10 Facts About Budget 2019 S’poreans Need To Know

In case you’ve been living under a rock, you’d know that the Singapore Budget for Financial Year 2019 was announced yesterday on 18 Feb 2019.

And it was an interesting announcement, given that the General Elections could be held this year.

Here are 10 facts about Singapore Budget 2019 Singaporeans need to know since it’ll directly affect you.

Including the amount of GST Voucher they’ll get and how the government will make it easier for young Singaporeans to support their parents.

1. The Theme of Budget 2019

The Budget 2019 was themed “Building a strong, united Singapore”.

According to Mr Heng, the challenges facing Singapore today consists of the following:

• The shift in global economic weight towards Asia
• Rapid technological advancements
• Changing demographic patterns
• A decline in the support for globalisation

In response, the government is going to make Singapore

• A global city and home for all
• A caring and inclusive society
• A vibrant and innovative economy
• Safe and secure

2. Two GST Vouchers In One Year

Okay, the news that we’ve been waiting for.

GST Vouchers.

Yes, you got that right. Vouchers as in plural.

If you’ve been paying special attention to Singapore media, you’ll know that everyone’s hyping up on the term “bicentennial”. Simply put, it’s 200 years after Sir Stamford Raffles had landed on Singapore and started us on the route to what we are today.

To commemorate the occasion, the Singapore government has put aside $1.1 billion to help lower-income Singaporeans.

Firstly, you must be above 21 in 2019, and your annual income in 2017 must be less than $28,000 (which means your monthly income in 2017 must be less than $2,333).

Even so, you’ll need to have a certain home annual value. If your home annual value in the end of 2018 was less than $13,000, you’ll receive $300. If it was between $13,000 to $21,000, you’ll receive $150.

A total of 1.4 million Singaporeans will receive this payout, which is paid in end 2019.

This GST Voucher is on top of the regular GST Voucher that Singaporeans receive annually, which is paid on August 2019.

3. Other Ang Baos In Bicentennial Bonus

Besides giving cash handouts, Singaporeans can also look forward to the following:

Personal Income Tax Rebate: This year, Singaporeans will enjoy up to 50% tax rebates on their income in 2019. Every taxpayer will be eligible for the rebate and it’ll be capped at $200 per taxpayer.

Support for Students: 

• Primary and Secondary school students will receive a $150 top-up in their Edusave account
• Students aged 17-20 years old will receive a top-up of either $250 or $500 in their Post-Secondary Education Accounts (PSEA), depending on whether their annual home value for 2018 exceeded $13,000.

CPF Top Up For The Elderly: Singaporeans aged between 50 and 64 will receive $300 to $1,000 CPF top-ups, depending on their CPF balance.

Workforce Income Supplement Bonus: Singaporeans who are under the WIS scheme will receive an additional 10% (in cash) for work done in 2018. The payment will range from a minimum of $100 to a maximum of $360.

4. The Merdeka Generation

The Pioneer Generation package was a roaring success in Singapore, and now, the government is focusing on another group, the Merdeka generation.

These are Singaporeans

• Born between 1950 and 1959 and became a Singaporean citizen before 1997, or
• Born in or before 1949, became a Singaporean citizen before 1997, but missed out on the Pioneer Generation Package.

The government wants to reward them for playing important roles in helping Singapore grow to the powerhouse it is today.

5. Mostly Healthcare Benefits

The Merdeka generation consists of Singaporeans mostly within the 60 to 69 age group. Which means that the most help that could be geared towards them is in terms of healthcare.

Since, you know, at that age, we start seeing a lot of health problems. And healthcare in Singapore can be pretty expensive.

The Merdeka Generation Package consists of the following handouts:

• A total of $1,000 top-up to eligible Singaporeans’ MediSave accounts ($200 a year from 2019 to 2023)
• Special subsidies under the Community Health Assistant Scheme (CHAS) and an additional 25% off subsidised bills at polyclinics and public Specialist Outpatient Clinics (SOCs)
• Additional 5% subsidy for annual premiums for MediShield Life
• $1,500 participation incentive for joining CareShield Life when it’s available.

6. $100 Medisave Top-Up For The Next Five Years

Healthcare benefits aren’t just reserved for Singaporeans in the Pioneer or Merdeka generation. Younger (relative to the aforementioned) Singaporeans will receive some love from the Government too.

S’poreans aged 50 and above, but did not receive the benefits of the Merdeka or Pioneer Generation packages will receive $100 top-up in their Medisave accounts for the next 5 years.

7. CHAS Coverage For Every Singaporean Regardless of Income

CHAS is actually a scheme meant for lower-income Singaporean families.

However, this year, there’s a couple of minute changes made to the CHAS scheme.

One of which is making it available to all Singaporeans, regardless of their income, as long as they have chronic illnesses.

Also, CHAS orange card holders can now get subsidies for common illnesses.

And higher subsidies will be given for complex chronic illnesses (which means more expensive treatments).

Given that there was an IT error in the CHAS system just months ago, let’s hope the new changes wouldn’t result in yet another…error.

8. Reduction of GST Tax Relief & Duty-Free Alcohol

If you’re someone who looks forward to travelling overseas not just for the holiday, but the bonus duty-free shopping when you’re back, you’ll be sad to know this.

If you’ve spent more than 48 hours overseas, you’ll won’t have to pay GST for $500 worth of loot bought overseas. Previously, the GST relief was set at $600.

Whereas if you’ve spent less than 48 hours overseas, the GST relief is reduced from $150 to $100.

Travellers are also only allowed to purchase up to 2 litres of duty-free alcohol, a drop from the previous limit of 3 litres, starting from 1 Apr 2019. No, it’s not an April Fools’ joke.

9. There’ll Be Greater Support For Workers

Schemes like the Career Support Programme and the WIS will be extended and enhanced.

The Career Support Programme will extend by two years to provide wage support for companies that hire Singaporeans who are mature and retrenched, or in long-term employment until 2021.

The WIS Scheme will see the income cap raised to $2,300 per month and higher annual payouts up to $4,000 a year.

10. And Companies Too

The Singapore government is also setting up the Scale-Up SG Programme to help local SME firms build new capabilities, innovate and enter new markets.

The programme will be launched by Enterprise Singapore who will partner up with both private and public sector to help these companies.

Another programme, Innovation SG, which is launched by Enterprise Singapore as well, will help pair local firms with experienced industry experts.

The Singapore government will also set aside an additional $100 million for the Co-Investment Fund (CIP) III, which will be invested into SMEs.

The government is also making it easier for businesses to access financing schemes, helping them grow.

So there you go, 10 facts about Budget 2019 that will affect you directly.

You’re welcome! 😉