Budget Summary Slides FY2016

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Information about Budget Summary Slides FY2016

Published on November 21, 2016

Author: YCLim4

Source: slideshare.net

1. • Builds our foundation for the next 50 years • Set amidst a challenging environment • Measures that build on the Singapore spirit that we have inherited • Partnerships between people, government, and businesses The beginning of a journey that will define our future

2. • From basic education to helping our people to skill up at all stages of life • From general healthcare to healthcare for an ageing population • From basic infrastructure to a smart nation • From tackling unemployment to providing quality jobs for a mature workforce Singapore in the next 50 years...

3. • Grow our economy to increase our resources for rising needs • Remain prudent, spend responsibly, invest in our future, innovate • Build on the spirit of partnership between Singaporeans We must continue to find new ways to work together so that everyone has a better life

4. 1. Address near term concerns 2. Embark on the Industry Transformation Programme 3. Help Singaporeans to adapt and find new opportunities Budget 2016 will build towards the vision of our Future Economy

5. • Help companies to manage economic slowdown • Encourage companies to seek opportunities to grow Addressing Near Term Concerns Transition Support Package and Infrastructure Projects Continued support for firms Enhancement of Revitalisation of Shops Scheme Better support heartland enterprises Extension of Special Employment Credit Help older workers stay employed SME Working Capital Loan Help SMEs with cashflow and expansion Enhanced Corporate Income Tax Rebate Raised from 30% to 50% tax payable with a cap of $20,000 each year for YAs 2016 and 2017 Changes to Foreign Worker Levy Tighten inflow of foreign workers

6. • In March 2016, firms receive a total of $1.9 billion under the Wage Credit Scheme • Public sector demand for construction projects expected to increase significantly in 2016 – $2.5 billion of public spending expected in small construction projects in 2016, which will benefit smaller construction firms Addressing Near Term Concerns Continued support from Transition Support Package and Infrastructure Projects

7. Addressing Near Term Concerns • Provides employers with a wage offset for older workers earning up to $4,000/mth • Extended for 3 years - 2017 to 2019 • $1.1bn top-up to the SEC Fund Extension of Special Employment Credit (SEC) Age of Worker Monthly Wage Offset 55 to 59 Up to 3% 60 to 64 Up to 5% 65 & above Up to 8% (+3% until re-employment age raised)

8. Addressing Near Term Concerns • In view of challenging business conditions and reduction in number of Work Permit holders in those sectors • Defer levy increase for Work Permit holders in Marine and Process sectors for 1 year • As announced in Budget 2015: • Manufacturing sector Work Permit levies remain unchanged • Services and Construction Work Permit holders, and S Pass holders in all sectors will see levy increases Changes to Foreign Worker Levy

9. • Better support promotional activities and upgrading projects in HDB town centres and neighbourhood centres • SPRING to work with the Federation of Merchants’ Association Singapore (FMAS) and local merchant associations to strengthen their capabilities to support heartland businesses • $15 million/year to support this Addressing Near Term Concerns Enhancement of Revitalisation of Shops Scheme

10. Addressing Near Term Concerns • Support SMEs that may have cash flow concerns or wish to expand • Loan cap of up to $300,000 per SME • Government will co-share 50% of the default risks of loans with Private Financial Institutions • 3-year scheme SME Working Capital Loan

11. • Innovate and adopt new technology • Encourage scale Help companies to create value and grow Focus on Targeted Support Tapering of PIC Automation Support Package Support companies for scaling up of automation Business Grants Portal One-stop resource to apply for govt grants National Trade Platform One-stop trade information system Jurong Innovation District Bring together learning, research, innovation and production National Robotics Programme Increase efficiency, create high-value jobs Financing and Tax Incentives Support companies to scale-up Support for Internationalization Help companies to access overseas markets • Help with internationalization • Deepen partnerships Embark on Industry Transformation Programme

12. Embark on Industry Transformation Programme • Cash payout rate for PIC will be 40% for qualifying expenditures incurred on/after 1 Aug 2016 • Cap of $100,000 of qualifying expenditure per YA remains • PIC will expire after YA2018, as we focus on more targeted support Focusing on Targeted Support

13. Embark on Industry Transformation Programme • Fund up to 50% of project cost, grant cap of $1 million • 100% Investment Allowance for automation equipment • Improve SMEs’ access to loans for approved projects • Govt will enhance risk-share with Private Financial Institutions from 50% to 70% • IE Singapore will work with SPRING where relevant to help these businesses to access overseas markets. Automation Support Package

14. Embark on Industry Transformation Programme How it works: • A company embarks on a $2m project to scale up its automated manufacturing lines. It can receive up to $1 million in grants, and more than $0.5m in tax savings under the Investment Allowance and normal capital allowance for plant and machinery Automation Support Package

15. Embark on Industry Transformation Programme • One-stop portal for companies to apply for government grants • Organized to meet business needs of capability building, training and international expansion • Greater convenience – portal will pre-populate details that are available in the ACRA database • To be launched end of 2016 Business Grants Portal

16. Embark on Industry Transformation Programme • One-stop trade information management system • Enable electronic data sharing between businesses and government • Open innovation platform – companies can develop value-added services and apps • $600 million worth of man-hour savings each year expected National Trade Platform (NTP)

17. Embark on Industry Transformation Programme • New major development to create a next-generation innovation district • Linking academia, research, innovation and production • First phase of JID to be completed by around 2022 Jurong Innovation District (JID) Watch a video about the JID here

18. Help Singaporeans to Adapt and find New Opportunities Overview “Adapt and Grow” Initiative Help our people adapt to changing job demands and grow their skills TechSkills Accelerator Strengthen training and job-matching in ICT sector Investing in SkillsFuture Help Singaporeans take charge of their learning and maximise their potential throughout life

19. Help Singaporeans to Adapt and find New Opportunities • Help our people to adapt to changing job demands and grow their skills • Wage support for workers who facing difficulty finding jobs • Step up the Professional Conversion Programme to include programmes in design and ICT “Adapt and Grow” Initiative

20. Help Singaporeans to Adapt and find New Opportunities • New skills development and job placement hub for the ICT sector • Identify skills in demand and work with specialized training providers • Develop industry-recognized skills standards and certification • Work with anchor employers to hire and pay based on certified skills proficiency rather than academic qualifications TechSkills Accelerator

21. In 2016: • Plans to launch about 18,000 HDB flats e.g. new towns such as Bidadari Helping Singaporeans own their homes Housing Policies in the last 5 years… • Launched 100,000 flats • Raised household income ceiling • BTO flats, Exec Condos • Extended Special CPF Housing Grant • raised income ceiling, doubled the grant • Step Up CPF Housing Grant • help 2nd-time families upgrade from 2- to 3-Room flats in non- mature estates • Proximity Housing Grant • for buying a resale flat near parents or married children

22. In 2016: • Continued universal coverage under MSHL; premiums kept affordable. • Subsidised healthcare under CHAS will continue • Generous healthcare subsidies under PGP will continue • Further expansion and building of healthcare facilities Ensuring affordable, accessible and high- quality healthcare for Singaporeans Healthcare Policies in the last 5 years... • Launched MediShield Life (MSHL) • Expanded CHAS • cover more Singaporeans • provide higher subsidies for visits to specialist outpatient clinics • Launched Pioneer Generation Package (PGP) • provide healthcare benefits to pioneers for life • Increased capacity of healthcare facilities e.g. acute & community hospitals, nursing homes and polyclinics

23. In 2016: • Further enhancements to Workfare • Silver Support to supplement the incomes of elderly Singaporeans Empowering all to age with vitality and dignity Strengthening retirement adequacy in last 5 years…. • Help Singaporeans save more while working • Enhanced Workfare • Increased CPF Salary Ceiling and SRS Contribution Cap • Raising CPF contributions for older workers • Supporting re-employment • Enhancing the CPF system • Additional Extra Interest • More flexibility and choices

24. Caring for Our Seniors • For bottom 20% of elderly aged 65 and above, and smaller degree of support covering up to bottom 30% • Seniors who had lower incomes over their lifetimes and have less retirement support • Application not required – automatic enrolment if you qualify; Paid out quarterly • First payment in July 2016 will consist of 2 quarters’ worth of payouts Silver Support

25. • Who will get it? Caring for Our Seniors Lifetime Wages Housing Type Household Support Not more than $70,000 in total CPF contributions at age 55; self-employed persons should also have an average annual net trade income of not more than $22,800 between the ages of 45 and 54 1 to 5-Room HDB flats* Household income per person is not more than $1,100 per month *Seniors will not qualify if they, or their spouses, or both own an HDB flat which is 5-Room or larger, a private property, or multiple properties.

26. • Eligible seniors will receive between $300 to $750 every quarter, depending on their flat type* Caring for Our Seniors Residence Type Payout per quarter Payout per year 1-2 Room HDB $750 $3,000 3-Room HDB $600 $2,400 4-Room HDB $450 $1,800 5-Room HDB* $300 $1,200 Note: Seniors on the ComCare Long Term Assistance (LTA) Scheme will automatically receive a Silver Support Payout of $300 per quarter, so long as they meet the age criteria. *Live in and do not own a 5-Room HDB flat.

27. Caring for Our Seniors Lifetime Wages Put less than $70,000 into their CPF accounts each by age 55 Residence type/ property ownership 3-room HDB flat Household income None Silver Support payouts $600 each every 3 months $4,800 per year Mr X Age: 67 Retired Former Hawker Assistant Mrs X Age: 66 Homemaker Left workforce 20 years ago to take care of ill and elderly mother The couple has no children

28. Caring for Our Seniors • To better coordinate amongst community partners to reach out to seniors and enable them to age successfully • Networks will comprise local stakeholders with small full-time teams to coordinate support for seniors • Empower seniors to take preventive health measures • Connect those who are healthy and mobile to activities • Provide more targeted and coordinated health and social support for seniors who need more help Community Networks for Seniors (Pilot)

29. Caring for Families & Households Families with children… Currently you enjoy: • Child Development Account Co-Savings • Enhanced Baby Bonus Cash Gift of $8,000 to $10,000 • $4000 Medisave Grant for Newborns • 4 months maternity leave • 1 week legislated paternity leave • Up to 6 days of childcare leave/year • Parenthood Priority Scheme, Parenthood Provisional Housing Scheme (for HDB flats) • MediShield Life coverage from birth • Parenthood Tax Rebate • Working Mother’s Child Relief • Subsidies for Centre-based Infant care and Childcare • Foreign Domestic Worker levy concession • Medisave maternity package, etc.

30. Caring for Families & Households In addition, you will now get: • Child Development Account First Step Grant of $3,000 • Double the Medisave withdrawal limit from $450 to $900 for pre-delivery medical expenses for mothers who have delivered on or after 24 March 2016 Families with children…

31. Caring for Families & Households • For all eligible babies born on or after 24 March 2016 • Previous: Parents must first save into CDA to receive $1:$1 co-matching contributions from Government • New: First $3,000 of Government contributions provided without parents having to save first • Parents can continue to save into CDA to receive $1:$1 co-matching, up to remaining Government contributions caps Child Development Account First Step Grant

32. Caring for Families & Households Child Development Account First Step Grant $6,000 $6,000 Previously $3,000 $6,000 Parent’s Savings Maximum Government Contribution Parent’s Savings Maximum Government Contribution Enhanced First Step $3,000 $3,000 For 1st & 2nd Child Each

33. • Wait till 1 July 2016 before starting to save into CDA Caring for Families & Households Birth Order CDA First Step Grant Government’s co-savings for each dollar that parents save Total Government contribution (no change) 1st or 2nd $3,000 $3,000 $6,000 3rd or 4th $3,000 $9,000 $12,000 5th or higher $3,000 $15,000 $18,000

34. Caring for Families & Households • For second-timer families with young children, who sold their first flat and are now living in public rental housing • Grant of up to $35,000, to help them own a 2-Room flat with shorter lease • Families need to demonstrate effort e.g. by staying employed and ensuring their children attend school • Work with social agencies to support these families Fresh Start Housing Scheme

35. Caring for Families & Households One-off GST Voucher – Cash Special Payment on top of regular GSTV- Cash, Medisave and U-Save Annual Value of Home as at 31 Dec 2015 Up to $13,000 $13,001 to $21,000 $300 + $200 GSTV – Cash Special Payment $150 + $100 GSTV – Cash Special Payment Total in 2016: $500 Total in 2016: $250 To Qualify Assessable Income for YA 2015 ≤ $26,000 For individuals ≥ 21 years Note: Individuals who own more than one property will not qualify for the GST Voucher Scheme

36. Caring for Families & Households • Total personal income tax reliefs capped at $80,000 per YA • 99% of tax-resident individuals will not be affected • With effect from YA 2018 • Personal income tax obligation remains low • Will make our tax system more progressive Personal Income Tax Relief Cap

37. Caring for Families & Households • 1 to 3 months of Service and Conservancy Charges Rebate • Benefits about 840,000 households Service and Conservancy Charges Rebate HDB Flat Type S&CC Rebate (No. of months offset) 1- and 2-Room HDB 3 3- and 4-Room HDB 2 5-Room HDB 1.5 Executive / Multi-Generation 1

38. Caring for Families & Households Family A lives in a 4-room flat Husband Age: 35 Income: $2,800/mth Wife Expecting 2nd Child Age: 32 Income: $1,800/mth Son the firstborn Age: 4

39. Family A is eligible for the following schemes in 2016: Scheme Benefits Total Cash Total to CPF Healthcare Subsidies Healthcare subsidies for Medishield Life premiums and Community Health Assist Scheme (CHAS) Varies Varies Marriage & Parenthood Package For newborn: Baby Bonus Cash Gift, CDA First Step grant, Medisave Grant for Newborns etc For 4 yo child: Child Care subsidies etc $8,000 (Baby Bonus Cash Gift) + $3,000 (CDA) + $4,800 (Childcare) $4,000 GST Voucher (GSTV) Scheme $300 GSTV – Cash (wife) $200 one-off GSTV – Cash Special Payment (wife) $220 GSTV – U-Save rebate (Household) $500 +$220 utilities rebate Service and Conservancy Charges (S&CC) rebate 2 months of S&CC rebate 2 mths S&CC rebate TOTAL >$16,520 >$4,000

40. Caring for Families & Households Family B lives in a 3-room flat Husband Age: 66 Income: $1,300/mth Wife Age: 60 Income: $700/mth

41. Family B is eligible for the following schemes in 2016: Scheme Benefits Total Cash Total to CPF Healthcare subsidies Healthcare subsidies for Medishield Life premiums and Community Health Assist Scheme (CHAS) Varies Varies Silver Support Scheme $1,200 in July 2016 $600 every subsequent quarter $2,400 Extra Interest (CPF) Additional 1% of interest on first $30,000 of CPF balances (up to $300 each) $600 5-Year Medisave Top-Up Scheme $200 each, Medisave top-up, every year until 2018 $400 Workfare Income Supplement $3,150 (husband) per year from 2017 ($525 increase) $2,500 (wife) per year from 2017 ($48 increase) $2,037 $2,260 from 2017 $3,040 $3,390 from 2017 GST Voucher (GSTV) Scheme $300 GSTV – Cash (each); $200 one-off GSTV – Cash Special Payment (each); $250 GSTV – Medisave (husband); $240 GSTV – U-Save $1,000 +$240 utilities rebate $250 Service and Conservancy Charges (S&CC) rebate 2 months of S&CC rebate 2 mths S&CC rebate TOTAL >$5,677 >$4,290

42. Caring for Families & Households Family C lives in a 5-room flat Wife Age: 46 Income: $2,500/mth Grandma Age: 75 Retired and a Pioneer Daughter Age: 20 University student Son Age: 17 Polytechnic student Husband Age: 48 Income: $4,000/mth

43. Family C is eligible for the following schemes in 2016: Scheme Benefits Total Cash Total to CPF Healthcare subsidies Healthcare subsidies for Medishield Life premiums and Community Health Assist Scheme (CHAS) Varies Varies Pioneer Generation Package (Grandma) $400 in Annual Medisave top-up Subsidies of 40 – 60% for MediShield Life Special subsidies for Outpatient Care $400 Bursaries for Institutes of Higher Learning $2,600 MOE bursary (Daughter) $1,500 MOE bursary (Son) Eligible for Tuition Fee Loans and Study Loans (interest-free for duration of studies) $4,100 GST Voucher (GSTV) Scheme $300 GSTV – Cash (Grandmother) $200 one-off GSTV – Cash Special Payment $350 GSTV – Medisave (Grandmother) $200 GSTV – U-Save rebate (Household) $500 +$200 utilities rebate $350 Service and Conservancy Charges (S&CC) rebate 1.5 months of S&CC rebate 1.5 mths S&CC rebate TOTAL >$4,800 >$750

44. From January 2017, WIS Scheme will be enhanced Caring for Our Low-Wage Workers & Persons with Disabilities Enhancements to Workfare Income Supplement (WIS) Scheme Enhanced WIS Scheme • For workers earning up to $2,000/month • WIS will be paid monthly • WIS will be paid for every month worked • Workers earning $1,000 to $1,600 get $100/yr to $500/yr increase Current WIS Scheme • For workers earning up to $1,900/month • WIS is paid quarterly • To qualify, one has to work 2 out of 3 consecutive months

45. • Employers who hire PWDs who earn up to $4,000/month will continue to receive the Special Employment Credit. • PWDs below 35 years old who earn low wages eligible for the Workfare Training Scheme from 1 Jan 2017 • Public Service will expand job opportunities for persons with disabilities Caring for Our Low-Wage Workers & Persons with Disabilities Extension of Workfare Training Scheme to more persons with disabilities (PWD)

46. • Increase in basic monthly cash allowance • This is on top of free or highly subsidized social services, free medical treatment in polyclinics and public hospitals • LTA recipients will also receive Silver Support if they meet age criterion Caring for Our Low-Wage Workers & Persons with Disabilities Increase in ComCare Long-Term Assistance (LTA)

47. Building a Caring Society • Businesses who organise their employees to volunteer and provide services to IPCs, including secondments, will receive a 250% tax deduction on wages and incidental costs • Subject to IPCs’ agreement, with a yearly cap of $250,000 per business and $50,000 per IPC on the qualifying costs • Pilot scheme from 1 July 2016 to end of 2018 Business and IPC Partnership Scheme (BIPS)

48. Building a Caring Society • Government will match dollar-for-dollar all additional donations through SHARE, over and above the FY2015 levels • FY2016 to FY2018, starting 1 April 2016 • Part of the matching funds will be made available for businesses to support approved corporate social responsibility efforts Supporting Community Chest Giving

49. Building a Caring Society • A new fund for citizens’ ground-up initiatives that build national identity or meet social and community needs • Up to $25 million • Set up by second half of 2016 Our Singapore Fund

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