Singapore Budget 2008 & your CPF

Our 2008 Budget Report was released by our Finance Minister Tharman Shanmugaratnam on 15th Feb. There was issues relating to Individuals and Businesses. The 2 major issues closely related to Individuals are the Tax/Duties as well as initiative linked to CPF.

I like to share with you those that are linked to our CPF.

(Summarised from http://www.cpf.gov.sg/)

1) Life Bonus

* CPF Life was earlier announced as the new CPF retirement scheme for those with more than $40,000 in the CPF Minimum Sum at age 55.

* This Life Bonus is an "Ang Bao" for those aged 46 to 50 this year, with annual income less than $54,000 and Annual Value of house of less than $11,000 ,who enrol into the Life Scheme.

* The payout amount varies for different age, income and housing size.

* If you are part of the above I described, find out how much you can get. (Max $4,000 / Min $660)

2) CPF Minimum Sum Topping up Scheme

Individuals can claim tax relief up to $7,000 for cash top-ups by themselves or their employers to their own Minimum Sum and cash top-ups to siblings, spouses, parents and grandparents’ Minimum Sums, regardless of the age of the recipients.

3) Growth Dividend

* Growth Dividends will be given to all adult Singaporeans, to be paid out in two instalments in April and October this year.

* The amount varies for different Age, Annual Income, Annual Value of house and whether serving NS. (Max $700 / Min $100)

4) Top for for CPF Medisave Account

The Government will top up the Medisave accounts of all those aged 51 and above this year. (Max $450 / Min $150)

5) Tax Relief for Voluntary Contribution to Medisave Account

Individuals will now be able to claim tax relief for voluntary contributions that they make specifically to their own Medisave Account up to a cap of ($26,393 less mandatory contributions) per year of assessment

6) New arrangement for SRS (Supplementary Retirement Scheme)

a) Employers are now allowed to directly contribute to the SRS on behalf of their employees.

b) Age limit on contributions to the SRS will be removed

Above are just teasers, for details, look into the CPF website.