Many countries are handing out cash payouts but Singapore probably gave the highest on a per capita basis. But unlike USA (ahem), we are drawing from accumulated reserves. Not debt!
Surprisingly US dollar is strengthening right now when it's real long term value is going to negatively impacted by devaluation. 2 Trillion dollars has been added as debt... but that's a separate topic.
This summary below is for Singaporean households with SOLIDARITY BUDGET factored in. Hope it helps and do share to friends!
1) Cash payout to ALL Singaporeans aged 21 and above
April 2020 cash payout
From the latest update from the Solidarity Budget, the cash payout will now be S$600.
You will receive to your bank account as soon as 14 April 2020 or by cheque from 30 April 2020.
June 2020 cash payout
A) Parents: You will receive S$300 if you have at least one child aged 20 years and below
B) Enhanced care and support cash: If your income is less than $100,000 and own less than 1 property, you'd get worth up to $600.
C) Singaporeans age 50 and above: $100 will be made to your PAssion card
2) Self-Employed payouts
I'm self employed as a professional financial adviser (profile here) so this piqued my interest the most.
$3,000 each will be paid in May, July and Oct 2020.
Solidarity budget has slight expansion to the qualifying criteria
- include self-employed persons who also earn a small income from employment work.
- increase the annual value threshold from S$13,000 to S$21,000
Read more here on the latest changes. No changes to married Singapore Self employed person.
Btw for self employed, all the while you can qualify for Reimbursement on Government-Paid Childcare Leave if you have kids.
I realised some of my self-employed friends are unaware of it.
For less than 7yo, the Government will pay for the 4th to 6th day of child care leave. This means that the Government will reimburse your employer (or yourself, if you are self-employed) for a maximum of 3 child care leave days over a 12-month relevant period. It is capped at $500 per day.
3) Defer income tax
For this portion, go to IRAS directly to apply.
Deferring tax payment is just postponing it interest free (not waiving off). By why not...
4) Defer insurance premiums
Life insurers have issued their respective guidelines for deferment of life and health insurance premiums.
They differ slightly but in general, below are the 4 conditions for deferring life insurance premiums.
5) Temporary relief fund $500
The eligibility criteria for the Temporary Relief Fund are as follows:
- Singapore Citizens or Permanent Residents aged 16 years and above.
- Was retrenched or suffered substantial (at least 30%) loss of personal income due to COVID-19.
- Had a gross monthly household income of ≤$10,000, or a gross monthly per capita income of ≤$3,100 prior to loss of job or income; and
- Not a current beneficiary of ComCare assistance, i.e. Long-Term Assistance, Short-to-Medium-Term Assistance, Interim Assistance.
It is a $500 cash assistance. Please check link for full details here
Assistance provided is mainly for the needy as there has been some reports of exploitation.
Application can be at CC or online.
6) Defer residential property mortgage payment
There is actually a deferment of residential property loan.
This initiative offered by banks and finance companies is intended can help you defer repayment of the principal or both principal and interest up to 31 Dec 2020.
Repayment deferments is NOT automatic as it will incur you higher total interest costs so use it if need only.
Hence, I'd recommend you to read this FAQ by MAS
Also, for my private clients, I've always been an advocate of financial prudence on mortgage. This is a highly discussed topic and my sharing on how it works. Hope the video below helps.
Conclusion and summary of government sources
The budget cash payouts are automatically qualified by on income tax sources.
For the rest of the hacks, do take take some time to check if they can benefit you.