Singapore Budget 2011 in Summary
Minister for Finance Tharman Shanmugaratnam unveiled Singapore Budget 2011 on Friday in Parliament.
The announced package by the Minister included various payouts, top-ups, as well as tweaks to existing systems amongst other initiatives.
The following are some of the points of his Budget speech that I found more relevant and worth highlighting.
Economy
- Economy has done well, record 14.5% GDP growth in 2010.
- Recovery was faster than most economies; Outlook for US, Eurozone and Japan challenging with recovery expected to take at least another four years.
Outlook
- Government expects Singapore’s economy to grow by between 4% to 6% in 2011.
- 21,300 new skilled jobs to be created by investments in 2010 once projects are realised.
Dealing with Inflation
- Inflation was 4.6% year-on-year in December 2010, expected to be around 3% to 4% in 2011.
- Manage medium-term inflation through Singapore dollar exchange rate – SGD was allowed to appreciate over the last 18 months to counter inflation in imported goods However, sharp appreciations will disrupt export.
- Government to monitor excessive price raises by businesses.
- Greater subsidies for needy in health, education, housing etc.
- Continue to grow Singaporeans’ incomes
Income and Retirement Schemes
- Aim to raise incomes by 30% in real terms over next 10 years.
- One-off 50% more Workfare Income Supplement in 2010, 25% more in 2011 and 2012, payable in cash.
- Employer’s CPF contribution increased from 15.5% to 16%. Additional 0.5% to go to Special Account.
- CPF Salary Ceiling to increase from $4,500 to $5,000 per month.
- SRS contribution cap to increase from $11,450 to $12,750 for Singaporeans/PRs from 1st September 2011 onwards.
Tax
- Lower income tax.
Current Tax Structure | Tax Structure w.e.f. YA 2012 | ||||||
---|---|---|---|---|---|---|---|
Chargeable Income ($) | Tax Rate (%) | Gross Tax Payable ($) | Chargeable Income ($) | Tax Rate (%) | Gross Tax Payable ($) | ||
On the first | 20,000 | 0 | 0 | On the first | 20,000 | 0 | 0 |
On the next | 10,000 | 3.5 | 350 | On the next | 10,000 | 2 | 200 |
On the next | 10,000 | 5.5 | 550 | On the next | 10,000 | 3.5 | 350 |
On the next | 40,000 | 8.5 | 3,400 | On the next | 40,000 | 7 | 2,800 |
On the next | 80,000 | 14 | 11,200 | On the next | 40,000 | 11.5 | 4,600 |
On the next | 160,000 | 17 | 27,200 | On the next | 40,000 | 15 | 6,000 |
In excess of | 320,000 | 20 | On the next | 40,000 | 17 | 6,800 | |
On the next | 120,000 | 18 | 21,600 | ||||
In excess of | 320,000 | 20 |
- Tax rebate of 20% capped at $2,000 for YA 2011.
Support for Children
- Aged 6 and below to receive $300 to $400 in Children Development Accounts.
- Subsidies for kindergarten available to more families up to $3,500 in monthly gross income.
CPF Medisave Top-Up
- One-time top up of Medisave Account on 1st May 2011.
Assessable Income for Year of Assessment 2010 | Annual value of Residence (as at 31st December 2010) | |
---|---|---|
Up to $7,000 | More than $7,000 | |
Up to $30,000 | Aged 45-49: $300 Aged 50-59: $400 Aged 60-69: $500 Aged 70-79: $600 Aged 80+: $700 |
Aged 45-49: $200 Aged 50-59: $300 Aged 60-69: $400 Aged 70-79: $500 Aged 80+: $600 |
Growth Dividends
- One-time cash payout on 1st May 2011
Aessable Income for YA 2010 | Annual Value of Residence (as at December 2010) | ||
---|---|---|---|
Up to $7,000 | $7,001 to $13,000 | More than $13,000 | |
Up to $30,000 | $800 | $600 | $300 |
$30,001 to $100,000 | $600 | ||
More than $100,000 | $100 | ||
NSFs/NSmen | +$100 |
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