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Taxpayers, here's what you need to know about Budget 2015

Taxpayers, here's something to cheer.

You'll get a one-off tax rebate of 50 per cent, capped at $1,000 for the Year of Assessment 2015.

About 1.5 million people will benefit.

“The tax rebate demonstrates the government’s focus to ensure that the benefit is most felt by middle and upper-middle income earners.” - Ms Kerrie Chang, partner of human capital at Ernst & Young Solutions LLP

To help Singaporeans set aside more money for retirement,  the CPF ceiling will be raised from $5,000 to $6,000.

Another way of helping people accumulate more CPF savings in their golden years is by raising the cap on Supplementary Retirement Scheme contribution - a voluntary retirement savings programme that complements the CPF system.

Here's how it works:

Increase in Annual Contribution Cap for the Supplementary Retirement Scheme

  Singapore/Singapore Permanent Resident Foreigner
Current Cap $12,750 $29,750
New Cap $15,300 $35,700
 

 

Those with seniors above 50 years old in the family can look forward to more good news: They'll get more CPF contributions from January next year. 

Here's a summary:

Increase in CPF Contribution Rates for Older Workers

  Increase in Contribution Rates
(% of wage)
Employment Age (Years) Contribution by Employer Contribution by Employee Total
Above 50 to 55 +1 +1 +2
Above 55 to 60 +1 - +1
Above 60 to 65 +0.5 - +0.5
 

 

Here are the proposed changes in a nutshell:

New CPF Contribution and Allocation Rates from Jan 1, 2016 for Employees

  Contribution Rates (% of wage) Credited Into (% of wage)
Employee Age (Years) Contribution by Employer Contribution by Employee Total Ordinary Account Special Account Medisave Account Total
35 and below 17 20 37 23 6 8 37
Above 35 to 45 17 20 37 21 7 9 37
Above 45 to 50 17 20 37 19 8 10 37
Above 50 to 55 17 (16+1) 20 (19+1) 37 (35+2) 15 (14+1) 11.5 (10.5+1) 10.5 37 (35+2)
Above 55 to 60 13 (12+1) 13 26 (25+1) 12 3.5 (2.5+1) 10.5 26 (25+1)
Above 60 to 65 9 (8.5+0.5) 7.5 16.5 (16+0.5) 3.5 2.5 (2+0.5) 10.5 16.5 (16+0.5)
Above 65 7.5 5 12.5 1 1 10.5 12.5

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Related reports:

S'pore Budget 2015: Find out what goodies you'll get this year

Families: Here are some Budget 2015 measures to keep cost of living affordable

Singapore BudgetCPFUncategorisedolder workers