Increasing Earned Income Relief Granted to Persons with Disabilities
Ministry of FinanceSpeakers
Summary
This question concerns Mr Ong Hua Han’s inquiry regarding increasing the Earned Income Relief (EIR) for persons with disabilities and making assistive technology expenses tax-deductible. Minister for Transport and Second Minister for Finance Chee Hong Tat responded that persons with disabilities currently receive a higher EIR of up to $12,000 and are supported by the Enabling Employment Credit and Open Door Programme. He explained that SG Enable provides job matching and training services, including through the newly launched Enabling Business Hub. Regarding tax-deductibility, Minister for Transport and Second Minister for Finance Chee Hong Tat stated that personal expenses for assistive technology are generally not deductible. Instead, the Government offers the Assistive Technology Fund, which provides subsidies of up to 90% for equipment costs, subject to a $40,000 lifetime cap for eligible families.
Transcript
46 Mr Ong Hua Han asked the Prime Minister and Minister for Finance (a) whether the Ministry will consider increasing the Earned Income Relief granted to persons with disabilities (PWDs) to encourage more PWDs to work and aspire towards higher wages; and (b) whether expenses incurred by PWDs for the acquisition and maintenance of assistive technology can be included as a tax-deductible expense.
Mr Chee Hong Tat: The Government is committed to helping persons with disabilities lead fulfilling lives. For persons with disabilities who are able to work, we want to provide an inclusive and supportive environment for them to be gainfully employed.
Today, persons with disabilities are eligible for a higher Earned Income Relief (EIR). The Handicapped EIR ranges from $4,000 to $12,000, depending on the age group. In addition, there are various schemes which support the employment of persons with disabilities. These include the Enabling Employment Credit, which provides wage offsets, and the Open Door Programme, which provides grants and employment support services to persons with disabilities and their employers.
SG Enable works with partners, such as the Autism Resource Centre and the Movement for the Intellectually Disabled of Singapore (MINDS), to provide up to one year of job matching, training and other support services for persons with disabilities. In 2023, SG Enable also launched the Enabling Business Hub, which seeks to bring training and employment opportunities closer to the homes of persons with disabilities.
Generally, personal expenses, including costs incurred on assistive technology, are not tax-deductible. Nonetheless, the Government supports persons with disabilities in acquiring and maintaining assistive technology to improve their quality of life. Eligible persons with disabilities from lower- and middle-income families can tap on the Assistive Technology Fund and receive subsidies of up to 90% of the cost of the required equipment, subject to a lifetime cap of $40,000.