TLDR Singapore Budget 2020

Deputy Prime Minister and Finance Minister Heng Swee Keat delivered the 2020 Budget Statement on Tuesday, Feb. 18, at 3:00pm in Parliament. This is the 5th time he is delivering the Budget statement, since taking over as Finance Minister in 2015.

  1. GST will remain at 7% in 2021. Hike will still be needed by 2025.
  2. As part of the $1.6 billion Care and Support Package, depending on your income and home ownership, all Singaporeans aged 21 and above will receive a one-off cash payout of $100, $200, or $300 in 2020.
  3. Additional GST voucher — U-Save rebates will be given to all eligible HDB households to help with their utilities expenses.
  4. Parents with at least one Singaporean child aged 20 and below will each receive $100 in 2020.
  5. Singaporeans aged 50 and above will receive $100 PAssion card top-up in 2020.
  6. Jobs Support Scheme to help enterprises retain their local workers, the Government will offset 8 per cent of each local worker in employment, up to a monthly cap of S$3,600, for three months. The amount will be disbursed to employers by the end of July 2020.
  7. Wage Credit Scheme, enhanced to support wage increases for local employees, monthly wage ceiling for Singaporean employees will be raised from S$4,000 to S$5,000 a month, for qualifying wage increases given in 2019 and 2020.
  8. A corporate income tax rebate at the rate of 25 per cent of tax payable, capped at $15,000 per company, will be granted for the tax year of assessment 2020.
  9. Rental waivers will be granted for hawkers operating in National Environment Agency-managed hawker centres and markets and commercial tenants of government agencies.
  10. 15% property tax rebate will be granted for qualifying commercial properties.
  11. 30% property tax rebate will be granted for some components of licensed hotels and serviced apartments, as well as prescribed meetings, incentives, conventions, and exhibitions (MICE) venues.
  12. The Government will work with participating financial institutions to introduce a Temporary Bridging Loan Programme for a year to provide additional cash-flow support for tourism sector enterprises.
  13. Pre-university students from lower-income families will get an extra $100 under the Education Ministry’s Financial Assistance Scheme, with the quantum raised from $900 to $1,000.
  14. Singaporeans aged 25 and above will each get a $500 SkillsFuture credit top-up, which can be used from 1 October. The top-up will expire by December 2025.
  15. Central Provident Fund (CPF) will introduce a Matched Retirement Savings Scheme, for lower- to middle-income Singaporeans aged 55 to 70 who have not been able to set aside the prevailing Basic Retirement Sum (BRS). The Government will match every dollar of cash top-up made to their CPF Retirement Account, up to an annual cap of $600.
  16. The Government aims to phase out all vehicles with internal combustion engines by 2040.
  17. EVs and some hybrid vehicles will be taxed less, with a revision in tax methodology for cars from next January.
  18. The Government aims to deploy up to 28,000 public charging points for EVs by 2030, up from 1,600 currently.

If you are not a lazy SOB would like to find out more, the budget speech can be found in its entirety here and I strongly encourage all Singaporeans to take the time to read through it and understand how it will affect you within the coming years.

18 February 2020

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