COVID-19: Solidarity Budget (6 April 2020): Difference between revisions
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===Cash payouts=== | ===Cash payouts=== | ||
The Singapore government has set aside S$1.1 billion to be used for cash payouts.<ref>Lin, Jessica. “[https://www.businessinsider.sg/singapore-is-now-pouring-almost-s60-billion-into-covid-19-measures-including-a-s600-payout-for-all-adult-singaporeans Singapore is now pouring almost S$60 billion into Covid-19 measures, including a S$600 payout for all adult Singaporeans]”. ''Business Insider.'' April 6, 2020. Accessed on 6 April 2020.</ref> | The Singapore government has set aside S$1.1 billion to be used for cash payouts.<ref>Lin, Jessica. “[https://www.businessinsider.sg/singapore-is-now-pouring-almost-s60-billion-into-covid-19-measures-including-a-s600-payout-for-all-adult-singaporeans Singapore is now pouring almost S$60 billion into Covid-19 measures, including a S$600 payout for all adult Singaporeans]”. ''Business Insider.'' April 6, 2020. Accessed on 6 April 2020.</ref> Singaporeans can receive up to S$1,200 in cash payouts by June 2020. | ||
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!Package | !Package | ||
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(ii) Individuals can defer certain contractual obligations like paying rent and repaying loans. | (ii) Individuals can defer certain contractual obligations like paying rent and repaying loans. | ||
The above measures will be legally enforced through a new bill announced on 7 April 2020. | The above measures will be legally enforced through a new bill announced on 7 April 2020.<ref>Matthew Mohan. "[https://www.channelnewsasia.com/news/singapore/solidarity-budget-bill-allow-firms-individuals-defer-contractual-12613720 Solidarity Budget: Bill to allow firms, individuals to defer contractual obligations such as rent 'for a period]<nowiki>''</nowiki>. ''Channel News Asia''. April 6, 2020. Accessed on 7 April 2020.</ref> | ||
==For businesses & workers== | ==For businesses & workers== | ||
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(iii) Businesses can defer certain contractual obligations like paying rent and repaying loans.* | (iii) Businesses can defer certain contractual obligations like paying rent and repaying loans.* | ||
<nowiki>*</nowiki>This above measure will be covered in the new bill to be announced on 7 April 2020. | <nowiki>*</nowiki>This above measure will be covered in the new bill to be announced on 7 April 2020.<ref>Matthew Mohan. "[https://www.channelnewsasia.com/news/singapore/solidarity-budget-bill-allow-firms-individuals-defer-contractual-12613720 Solidarity Budget: Bill to allow firms, individuals to defer contractual obligations such as rent 'for a period]<nowiki>''</nowiki>. ''Channel News Asia''. April 6, 2020. Accessed on 7 April 2020.</ref> | ||
===Enhanced Job Support Scheme (JSS) – for Singaporean employees=== | ===Enhanced Job Support Scheme (JSS) – for Singaporean employees=== | ||
| Line 57: | Line 57: | ||
(ii) This enhanced scheme applies to '''<u>all local employees</u>''' across all firms in Singapore. | (ii) This enhanced scheme applies to '''<u>all local employees</u>''' across all firms in Singapore. | ||
The first JSS payout has been brought forward from May to April 2020. | The first JSS payout has been brought forward from May to April 2020.<ref>"[https://www.iras.gov.sg/irashome/Schemes/Businesses/Jobs-Support-Scheme--JSS-/ Jobs Support Scheme (JSS)]". ''Inland Revenue Authority of Singapore.'' Assessed on 7 April 2020.</ref> | ||
===Enhanced income relief (SIRS) – for self-employed persons=== | ===Enhanced income relief (SIRS) – for self-employed persons=== | ||
| Line 65: | Line 65: | ||
(ii) Individuals who are self-employed but still earn a small income from employment work are now included in the scheme. | (ii) Individuals who are self-employed but still earn a small income from employment work are now included in the scheme. | ||
(iii) | (iii) Individuals living in properties with an annual value* of (up to) '''<u>$21,000**</u>''' are eligible for the scheme.<ref>Ho, Olivia. "[https://www.straitstimes.com/politics/covid-19-self-employed-relief-scheme-to-include-those-with-some-employment-income-higher Covid-19 self-employed relief scheme extended to those with some employment income, higher property annual value]". ''The Straits Times''. April 6, 2020. Accessed on 7 April 2020.</ref> | ||
<nowiki>*</nowiki>Estimated monthly rent x 12-months = Annual Property Value<ref>Sim Kang Heong. "[https://dollarsandsense.sg/annual-value-av-home-heres-calculated-matters/ Annual Value (AV) Of Your Residential Property: Here’s How Its Calculated And Why It Matter]s". ''Dollars and Sense''. March 28, 2020. Accessed on 11 April 2020.</ref> | |||
<nowiki>**</nowiki>This has been increased from the previous threshold value of $13,000.<ref>"[https://www.mom.gov.sg/newsroom/press-releases/2020/0327-about-88000-to-automatically-benefit-from-self-employed-person-income-relief-scheme About 88,000 to automatically benefit from Self-Employed Person Income Relief Scheme]". ''Ministry of Manpower''. March 27, 2020. Accessed on 7 April 2020.</ref> | |||
===Reducing the cost of foreign workers=== | ===Reducing the cost of foreign workers=== | ||
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(ii) Employers will receive a '''<u>$750 foreign levy rebate</u>'''* for each employee holding a work permit or an S-pass. | (ii) Employers will receive a '''<u>$750 foreign levy rebate</u>'''* for each employee holding a work permit or an S-pass. | ||
<nowiki>*</nowiki>Eligible employers will receive the rebates as early as 21 April 2020. | <nowiki>*</nowiki>Eligible employers will receive the rebates as early as 21 April 2020.<ref>See, Sharon. "[https://www.businesstimes.com.sg/government-economy/singapore-budget-2020/solidarity-budget-aprils-foreign-worker-levy-waived Solidarity Budget: April's foreign worker levy waived]". ''The Business Times''. April 6, 2020. Accessed on 7 April 2020.</ref> | ||
===Support for enterprises=== | ===Support for enterprises=== | ||
The government risk share of loans taken by enterprises will increase from '''<u>80 to 90%</u>'''. | The government risk share of loans taken by enterprises will increase from '''<u>80 to 90%</u>'''. | ||
The above applies for loans taken under the following schemes - (i) Temporary Bridging Loan Programme (ii) Enterprise Financing Scheme (EFS) – SME Working Capital Loan (ii) Enterprise Financing Scheme (EFS) – Trade Loan. The new scheme will apply to loans initiated from 8 April 2020 to 31 March 2021. | The above applies for loans taken under the following schemes - (i) Temporary Bridging Loan Programme (ii) Enterprise Financing Scheme (EFS) – SME Working Capital Loan (ii) Enterprise Financing Scheme (EFS) – Trade Loan. The new scheme will apply to loans initiated from 8 April 2020 to 31 March 2021.<ref>Choo Yun Ting. "[https://www.straitstimes.com/politics/government-to-increase-risk-share-on-loans-to-90-per-cent-to-ensure-credit-access-for-firms Govt to increase risk share on loans to 90 per cent to ensure credit access for firms during Covid-19 crisis: DPM Heng]". ''The Straits Times''. April 6, 2020. Accessed on 7 April 2020.</ref> | ||
==References / Citations== | ==References / Citations== | ||
Latest revision as of 17:28, 11 April 2020
This entry is a part of Wiki.sg's coverage on the evolving COVID-19 situation in Singapore. For more COVID-19 stories, click here.
The Solidarity Budget[1] is the third round of government support measures to help tide Singaporean businesses and households through the COVID-19 pandemic. This budget statement was preceded by the Unity Budget (February 18) and the Resilience Budget (March 26).[2] It was announced in response to the four-week-long “circuit-breaker” in Singapore starting from 7 April 2020.[3] Most measures mentioned in the Solidarity Budget are built upon those already mentioned in the previous two budget statements.
For adult Singaporeans
Cash payouts
The Singapore government has set aside S$1.1 billion to be used for cash payouts.[4] Singaporeans can receive up to S$1,200 in cash payouts by June 2020.
| Package | Beneficiary | Amount | Given By |
|---|---|---|---|
| Solidarity Payment[5] | All Singaporeans above 21 years old | $600 | 14 April 2020 – bank accounts |
| 30 April 2020 – cheques | |||
| Care & Support Package | Eligible Singaporeans above 21 years old | + $300* / $600** | June 2020 |
| Singaporean parents (with children below 20 years old) | + $100 | ||
| Singaporeans 50 years old and above | + $100 PAssion care top-up |
*For Singaporeans with an annual income of not more than S$28,000.
**For Singaporeans with an annual income between S$28,000 and S$100,000.
Rent support
The following measures have been put in place to alleviate the financial burdens related to tenancy.
(i) Property owners must pass on the full property tax rebate to tenants.
(ii) Individuals can defer certain contractual obligations like paying rent and repaying loans.
The above measures will be legally enforced through a new bill announced on 7 April 2020.[6]
For businesses & workers
The Singapore government has set aside S$4 billion to support businesses and workers.[7] The amount encapsulates the following measures.
Rental waivers – for store owners
(i) The rental waiver for industrial, office and agriculture tenants of government agencies has been increased from two weeks to one month.
(ii) Stall-owners in NEA hawker centres and commercial tenants are entitled to three months and two months of waived rent respectively.
(iii) Businesses can defer certain contractual obligations like paying rent and repaying loans.*
*This above measure will be covered in the new bill to be announced on 7 April 2020.[8]
Enhanced Job Support Scheme (JSS) – for Singaporean employees
The Job Support Scheme was first introduced in the Unity Budget in February 2020. The details of the Enhanced Job Support Scheme are as follows.
(i) All firms will have 75% of their employees' wages subsidised for April.
(ii) This enhanced scheme applies to all local employees across all firms in Singapore.
The first JSS payout has been brought forward from May to April 2020.[9]
Enhanced income relief (SIRS) – for self-employed persons
The Self-employed Person Income Relief Scheme (SIRS) has also been enhanced to include the following.
(i) Self-employed persons will receive three $3,000 payments in May, July and October 2020.
Other than the above, the eligibility criteria of the scheme have also expanded to include more beneficiaries.
(ii) Individuals who are self-employed but still earn a small income from employment work are now included in the scheme.
(iii) Individuals living in properties with an annual value* of (up to) $21,000** are eligible for the scheme.[10]
*Estimated monthly rent x 12-months = Annual Property Value[11]
**This has been increased from the previous threshold value of $13,000.[12]
Reducing the cost of foreign workers
(i) The monthly foreign levy due in April will be waived.
(ii) Employers will receive a $750 foreign levy rebate* for each employee holding a work permit or an S-pass.
*Eligible employers will receive the rebates as early as 21 April 2020.[13]
Support for enterprises
The government risk share of loans taken by enterprises will increase from 80 to 90%.
The above applies for loans taken under the following schemes - (i) Temporary Bridging Loan Programme (ii) Enterprise Financing Scheme (EFS) – SME Working Capital Loan (ii) Enterprise Financing Scheme (EFS) – Trade Loan. The new scheme will apply to loans initiated from 8 April 2020 to 31 March 2021.[14]
References / Citations
- ↑ “Solidarity Budget”. Singapore Budget. Accessed on 6 April 2020.
- ↑ Lim, Yan Liang. “Third round of Budget measures to help S'pore through Covid-19 situation to be rolled out on April 6: DPM Heng Swee Keat”. The Straits Times. April 5, 2020. Accessed on 6 April 2020.
- ↑ Lee, U-Wen and See, Sharon. “Solidarity Budget to help tide through 'circuit-breaker' period: DPM Heng”. Business Times. April 6, 2020. Accessed on 6 April 2020.
- ↑ Lin, Jessica. “Singapore is now pouring almost S$60 billion into Covid-19 measures, including a S$600 payout for all adult Singaporeans”. Business Insider. April 6, 2020. Accessed on 6 April 2020.
- ↑ "Solidarity Budget Booklet". Singapore Budget. April 6, 2020. Accessed on 6 April 2020.
- ↑ Matthew Mohan. "Solidarity Budget: Bill to allow firms, individuals to defer contractual obligations such as rent 'for a period''. Channel News Asia. April 6, 2020. Accessed on 7 April 2020.
- ↑ Lin, Jessica. “Singapore is now pouring almost S$60 billion into Covid-19 measures, including a S$600 payout for all adult Singaporeans”. Business Insider. April 6, 2020. Accessed on 6 April 2020.
- ↑ Matthew Mohan. "Solidarity Budget: Bill to allow firms, individuals to defer contractual obligations such as rent 'for a period''. Channel News Asia. April 6, 2020. Accessed on 7 April 2020.
- ↑ "Jobs Support Scheme (JSS)". Inland Revenue Authority of Singapore. Assessed on 7 April 2020.
- ↑ Ho, Olivia. "Covid-19 self-employed relief scheme extended to those with some employment income, higher property annual value". The Straits Times. April 6, 2020. Accessed on 7 April 2020.
- ↑ Sim Kang Heong. "Annual Value (AV) Of Your Residential Property: Here’s How Its Calculated And Why It Matters". Dollars and Sense. March 28, 2020. Accessed on 11 April 2020.
- ↑ "About 88,000 to automatically benefit from Self-Employed Person Income Relief Scheme". Ministry of Manpower. March 27, 2020. Accessed on 7 April 2020.
- ↑ See, Sharon. "Solidarity Budget: April's foreign worker levy waived". The Business Times. April 6, 2020. Accessed on 7 April 2020.
- ↑ Choo Yun Ting. "Govt to increase risk share on loans to 90 per cent to ensure credit access for firms during Covid-19 crisis: DPM Heng". The Straits Times. April 6, 2020. Accessed on 7 April 2020.