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Singapore Budget 2021: 10 Things That Are Going To Impact Singaporeans Financially

Singapore Budget 2021. TL;DR


Today (16 February 2021, 3pm), Deputy Prime Minister (DPM) & Finance Minister Heng Swee Keat delivered the Singapore Budget 2021 Statement. While previous budgets have started on a surplus, this year’s budget started on an estimated deficit of $64.9 billion for FY2020.

In his speech, DPM Heng outlined the plan to support Singaporean households, drive innovation and develop enterprises and restructure the economy for a better, sustainable future. While the COVID-19 pandemic is still ongoing globally, Singapore cannot be complacent but must continue to strive forward to #EmergeStrongerTogether.

Read More: [Liveblog] Singapore Budget 2021: Live Coverage, Realtime Updates And Commentary

#1 Singaporean HDB Households Will Continue To Receive GST-USave Vouchers And S&CC rebates

Under the Household Support Package in this year’s budget, Singaporean HDB households will continue to receive GST-USave vouchers and Service & Conservancy Charges (S&CC) rebates.

The GST-USave vouchers are quarterly rebates for Singaporean HDB households to help them offset their utility bills. This will continue in FY2021 and amount between $120 and S$200, depending on the flat type. An additional 50% of the regular GST-USave rebate will be issued over FY2021, amounting to around $120 and $200.

Additionally, the S&CC rebates will be extended for 2021 and this will amount to about 1.5 to 3.5 months of rebate, depending on the flat type. Most households will receive about 2 to 2.5 months of rebate or about $100.

Credit: CNA

#2 Additional $200 GST Voucher – Cash For Eligible Lower Income Singaporeans

The GST Voucher – Cash is issued to eligible lower income Singaporeans, who do not earn more than $28,000 and living in a property with an Annual Value of less than $21,000. Those who qualify will receive an additional $200 in cash payment on top of their regular GST Voucher – Cash in 2021.

Read Also: How Much in GST Vouchers (Cash, U-Save, MediSave) Will I Be Getting In 2020?

#3 $100 CDC vouchers For All Singaporean Households

To support local hawkers and neighbourhood retailers, Community Development Councils (CDCs) will be issuing $100 vouchers to every Singaporean households. This is a new initiative, and the vouchers can used at participating neighbourhood hawkers and retailers.

#4 Singaporean Children Will Receive $200 Top-Ups To Their CDA/ Edusave/ PSEA

Every Singaporean child below 21 years of age will receive an additional top-up of $200 through their Child Development Account (CDA), Edusave Account or Post-Secondary Education Account (PSEA) in 2021. This will be on top of the annual Edusave top-up for primary and secondary school students.

Read More: Step-by-Step Guide To Opening A Child Development Account (CDA)

#5 Petrol Prices Will Increase With Immediate Effect

Petrol duty rates are increased by 15 cents per litre for premium petrol and 10 cents per litre for intermediate petrol with immediate effect, from 16 February 2021.

To ease the transition, 1 year of road tax rebates will be given for the different vehicle types. Active Private Hire Car (PHC) drivers and taxi drivers will be given an additional petrol duty rebate of $360 to offset the changes.

Type of Vehicle Using Petrol Amount of Rebates
Private Cars 15% road tax rebate for one year
Taxis/ PHCs

 

15% road tax rebate for one year; and additional Petrol Duty Rebate of $360 disbursed over four consecutive months for active drivers
Motorcycles 60% road tax rebate for one year; and additional Petrol Duty Rebate of $80 for individual owners of motorcycles registered as at the close of 16 February 2021 with engine capacity of 200cc and below, and $50 for individual owners of motorcycles registered as at the close of 16 February 2021 with engine capacity of 201-400cc
Commercial vehicles (i.e. goods vehicles, goods-cum-passenger vehicles, and buses) 100% road tax rebate for one ye

Source: LTA

#6 Incentives for Electric Vehicle (EV) Adoption

To incentivise the adoption of EVs in Singapore as part of Singapore’s Green Plan 2030, the Additional Registration Fee (ARF) floor will be lowered from $5,000 to $0 for electric cars from Jan 2022 to Dec 2023. Along with the rebates from the EV Early Adoption Incentive (EEAI), buyers of new fully electric cars could save up to S$45,000.

Additionally, the Government is rolling out the deployment of 60,000 charging points at public carparks and private premises by 2030, an increase of its initial target of 28,000. In total, $30 million over the next five years will be set aside for electric vehicle related initiatives.

Read More: How Much Will It Cost To Buy And Own The Tesla Model 3 In Singapore?

#7 GST For Imported Lower Value Goods Will Be Imposed From 2023

To level the playing field between local business and overseas suppliers, the Goods & Services Tax (GST) will be imposed on imported lower value goods. Currently, imported goods below the threshold of $400 are not GST-taxable. This move will improve the competitiveness of local business as all goods will be subject to the same GST, regardless of origin.

#8 Extension of Job Support Scheme (JSS), Jobs Growth Incentive (JGI) and Wage Credit Scheme

Due to the support of the JSS and JGI, local employment has been partially sheltered from the full economic fallout from the pandemic. Under Budget 2021, these employment assistance schemes are extended for 2022 but tapered down to 30% and 10% depending on the sectors.

Additionally, Wage Credit Scheme who helps fund wage increases for Singaporeans is also extended for another year.

Read More: Wage Credit Scheme: Government Co-Funding For Employee Salary Raises (And When Businesses Will Receive Payment In 2021)

#9 Extension of SGUnited Skills, Traineeship and Midcareer Pathway Programmes

SGUnited Skills, Traineeship and Midcareer Pathway Programmes will be extended for another year and extended to fresh graduates of 2021. Under this extension, another 35,000 traineeship and training opportunities to be created.

#10 Extension Of Charitable Giving Incentives

To help charities fundraise and support more affected individuals, the Government is extending existing charitable giving incentives. The 250% tax deduction for eligible IPC donations extended to end of 2023. Support for dollar-for-dollar matching for eligible charities under Tote Board’s Enhanced Fund-Raising Programme will be extended for a year. Likewise, ComChest SHARE As One matching period extended to 2023. Business and IPC Partnership Scheme to encourage corporate companies’ involvement in charitable work is also be extended to 2023.

Additionally, $20 million set aside for new Change for Charity grant to encourage businesses to include charitable giving element by incorporating giving into customer transactions. To encourage the community to innovate in charitable areas, $50 million will be set aside for this under CDC’s Care and Innovation Fund.

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