With effect from 1 April 2020, the government will be providing a once-off $10,000 SFEC credit to encourage companies to further develop their capabilities and to boost their workers’ skills sets. This credit will be used to defray up to 90% of such out-of-pocket expenses.
The $10,000 credit can be used for the following 2 categories.
|Productivity Solutions Grant (PSG)||
Only up to $7,000 of credit can be used
|Enterprise Development Grant (EDG)|
|Market Readiness Assistance (MRA)|
Companies that have successfully received partial funding through the above programmes, can further claim up to 90% of the unfunded portion. However, only a maximum of $7,000 SFEC credit can be used under this category.
Company ABC received approval for their PSG grant application to implement Xero Cloud Accounting system. The package price is $5,527. After getting 80% funding from PSG, Company ABC can still further claim up to 90% of the balance unfunded cost through SFEC. With both PSG and SFEC, Company ABC only needs to bear $110.54 for a full Xero Cloud Accounting system worth over $5,500!
|Package Price for Xero||$ 5,527.00|
|Less 80% funding from PSG||$ 4,421.60|
|Balance unfunded||$ 1,105.40|
|Less 90% funding from SFEC||$ 994.86|
|Balance payable||$ 110.54|
** If E-Invoice Registration Subsidy is applicable, companies can further claim another $200 to offset the full cost of the system.
|Skills Framework-Aligned Courses||
Full sum of up to $10,000 of credit can be used
|Professional Conversion Programme (PCP)|
Similarly, companies with employees who have undergone the above training programmes can also further claim up to 90% of the unsupported course fees. The full SFEC credit of $10,000 can be used under this category.
Company XYZ sent one of their employees for a 2-day Digital Marketing course under the Skills Framework. The original course fee was $480. Under the Skills Development funding, a $25 funding would be provided for every hour of training. After getting this funding, Company XYZ can still further claim up to 90% of the balance unfunded course fee through SFEC. Eventually, Company XYZ only needs to pay $8 for every employee sent for this training!
|Course Fee||$ 480.00|
|Less Skills Devt funding ($25x16hrs)||$ 400.00|
|Balance unfunded||$ 80.00|
|Less 90% funding from SFEC||$ 72.00|
|Balance payable||$ 8.00|
To be eligible for SFEC, companies must fulfil the following 3 conditions:
The SFEC credit will close for application by 31 March 2021.