JANUARY 2025
– U-Save: S$165- S$285
– S&CC Rebate: 0.5 – 1 month
– CDC Vouchers: S$300

#1: ASSURANCE PACKAGE

Enhanced by an additional S$1.9 billion, the Assurance Package offers:
– S$600 in CDC vouchers distributed in June and January 2025 to all Singaporean households.
– Cost-of-living “special payment” ranging between S$200 and S$400 for eligible adult Singaporeans.
– Additional U-Save benefits totaling up to S$950 for eligible HDB households.
– An extra half-month of S&CC rebate in January 2025, totaling up to four months’ rebate for eligible HDB households.

#2: LIFESG CREDITS FOR NSMEN

All NSmen, past and present, will receive S$200 digital credits redeemable via the LifeSG mobile app. Distributed in November, these credits are valid for one year.

#3: MEDISAVE BONUS

In December 2024, adult Singaporeans aged 21 to 50 will receive a one-time MediSave bonus ranging from S$100 to S$300, based on various criteria, including age and property ownership.

#4: SINGAPORE WORKFORCE DEVELOPMENT

The introduction of the SkillsFuture Level-Up program for mid-career workers will include a top-up of SkillsFuture Credit by S$4,000 for Singaporeans aged 40 and above, starting in May. Moreover, there will be a monthly training allowance for those aged 40 and above enrolling in selected full-time courses, capped at S$3,000 per month.

#5: TAX RELIEF

The income threshold for dependant-related tax reliefs will double from S$4,000 to S$8,000 for the year of assessment 2025, benefiting more taxpayers.

#6: TAX REBATE

A 50% personal income tax rebate, capped at S$200, will be applicable for the year of assessment 2024, primarily benefiting middle-income workers.

Image Credits: unsplash.com

These initiatives underscore the government’s efforts to alleviate financial burdens and support the well-being of Singaporeans amidst economic challenges.

Sources: 1 & 2

Singaporeans Get Financial Support And Frozen Government Loans Amid COVID-19 Pandemic

As you may know, many establishments and livelihoods have been put on hold due to the Coronavirus widespread. Floating in limbo led many Singaporeans to worry about their finances, particularly their bills and household expenses. This level of uncertainty is not limited to our country. It happens all over the world! Moreover, it takes a toll on developing countries whose majority relies on daily salaries and meal allowances to survive.

The Singaporean government has put a plan into place. Last Thursday, Deputy Prime Minister Heng Swee Keat said that they “will put more cash in the hands of all families to help them cope”. The cash payouts announced in Budget 2020 will be tripled!

All adult Singaporeans will receive $300, $600, or $900 depending on their income. The amount for parents with at least one Singaporean child aged 20 and younger will receive up to $300 as compared to $100 before. The Workfare Special Payment for lower-income workers will also be increased to $3,000 in cash.

Lastly, the $100 PAssion Card top-up for seniors will be given in cash instead. They will get their money directly in their bank accounts. “This is to avoid the need to queue at top-up stations during this period,” he said.

In addition to supplementary budget, the Government will freeze all fees and charges for its services for one year from April 1. Late payment charges on Housing Board mortgages will be suspended for three months. Graduates who took up Government loans for their university or polytechnic studies will receive a loan repayment suspension for a year from June 1.

Image Credits: unsplash.com

Deputy Prime Minister Heng Swee Keat also highlighted the importance of self-help groups. Grants for self-help groups will be doubled to $20 million over two years. While, community development councils will get $75 million. As he listed various initiatives on his speech, he said that they will “protect jobs, support our workers, and protect livelihoods”. All these efforts are necessary to help the citizens bounce back during these uncertain times.

Sources: 1 & 2

Confronting Singapore’s Baby Bust With The Baby Bonus Scheme

It does not take a genius to understand how money greatly affects the Singaporeans’ approach to marriage and parenthood. The leading reasons why most Singaporeans are hesitant to make immediate marital or child-rearing plans are related to finances. The country’s population is affected due to these circumstances.

Related Article: Why Many Singaporeans Are Not Tying The Knot

Although last year’s Golden Jubilee ushered about 33,793 babies, our fertility rate remains below the replacement rate of 2.1 (i.e., the rate to maintain the population levels). This is why the Government introduces different incentives to encourage couples to have more children.

Attractive incentives include the parental leave, childcare subsidizes, and baby bonus. This article is going to focus on the beaming Baby Bonus Scheme! It was started in 2001 to provide financial assistance and support Singaporean couples in their decision to raise more children. The scheme is part of the “Marriage and Parenthood Package”, which includes a cash gift and (or) contributions to the Child Development Account (CDA).

You are welcome to avail the Baby Bonus Scheme if your child:

a. is a Singapore citizen,
b. was born alive,
c. was born from lawfully married parents, and
d. was born on or after September 1, 2016 from unwed parents.

After careful examination, you found out that you eligible to reap the benefits of the Baby Bonus Scheme. Congratulations! Remember that it has two distinct forms – the cash gift and the CDA.

The cash gift, as the name suggests, is given in the form of tangible dollars. The purchasing power belongs to you as you can do anything you desire with it. Use it responsibly to cushion the hefty newborn costs. You shall receive a cash gift of S$8,000 for your 1st and 2nd child. While, your 3rd and 4th child shall receive S$10,000 each. This only pertains to babies born on or after January 1, 2015. The cash gift will be given to you within 7-10 working days or after completing the online form.

CDA is a special savings account that can only be opened at the government approved banks. You may use it to shoulder the costs of childcare, kindergartens, medical procedures, and private integrated shield plans. Upon opening the CDA, you will receive the Dollar-for-Dollar matching contributions and CDA First Step grant.

Image Credits: pixabay.com

The ultimate purpose of the BBS is to provide financial assistance to parents who will help build a brighter future for Singapore. For more information, go to the official website at babybonus.msf.gov.sg.

Sources: 1 & 2

Basic Guide To Taxation In Singapore

Individuals, corporations, trustees, and partnerships that are carrying on profession, trade, or business in Singapore are chargeable with tax. Fortunately for you, the country offers one of the lowest tax rates in the world.

Whether you are entering the country’s working scene as a local citizen, a fresh graduate or a foreign worker, you must familiarize yourself with the taxation regulations. Start by reading this guide…

AUTHORITY

The Inland Revenue Authority of Singapore (IRAS), formed in 1960, is the statutory board responsible for collecting personal income taxes, corporate taxes, goods & services taxes, property taxes, betting taxes, and stamp duties. In short, it integrates all the revenue collection agencies into one place in order for the processes to be managed better.

The governing laws include Income Tax Act, Goods & Services Tax Act, Stamp Duties Act, and Property Tax Act.

TYPES

For your reference, here are some of the most common types of taxes in Singapore:

INCOME TAXES are charged based on the income of individuals and companies.
GOODS & SERVICES TAXES (GST) are the tariff paid when you spend on merchandise, services, and imported goods.
PROPERTY TAXES are charged to the owner/s based on the expected rental values of the said properties.
BETTING TAXES are paid when betting on the lottery, sweepstakes, or alike.
STAMP TAXES are imposed on legal and commercial documents.

TERMS

To avoid confusion, here are some of the most common terms related to income taxes:

NOTICE ASSESSMENT (NOA)
– NOA shows the amount of income subjected to tax, calculates the tax amount you have to pay, and displays the credit balance that needs to be refunded to you. Simply, NOA is your tax bill.
YEAR OF ASSESSMENT (YA)
– YA refers to the annum in which the income tax is charged and calculated. It is a no brainer!
BASIS PERIOD
– Basis period refers to the previous YA that is relevant to the current YA.
PERSONAL RELIEFS
– Personal reliefs are good news as they are the deductions that help you to save tax.
ASSESSABLE INCOME
– Lastly, the assessable income refers to your total income after subtracting the approved donations and allowable expenses.

Image Credits: pixabay.com (CC0 Public Domain)

For more information about what is taxable and what is not, please visit www.iras.gov.sg.

Sources: 1, 2, & 3

How Much Are Your Mistakes Worth in Singapore? #FineCity

Singapore has been dubbed globally as a “Fine City”. The common penalties range from S$200 to S$1,000. Some laws are famous for its outrageous nature such as banning of chewing gums or durians (in public transportation).

The strict policies may urge you to be hesitant in your actions but it will surely train your discipline and accountability.

1. NO PIRATED GOODS

Much like most of the countries, Singapore has a strict policy for Pirated Goods (e.g., CDs or DVDs) and Pornography. Illegal video circulation is an offense that will fine up to S$1,000 (US$800).

2. NO SMOKING

Aside from the record-breaking cigarette prices in Singapore, violation of the smoking regulations can cost you up to S$1,000. Authorized cigarette packs have a stamp of “SDPC” (Singapore Duty-Paid Cigarette). Otherwise, you have to pay S$500 per pack once you are caught bringing it inside the country. Smoking in public areas such as the public train is strictly prohibited.

3. NO CHEWING GUMS

As most might acknowledge, chewing gums are banned in Singapore. Importing chewing gums in the country even for personal consumption is illegal. Improper disposal of gum and carrying huge quantities of it will cost you a fine of S$500 to S$1,000 on your first offense. This is to prevent chewed gum traces on the public seats, pavements, stairways, and floors.

4. NO LITTERING

Aside from being a fine city, Singapore is known for its impeccable cleanliness. Initial offenders who throw small items like cigarette sticks or candy wrappers are penalized for S$300. Anyone else that are caught littering in public will be fined with S$1,000 and will do community service.

5. DON’TS IN THE PUBLIC TRANSPORTATION

To maintain cleanliness and safety of all the citizens, flammable goods are banned inside a public transportation. Once you get caught with a flammable item, you will get the S$5,000 (US$4,000) fine. Also, no eating or drinking is allowed inside buses, train stations, and inside the train. It will cost you from S$300 to S$500 once you are caught.

Image Credits: Paul Papadimitriou via Flickr

If you have a bad memory, worry not since warning signs are plastered all over buses and trains.

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