Direct Benefit for Households in Budget 2011

I am only highlighting some of the more direct benefits (non-business related) to households. This year's budget is truly an election budget where most of the benefits are to the working class and families.

Looking at the benefits to businesses, you can see the general direction that the government is heading is that foreign workers should not be brought in to lower the salaries of Singaporeans. To counter this, they are most probably going to keep raising the foreign workers levy so as to level the playing field. On the other hand, they are also providing productivity packages to the companies in order to encourage them to train their workers.

The benefits in this budget however does nothing in enhancing work-life balance for all Singaporeans. All the benefits are mostly in monetary terms. There is still no definition of how the productivity is to be measured. Labour Productivity (average output per worker-hour) should be emphasized instead of general productivity. Labour Productivity will show the true picture that the increase in productivity is not due to the exploitation of workers. This is sadly, not mentioned.

Anyway, below are some of the more direct benefits to households:

1. A one-off Special Bonus in cash, for those on the Workfare Income Supplement (WIS) scheme, amounting to 50% more WIS payment for work done in 2010, and 25% more WIS payment each year for work done in 2011 and 2012,  will be paid out on 15 May 2011.
   
   
2. For Year of Assessment 2011, a personal income tax rebate of 20% will be given to individual resident taxpayers, capped at $2,000.
   
3. From July 2011, $400 will be credited to the Children Development Account (CDA) for families with Annual Value of Home in 2010 that is up to $13,000. The rest of the families' CDA will be credited $300.
   
4. The CPF Medisave accounts for Singaporeans aged 45 years and above will receive top-ups according to the table below.
   
   
   
5. By 1st May 2011, all adult Singaporeans will be given Growth Dividends according to the table below.
   
   
   
   
   
6. Singapore Households will be given Utilities-Save (U-Save) and Service and Conservancy Charges (S&CC) rebates according to the table below.
   
   
   
7. For Year of Assessment 2012, the tax structure will be made more progressive resulting in middle-income earners enjoying the largest percentage reduction in their taxes. The tax structure will be according to the table below.
   
   
   
8. The radio ($27) and television licence ($110) annual fees will be removed with effect from Year 2011.
   
9. From September 2011, the employer CPF contribution rate will be raised by 0.5 percentage points, bringing the total CPF contribution rate to 36%. The additional 0.5% will go into the Special Account. The CPF salary ceiling will also be revised from $4,500 to $5,000 per month
   
10. In line with the higher CPF ceiling, the contribution cap of the Supplementary Retirement Scheme (SRS) will be increased.
    
11. From Year of Assessment 2012, tax deduction will be granted to eligible companies that make voluntary contributions to the Medisave accounts of their self-employed persons (SEPs) partners, up to $1,500 per SEP per year.
    
12. The Kindergarten Financial Assistance Scheme (KiFAS) and the Centre-based Financial Assistance Scheme for Childcare (CFAC) will be enhanced and extended to include families with up to $3,500 in gross monthly household income.
    
13. A Special CPF Housing Grant (SHG) to help low income families making a first-time Build-to-Order (BTO) flat purchase, on top of the existing Additional CPF Housing Grants (AHG). The SHG will be provided to families who earn up to $2,250 per month.

For more information on the budget 2011, you can visit the budget website here.