Direct Benefit for Households in Budget 2012

I am only highlighting some of the more direct benefits (non-business related) to households. Looking at the benefits to businesses, you can see the general direction that the government is heading is that businesses should evolve to make use of the skills of the locals. On the other hand, they are also providing productivity packages to the companies in order to encourage them to train their workers. There is also a renewed focus on low-income and elderly Singaporeans and making the rebates a permanent feature within our budget that I have mentioned in this post here finally happened.

The benefits in this budget again 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. Increase CPF contribution rates of older workers and self-employed persons from 1 September 2012 (average of 2.5% increment for workers aged 50-54, 2.0% for 55-59, and 0.5% for 60-65)
   
   
   
2. Earned Tax relief is doubled to $6,000 for workers aged 55-59 and $8,000 for workers aged 60 and above from YA2013.
   
   
3. Elderly Singaporeans aged 55 and above who sell their existing flats and move to 3-room and smaller flats or Studio Apartments will receive a Silver Housing Bonus of up to $20,000 per household ($15,000 cash; $5,000 CPF).
   
   
4. The Lease Back Scheme (LBS) bonus will be increased from $10,000 to up to $20,000 per household ($15,000 cash; $5,000 CPF), and beneficiaries may cash out the proceeds after setting aside the prevailing Minimum Sum in their Retirement Accounts.
   
   
   
5. All patients in community hospitals will now qualify for government subsidies. The middle income group will receive the largest increase in  subsidy rates, getting a subsidy of 20% to 50% when they previously did not receive any.
   
   
6. Subsidies for nursing homes, home- and community-based care will be increased. Two-thirds of Singaporean households will now qualify for subsidies.
   
   
7. Provide a $120 grant per month to help lower- and middle-income families who may prefer to hire a foreign domestic helper to care for an elderly member at home (if the senior cannot perform three or more Activities of Daily Living, or has severe dementia).
   
   
   
8. Absorb GST for all subsidised patients using ILTC services. This will include community hospitals, nursing homes and home-based care.
   
   
9. Provide a one-off Medisave top-up to all MediShieldinsured Singaporeans. This will benefit more than three million Singaporeans.
   
   
   
   
10. All families with a gross household income of $2,500 or less, or a per capita income cap of $625 will qualify for MOE Financial subsidies
    
    
11. Enhance and extend Student Care Fee Assistance Scheme to help more lower-income families with a monthly household income of up to $3,500
    
    
12. New and permanent feature in the tax system: GST Vouchers (Cash, Medisave, U-Save), which will provide continuing assurance of a fair system of taxes and benefits.
    
    
    
    
    
    
    
    
    
    

For more information on the budget 2012, you can visit the budget website here.