Budget 2006: Key Budget Initiatives

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	Budget 2006

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Key Budget Initiatives

Sharing the Fruits of Growth: Progress Package

The Government is sharing its budget surpluses with all Singaporeans. The Progress Package will benefit everyone, but will provide more benefits to those who have lower incomes. The Progress Package will cost the Government $2.6 billion.

Growth Dividends for All Adult Singaporeans
All adult Singaporeans will get Growth Dividends ranging from $200 to $800. Close to half of all adult Singaporeans will get the maximum $800.

	Annual Value of Home $6,000 or less	Annual Value of Home more than $6,000 and up to $10,000	Annual Value of Home more than $10,000
Annual Assessable Income $24,000 or less	$800	$600	$200
Annual Assessable Income more than $24,000	$600	$400	$200

Workfare Bonus to Reward Low-Wage Workers for Work
Low-wage Singaporeans who earn $1,500 or less per month through regular work will receive Workfare Bonuses ranging from $150 to $1,200 in two portions.

Average Monthly Income	Bonus to be paid on 1st May, 2006 and 2007^*
$400 and below	1.5 months salary, or $75, whichever is higher
Above $400 to $900	$600
Above $900 to $1,200	$400
Above $1,200 to $1,500	$200

^* Bonus to be paid in 2006 for working at least 6 continuous months in 2005 and to be paid in 2007 for working at least 6 continuous months in 2006.

Rebates to Help Lower-Income Households
Lower-income households will get Utilities-Save (U-Save) rebates ranging from $60 to $200. They will also continue to get rebates on up to 4 months of Service & Conservancy Charges (S&CC) and up to 3 months of rent.

HDB Flat Type	U-Save Rebates	S&CC Rebates	Rental Rebates
1-room	$200	4 months	3 months
2-room	$200	3 months	1.5 months
3-room	$100	2 months	-
4-room	$80	1.5 months	-
5-room	$60	0.5 months	-

CPF Top-ups to Help the Elderly meet Retirement and Healthcare Needs
Singaporeans aged 50 and above will get CPF top-ups ranging from $100 to $800 depending on the Annual Value of their homes.

Age	Annual Value of Home $6,000 or less	Annual Value of Home more than $6,000 and up to $10,000	Annual Value of Home more than $10,000
50- 59	$600	$400	$100
60 & above	$800	$600	$200

Half of the amount will go into the CPF Special/Retirement Account and the other half into the CPF Medisave Account

The Government will top up the Eldercare Fund and Medifund by $100 million each.

Opportunity Funds for Students
The Government will set aside $50 million for Opportunity Funds in all schools and community self-help groups, namely CDAC, MENDAKI, SINDA and the Eurasian Association, to provide students from lower-income families with more enrichment and learning opportunities, such as the purchase of computers and overseas study trips.

NS Bonus to Recognise the Contributions of NSmen
Singaporeans who are serving or who have served National Service (NS) will receive the 40^th Anniversary NS Bonus.

NS status	Amount
Full-time national servicemen (NSFs) Operationally ready NSmen who have not completed their operationally ready national service (ORNS) training cycle	$100
NSmen who have completed their ORNS training cycle NSmen who are above statutory age (i.e. 40 years old for non-officers and 50 years old for officers)	$400

In addition to this one-off NS Bonus:

NSmen who complete their ORNS training cycle in future will receive the ORNS Completion Award of $300.
NS key appointment holders will get an additional $2,000 tax relief over and above what they normally receive as NSmen.

To Sign Up for the Progress Package
Singaporeans will get a letter from the CPF Board in late March 2006 informing them of their Progress Package. To receive their Progress Package on 1 May 2006, they must sign up through ATMs, the Progress Package website or hard copy forms.