To share the fruits of economic growth in 2010, the Government will give Growth Dividends to all adult Singaporeans aged 21 years old and above in 2011.
Singaporeans with lower incomes or who live in smaller homes will receive a larger Dividend. The majority of Singaporeans will receive $600 to $800 each.
Current and ex-NSmen and NSFs, including those below 21 years of age, will receive an additional Growth Dividend of $100, in recognition of their contributions to the nation.
The Growth Dividends will be given to about 2.5 million Singaporeans and cost the Government $1.5 billion.
Singaporeans will receive their Growth Dividends by 1 May 2011. Those who had signed up for the GST Credits between 2007 and 2010 do not need to sign up again and will receive their payout automatically. Those who did not sign up for the GST Credits have to sign up to receive their payout.
CPF Medisave Top-Up
The Government will top up the CPF Medisave Accounts of Singaporeans aged 45 years old and above. Older Singaporeans will receive a higher top-up.
About 1.3 million Singaporeans will benefit from the CPF Medisave Top-Up, which will cost the Government $504 million.
Singaporeans will receive their Medisave Top-Up by 1 May 2011. Those who are CPF members or who have previously signed up for the GST Credits do not need sign up again and will automatically receive their top-up. Non CPF members or those who did not sign up for the GST Credits have to sign up to receive their top-up.
Workfare Special Bonus
A one-off Workfare Special Bonus will be given to workers who qualify for the Workfare Income Supplement (WIS) scheme for work done in 2010, 2011 and 2012. The Workfare Special Bonus will amount to 50% of WIS for work done in 2010, and 25% more WIS each year for work done in 2011 and 2012.
The Workfare Special Bonus will benefit about 400,000 workers each year and is expected to cost the Government about $450 million in total.
The first Workfare Special Bonus payment will be on 15 May 2011. Eligible employees will automatically receive their Bonus payments in cash. Self-employed persons who declare their income and make CPF Medisave contributions will receive half their Bonus in cash, and half in their Medisave Account.
Personal Income Tax Rebates
Individual resident taxpayers will enjoy a personal income tax rebate of 20% for Year of Assessment 2011 (YA2011), capped at $2,000. The PIT rebates will cost the Government $580 million.
Taxpayers do not have to apply for the rebate. The Inland Revenue Authority of Singapore(IRAS) will take into account the rebate when computing the tax bill for YA2011. The amount of rebate will be shown in their income tax bill.
Child Development Credit
The Government has introduced a new Child Development Credit for all Singaporean children aged six and below in 2011. Parents can use the Credit to pay for their children’s preschool, childcare and medical expenses. About 80% of families with young children will receive the higher amount of $400 per child.
The Child Development Credit will benefit over 220,000 children and cost the Government $93 million.
The Credits will be paid into the children’s Child Development Accounts (CDAs), which most children already have. Parents of children without CDAs will be able to open new accounts to receive their Credit. The Ministry of Community Development, Youth and Sports (MCYS) will send letters to parents of eligible children by June 2011. Payment of the Credits will start from July 2011.
Utilities-Save and Service & Conservancy Charges Rebates
To help households to cope with rising expenses, the Government will provide additional Utilities-Save (U-Save) and Service and Conservancy Charges (S&CC) rebates this year.
The additional U-Save and S&CC rebates will benefit over 800,000 households and cost the Government $200 million. This is on top of the U-Save, S&CC and rental rebates for HDB flats given as part of the GST Offset Package introduced in 2007. In total, Singaporeans living in smaller HDB flats will receive more rebates.
Eligible households will be notified by April 2011. They do not need to do anything to receive the rebates.
Other components of the ‘Grow & Share’ Package
As part of the ‘Grow & Share’ Package, the Government will provide a one-off top-up of $4.7 million to the funds of School Advisory Committees and School Management Committees to help needy Singaporean students. Each school will receive between $10,000 and $15,000.
Special education (SPED) schools run by voluntary welfare organisations (VWOs) will also be given an average of $15,000 per school to help needy students.
To provide greater assistance for needy Singaporeans, the Government will set aside $20 million to help VWOs with the professional development of social workers, and $10 million for self-help groups over the next two years.