Assurance Package For GST: How Much Will Singaporean Households Be Getting Over The Next 5 Years?

In the Singapore Budget 2022 statement, the planned GST increment would be delayed to 2023 and the increase will be split into two steps. The first increase will take effect on 1 January 2023, from 7% to 8%, and the second increase on 1 January 2024 from 8% to 9%. To cushion the impact, the Government had previously announced the $6 billion Assurance Package (AP) for GST in Budget 2020. As part of Budget 2022, the Government will also top up another $640 million to enhance the AP. This would help Singaporean households offset the cost of additional GST expenses.

Update: As announced by DPM during the second reading of the Goods and Services Tax (Amendment) Bill on 7 November 2022, the Assurance Package will be increased by another $1.4 billion. This is to tackle the rising inflation and expected additional GST expenses as household expenditures increase. This will bring the Assurance Package to a total of about $8 billion and details will be released in the Budget 2023 statement.

Here’s how much Singaporean households will be getting over the next 5 years to offset the increase in GST.

Read Also: [Liveblog] Singapore Budget 2022: Live Coverage And Real-Time Commentary

Around 2.8 Million Adult Singaporeans Will Receive Cash Payouts Of Up To $1,600

To offset the increase in GST, Singaporean aged 21 years and above will receive cash payouts amounting to between $700 to $1,600, depending on their income and property ownership. These payouts will be disbursed over five years from 2022 to 2026, with the first payout made in December 2022. Around 2.8 million adult Singaporeans will benefit from this.

Source: Ministry of Finance

For a household of a couple earning an income of $4,500 and no additional property ownership, this would mean a total cash payout of $2,100 over 5 years. Assuming that they stay in a 4-room HDB flat, the GST rate increment is expected to cost an average of $231 additional expenses annually per household member. This cash payout would be able to offset 4.5 years of additional GST expenses for the couple or 3 years of additional GST expenses if they have a child (an additional household member below the age of 21).

Lower Income Singaporean Seniors Will Be Eligible For $600 To $900 GST Vouchers – Cash (Seniors’ Bonus)

Additionally, cash payouts of $600 to $900 will be provided for less well-off Singaporean seniors through the special GSTV – Cash (Seniors’ Bonus). These payouts will be disbursed over three years from 2023 to 2025.

Seniors who own more than one property will not be eligible for GSTV – Cash (Seniors’ Bonus). Around 850,000 lower-income senior Singaporeans will benefit from this.

Source: Ministry of Finance

HDB Households Will Receive Additional Payouts Of Up To $570 (Depending On Flat Type) Under GSTV – U-Save Rebates

Under the Assurance Package, eligible households will receive additional GSTV – U-Save rebates. This is on top of the regular GSTV – U-save rebates that fall under the GSTV Scheme. This will benefit about 950,000 Singaporean households. Households whose members who own more than one property are not eligible for GSTV – U-Save.

The additional GSTV – U-Save rebates will be credited together with the regular GSTV – U-Save over four quarters in April, July, October, and January.

Source: Ministry of Finance

Read Also: Household Support Package & GST Voucher 2022: How Much Will Your Family Be Getting (And When)

Singaporeans Children And Seniors Will Receive Medisave Top-Up Of $450

Singaporean children aged 20 years and below and seniors aged 55 years and above will receive a MediSave top-up of $150 every year across 3 years, from 2023 to 2025, amounting to $450. This will benefit around 2 million children and seniors.

Source: Ministry of Finance

Households Will Receive Community Development Council (CDC) Vouchers And Needy Households Can Seek Additional Assistance

All Singaporean households will receive CDC vouchers in 2023 and 2024, $200 worth each year, amounting to $400 in total. This is an increment of $100 per household compared to the 2021’s CDC vouchers of $100 per household. These vouchers can be used at participating heartland shops and hawker centres, as well as major supermarkets.

Read Also: Step By Step Guide To Redeeming Your CDC Vouchers

The Government will also top-up $5 million to the Citizens’ Consultative Committee (CCC) ComCare Fund over five years. Needy and economically underprivileged households with urgent needs can approach their CCCs for assistance.

Lastly, $12 million will be provided over 4 years to Self-Help Groups such as the Chinese Development Assistance Council (CDAC), Eurasian Association (EA), Yayasan MENDAKI, and the Singapore Indian Development Association (SINDA).

A Typical Singaporean Household Would Receive $3,400 From The Assurance Package In The Next 5 Years

Based on the Assurance Package, a typical household comprising of a working couple earning $8,000 and one child living in a 4-room flat would receive $3,400 in total from 2023 to 2027

	Assurance Package Cash Payout	Additional GST Voucher – U-Save	MediSave Top-Ups	CDC Vouchers	Total
2023	$300	$75	$150	$200	$725
2024	$500	$150	$150	$200	$1,000
2025	$500	$150	$150	–	$800
2026	$500	$75	–	–	$575
2027	$300	–	–	–	$300
Total					$3,400

 

Read Also: 6 Things From Singapore Budget 2022 That Will Affect You Financially

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