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5 Ways the Singapore Budget 2021 Affects Families

singapore budget 2020
Family LifePost Category - Family LifeFamily Life - Post Category - MoneyMoney

Heard the Singapore Budget 2021 buzz but not sure how it affects you? From GST vouchers to incentives for electric vehicles, here’s how the new measures will help families in Singapore in the year ahead

We did the heavy lifting so you don’t have to – keep scrolling to learn more about how the measures just announced in the Singapore Budget 2021 apply to families in Singapore.

1. Budget 2021: Cash Payouts & Savings

GST Vouchers

All eligible lower- and middle-income households (check your eligibility here) will receive a one-off GST Voucher special payment of $200 in cash in June 2021.

Savings on Utilities

The eligible lower- and middle-income households will also receive a special GST Voucher U-Save payment (utilities) amounting to an additional 50% rebate, or between $120 and $200, in April and July 2021.

CDA, Edusave or PSEA Top-up

Families with children will receive an additional top-up of $200 for each Singaporean child under 21 through their relevant education account – whether it’s the Child Development Account (CDA), Edusave Account or Post-Secondary Education Account (PSEA). This can be used to pay off school fees, and even fees for school excursions and more!

Hawker Centre Vouchers

All Singaporean households will receive $100 worth of Community Development Council (CDC) Vouchers, to be used at participating heartland shops and hawker centres.

HDB Conservancy Rebates

Eligible Singaporean households living in HDB flats will receive rebates to offset 1.5 to 3.5 months of service and conservancy charges over the year, depending on their HDB flat type. That’s up to over three months of free service and conservancy charges a year! The rebates will be disbursed in April, July and October 2021, and January 2022.

2. Going Green in 2021

singapore budget 2021 electric vehicles land transport authority
Image: Land Transport Authority via Facebook

Encouraging Electric Vehicles

All vehicles with internal combustion engines will be phased out by 2040. The Land Transport Authority (LTA) has introduced the Electric Vehicle (EV) Early Adoption Incentive, with a rebate of up to 45% (capped at $20,000) on the additional registration fee for those buying fully electric cars and taxis from now till January 2023. EVs and some hybrid vehicles will also be taxed less. By 2030, the Government aims to deploy up to 60,000 public charging points for EVs, up from 1,600 currently.

There will be changes to registration fees and road tax to narrow the cost differential between electric cars and internal combustion engine cars. There will be an increase in petrol duty rates by up to $0.15 per litre for premium petrol with immediate effect. To ease the transition there will be more road tax rebates available, including a 15% road tax rebate for one year for all taxis and private hire cars using petrol.

Read more: The Best 7-Seater Family Cars in Singapore

3. Jobs Support Scheme & Salary Boost for Healthcare Workers

career switch advice

Jobs Support

The SGUnited Jobs and Skills Package will aim to support the hiring of 200,000 locals and provide up to 35,000 training opportunities this year. If you need more support in landing a job, check out the available SGUnited schemes for skills training, traineeships and mid-career pathways.

         Read more: Flexible Part-time Jobs for Mamas in Singapore

Salary Enhancements for Nurses & Healthcare Workers

The Budget introduces salary enhancements for nurses and other healthcare workers, such as support care staff, to thank them for their service during the COVID-19 pandemic. The salary boost will apply to workers across public healthcare institutions, publicly-funded community hospitals and long-term care service providers.

4. Announced in last year’s Budget: More Assistance for School Fees & School Meals

singapore budget 2020 education preschool subsidies kindergarten
Image: Ministry of Education via Facebook

Preschools

Currently just over half of the preschools in Singapore are government-supported preschools, but by 2025 the share of government-supported preschools will climb to 80%. This will mean more preschools receiving government funding, and parents being able to place their children in a bigger pool of eligible preschools with affordable school fees. Click here for more information on subsidised school fees and fee cap information.

Local Secondary Schools, Pre-university & Institutes of Higher Education

  • All students will get higher transport subsidies, and for secondary school students, more school meal subsidies.
  • Pre-university students from lower-income families will get up to $1,000 under the Education Ministry’s Financial Assistance Scheme, raised from $900 previously.
  • Full-time Institute of Technical Education (ITE) students from the lowest-income families will now receive a 100% fee subsidy.

5. $500 SkillsFuture credit top-up for Singaporeans aged 25 and older

Now would be the perfect time to learn a new skill thanks to the $500 SkillsFuture credit top-up for every Singaporean aged 25 and older. Now eligible for use and expiring by December 2025, Singaporeans are encouraged to make use of the current economic slowdown to attend available courses under the SkillsFuture scheme. From coding to cupcake-baking to learning Japanese, there are hundreds (if not thousands) of courses available; click here to browse the amazing course catalogue. P.S. Those aged 40 to 60 will also get another top-up of $500!

Read more: All About Upskilling and Why It’s the Key to Lifelong Learning

GST Hike & A Note to Online Shoppers

The increased GST will be in place sometime between 2022 and 2025 (so spend while you can, mamas!). We’re also looking forward to some relief when the tax is eventually raised, in the form of a $6 billion Assurance Package. If you’re an avid online shopper (aren’t we all?), note that Singapore will extend GST to imported low-value goods with effect from 1 January 2023.

For more on all the new measures announced in the Singapore Budget 2021, visit www.mof.gov.sg/singaporebudget

All info extracted from Ministry of Finance Lead image sourced via Getty; expressway image by Land Transport Authority; working from home image sourced via Pexels; classroom image by Ministry of Education;

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