Budget 2024 aims to help taxpayers cope with the rising costs of living amidst the uncertain economic outlook by providing targeted and meaningful relief measures. This is in line with the Government's overall vision of building a stronger and more united nation, where no one is left behind.
Enhanced support for lower and middle income groups
One of the key measures is the 50% Personal Income Tax Rebate, capped at a maximum of $200. The tax rebate will benefit Singapore resident taxpayers for YA 2024, in particular middle-income earners given the cap of $200.
Another measure is the increase of the annual income threshold for dependant-related reliefs from $4,000 to $8,000, with effect from YA 2025. This will allow more resident taxpayers to claim dependent reliefs for dependants who are working part time or have alternative sources of income.
To support resident lower-wage employees, the wage ceiling for the co-funding under the Progressive Wage Credit Scheme will be increased to $3,000. This scheme has been successful in providing support to uplifting wages of workers, to relieve the effects of exponentially rising costs. In addition, the impact to business costs is alleviated by an increase in the Government’s co-funding from 30% to 50%.
Reskill our Workforce
We are witnessing a talent crunch across the world amidst a shift towards digitisation. In a proactive move to strategically invest in human capital by targeting the most vulnerable mid-career workforce, all Singaporeans aged 40 and above will be given a SkillsFuture Credit top-up of $4,000 to encourage them to reskill themselves. The scope of this top-up is very targeted, focusing on skills which offer better employability outcomes. In addition, Singaporeans aged 40 and above who have previously received government subsidies or sponsorships for a diploma or higher qualification will be eligible for the Mid-Career Enhanced Subsidy for another subsidised full-time diploma at qualifying tertiary institutions from the Academic Year 2025.
To partially offset the income loss from taking time off from work to undertake qualifying full-time training, eligible mid-career Singaporean workers aged 40 and above will receive an allowance of 50% of the individual’s average income over the latest 12-month period, subject to a cap of $3,000 per month and up to a maximum of 24 months. More details will be provided at the MOE Committee of Supply.
This substantial investment is a much needed step in the right direction for mid-career workers whose skill sets may have become less relevant with newer technology and digitisation, compounded by younger workers with better equipped skills entering the workforce. This initiative will allow them to reskill and upskill to potentially transition into new roles and industries.
Concurrently, the introduction of the new ITE Progression Award for graduates aged 30 and below should allow for a better career trajectory for them. This step signals the broadening of the definition of success, at the same time increasing the supply of talents skilled in technical hands-on abilities to address the labour crunch in various sectors.
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