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 was delayed to 2023 and the increase will be split into two steps. The first increase has taken effect on 1 January 2023, from 7% to 8%, and the second increase will take place 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.

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.

During Budget 2023, DPM announced the enhancement of $3 billion (including the one-off and earlier enhancement) to the Assurance Package bringing it to a total of $9.6 billion.

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

Read Also: Singapore Budget 2023: 11 Things That Will Affect Singaporeans Financially

Around 2.9 Million Adult Singaporeans Will Receive Cash Payouts Of Up To $2,250

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.

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).

For Budget 2023, this will be enhanced with additional AP Cash of between $300 to $650 over the remaining years of the AP. This will be issued in December and bring the total AP Cash payments to between $700 and $2,250 over five years. This is expected to benefit 2.9 million Singaporeans.

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

Under Budget 2022, 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.

With Budget 2023, an additional $100 CDC Vouchers will be issued. This is expected to benefit up to 1.3 million Singaporean households.

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

Adult Singaporeans Will Receive $200 To $400 In 2023 Cost-Of-Living (COL) Special Payment 

As an enhancement to the AP in Budget 2023, eligible Singaporeans aged 21 and above in 2023 with Assessable Income of not more than $100,000 and do not own more than one property, will receive a one-off cash payment between $200 and $400 under the 2023 COL Special Payment in June 2023. This is expected to benefit 2.5 million Singaporeans.

Senior Singaporeans Will Receive $200 To $300 In 2023 Cost-Of-Living (COL) Seniors’ Bonus

Another enhancement to the AP in Budget 2023, eligible senior Singapore citizens aged 55 and above in 2023 with Assessable Income of not more than $34,000 and do not own more than one property and whose property’s annual value does not exceed $21,000, will receive a cash payment of $200 to $300 under the 2023 COL Seniors’ Bonus, in June 2023.

This one-off COL Seniors’ Bonus is in addition to the previously announced AP’s Seniors’ Bonus. This is expected to benefit about 850,000 senior Singapore citizens.

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

Announced in Budget 2022, 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 announced in Budget 2022, 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

Additionally, as part of the AP enhancements for Budget 2023, eligible HDB households will receive double the amount of regular GSTV-U-Save in April 2023, July 2023 and October 2023 with the COL U-Save Special Payment.

The COL U-Save Special Payment is expected to benefit 950,000 Singaporean households

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

Under Budget 2022, 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

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

 

Singapore Children Will Receive 2023 Top-Ups To Their CDA/ Edusave/ PSEA

Additionally, under the AP enhancements of Budget 2023, Singaporean children will receive additional support.

Singaporean children aged below the age of 7 will receive a one-off $400 top-up to their Child Development Account (CDA) from September 2023. Singaporean children aged between 7 and 16 years and 17 and 20 years will receive a one-off $300 top-up to their Edusave account and Post-Secondary Education Account (PSEA) respectively in May 2023.  This is expected to benefit about 770,000 children.

This article was originally published on February 2022 and updated with the latest Budget 2023 changes. Additional reporting by Angela Koo. 

The post Assurance Package For GST: How Much Will Singaporean Households Be Getting Over The Next 5 Years? appeared first on DollarsAndSense.sg.