Singapore Budget 2012 for Households

Source: MSN.com Singapore

Fol­low­ing is a sum­mary of the Singa­pore Budget 2012 in 5 dif­fer­ent cat­egor­ies.

Reward­ing Work for the Eld­erly

  • From 1 Septem­ber 2012, the CPF con­tri­bu­tion rate will be increased for both employ­ers and employ­ees who are 50–65 years old. The aim is to increase to 36% in time to come.
  • From 1 Janu­ary 2012, the Medis­ave Con­tri­bu­tion Rate will be increased from 9% to 9.5% for the self-employed who are aged 50 years and above.
  • From Year of Assess­ment 2013, the earned income tax relief from $3000 to $6000 for those aged 55–59. And $4000 to $8000 for those aged 60 and above.

 

Help­ing Seni­ors Unlock Sav­ings

  • For those who are aged 55 and above, Gov­ern­ment will give bonus of $20,000 ($15,000 cash, $5,000 CPF) if they down­grade to 3-room or smal­ler flats or Stu­dio Apart­ment.
  • The Lease Buy-Back Scheme will be enhanced such that the pro­ceeds can be cashed out after set­ting aside the pre­vail­ing sum in their Retire­ment Accounts. The bonus will be increased from $10,000 to $20,000.

 

Enhan­cing Afford­ab­il­ity of Health­care

  • All patients in com­munity hos­pit­als will now qual­i­fy for gov­ern­ment sub­sidies, up from half of all patients cur­rently.
  • Sub­sidies for nurs­ing homes, com­munity and home-based care will also be raised. Two-thirds of Singa­por­ean house­holds will qual­i­fy for sub­sidies, up from 50% cur­rently.
  • There is a $120 grant for hir­ing a for­eign domest­ic help­er to care for eld­erly mem­ber at home.
  • GST will be per­man­ently absorbed in com­munity hos­pit­al, nurs­ing home and home care.
  • Gov­ern­ment will sub­sid­ise up to 95% of the install­a­tion cost of eld­erly friendly fea­ture in about 130,000 homes.
  • All Singa­por­ean will receive between $50 to $400 top-up to their Medis­ave due to increase in premi­um of MediShield. Medishield will in turn be enhanced to cov­er more such as con­gen­it­al con­di­tions and increase the max­im­um cov­er­age age from 85 to 90 years old.

 

Sup­port­ing Singa­por­eans with Dis­ab­il­it­ies

  • Pre-school chil­dren with mild speech, lan­guage and learn­ing delays will be able to receive learn­ing sup­port inter­ven­tion and if neces­sary ther­apy inter­ven­tion to help them while they are in main­stream pre-schools.
  • The Spe­cial Employ­ment Cred­it will be exten­ded to employ­ers that hire Per­sons With Dis­ab­il­it­ies (PWDs) of all ages who have gradu­ated from VWO-run Spe­cial Edu­ca­tion (SPED) schools regard­less of age.
  • The Work­fare Income Sup­ple­ment will be exten­ded to all PWDs who have gradu­ated from VWO-run SPED schools regard­less of age.
  • From Year of Assess­ment 201, the Han­di­capped Earned Income Tax Relief for dis­abled work­ers of all ages will be doubled.

 

Fair Tax Sys­tem

  • A per­man­ent sys­tem of off­sets in the form of GST Vouch­er to help lower-income Singa­por­eans.
    • GST Vouch­er –Cash: Eli­gible low-income Singa­por­ean will receive $250 for Annu­al Value of Home up to $13,000, and $100 if value is between $13,000 to $20,000.
    • GST Vouch­er – Medis­ave: An annu­al top-up of $150-$450 to the Medis­ave Accounts of older Singa­por­eans aged 65 and above and liv­ing in prop­er­ties which have an Annu­al Value that does not exceed $20,000.
    • GST Vouch­er – U-Save:  All HDB house­holds to get $80- $260 rebate to help dir­ectly off­set the monthly util­it­ies bills.

 

Singa­por­eans can expect to receive their annu­al GST Vouch­er – Cash and GST Vouch­er – Medis­ave from Aug 2012 onwards. The GST Vouch­er – U-Save will be giv­en out in Jan and Jul each year, start­ing Jul 2012.

Source : http://app.singaporebudget.gov.sg/budget_2012/default.aspx.

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