Basket of goodies for middle-income households
TODAY file photo
SINGAPORE — A string of goodies for middle-income households were announced yesterday, as Finance Minister Tharman Shanmugaratnam outlined how the Government will help them meet their aspirations and cope with the rising cost of living.
In recent years, those in this income bracket have called for more support, saying they are struggling with the cost of living, but often miss out on government benefits that are focused on the lower income.
Yesterday, Mr Tharman said the Government has strengthened its redistributive role to benefit lower- and middle-income Singaporeans, but rolled out more measures that will go towards the second group, ranging from lowered maid levies and expanded Goods and Services Tax vouchers to education subsidies and tax rebates.
The concessionary foreign domestic worker levy will be halved to S$60 a month from May — the normal monthly levy is S$265 — and will be open to households with children aged below 16, up from below 12 now.
These will provide better support for middle-income families who are taking care of their children and elderly parents, said Mr Tharman, who added that the savings for a household will amount to S$720 a year.
A personal income tax rebate of 50 per cent, subject to a cap of S$1,000, will also be granted for 2014 income. The cap will “ensure that the benefits go mainly to the middle and upper-middle income groups”, he said.
To help middle-income Singaporeans accumulate more savings in their working years, the Central Provident Fund (CPF) salary ceiling will be raised from Jan 1 next year, while older workers will benefit from increases in CPF contribution rates and extra interest in their later years.
Early and mid-career Singaporeans will also get stronger support to upgrade their skills and advance in their careers through the SkillsFuture Credits grant and subsidies for education and training courses.
Households living in Housing and Development Board flats will also enjoy service and conservancy charges rebates of between one and three months, with those in smaller homes getting more.
In terms of help with their children’s schooling costs, Mr Tharman also announced the permanent waiver of national examination fees and top-ups of up to S$600 in several education savings accounts.
Those with young children will also benefit from more affordable and quality childcare through the new Partner Operator scheme, which will require childcare operators on the scheme to commit to quality improvements, and keep fees within reach of more households.
READ THE FULL BUDGET STATEMENT HERE
Other documents on Budget 2015 available on the Budget 2015 website.
