SINGAPORE — To better support households with the cost of living, some 2.5 million Singaporeans age 21 and above will receive cash payouts of between S$200 and S$400 in September 2024.

Finance Minister Lawrence Wong said on Friday (Feb 16) that these payouts will be part of a S$1.9 billion enhancement to the Assurance Package.

The package was first announced in 2020 as a S$6 billion raft of measures to cushion the impact of the Goods and Services Tax (GST) hike. It was topped up by S$640 million at Budget 2022, and S$3 billion in Budget 2023.

Beyond the Assurance Package, Mr Wong said that the GST Voucher Fund will be raised by S$6 billion to "permanently defray GST expense for lower- and middle-income households".

WHY IT MATTERS

Mr Wong, who is also the Deputy Prime Minister, noted in his Budget 2024 speech that while inflation started to moderate last year, economic growth also slowed, resulting in declining real incomes.

"While we expect the situation to improve this year, there are uncertainties in the outlook." 

The Assurance Package is designed to ensure that lower-income families and larger households — particularly those with seniors and children — get more support, he said.

HOW SINGAPOREANS WILL BENEFIT

1. Cost-of-living special payment

Singaporeans aged 21 and above this year will receive a one-off cash support of between S$200 and S$400 in September 2024.

To qualify, they must have an assessable annual income of not more than S$100,000, and not own more than one property.

Those who earn less than S$22,000 a year will receive S$400, while those who earn more than S$22,000 and up to S$34,000 will receive S$300.

Singaporeans who earn more than S$34,000 and up to S$100,000 a year will receive S$200.

About 2.5 million Singaporeans will receive the cash payment.

2. CDC vouchers

All Singaporean households will receive an extra S$600 in CDC vouchers, half of which will be disbursed in end-June, and the other half in January 2025.

The vouchers will be split equally for spending at participating merchants or hawkers, and at supermarkets.

This will benefit about 1.4 million Singaporean households.

3. U-Save rebates

Housing and Development Board (HDB) households will receive an extra U-Save rebate this year.

Singaporean households living in HDB whose members do not own more than one property will receive 2.5 times the amount of regular GST Voucher U-Save rebates in financial year 2024.

Depending on the HDB flat type, households will each receive up to S$950 in U-Save rebates from the enhancements in this Budget, the regular GST Voucher U-Save and the U-Save parked under the 2023-2026 Assurance Package.

The rebates will be given out in April, July and October this year, and in January 2025.

About 950,000 Singaporean households are expected to receive these rebates.

4. S&CC rebates

An extra one-off Service and Conservancy Charges (S&CC) rebate will be given to eligible HDB households.

Households living in one- and two-room HDB flats will receive four months of this rebate, while those living in three- and four-room flats will receive three months' worth.

Households in larger flats will receive 2.0 to 2.5 months of S&CC rebates.

Similar to the U-Save rebates, the S&CC rebate will be given out in four tranches — April, July and October this year, and in January 2025.

5. MediSave bonus

Aside from the Assurance Package and GST Voucher enhancements, Mr Wong also announced that Singaporeans aged 21 to 50 will receive a one-time MediSave bonus of up to S$300 in their Central Provident Fund account.

The amount received will be tiered based on the year of the person's birth, the number of property they own and the annual value of their residence.

Singaporeans born in 1974 to 1983 will receive a bonus of S$300 if they own less than one property and its annual value is less than S$25,000.

Those born between 1984 and 2003 will receive S$200 if they own less than one property, and the property’s annual value is less than S$25,000.

Singaporeans with more than one property or who own a property with an annual value of more than S$25,000 will receive S$100 less than their counterparts who were born in the same year.

About 1.4 million Singaporeans will benefit from the bonus, which will help them cover smaller medical bills and insurance premiums, Mr Wong said.

This bonus will cost the Government S$0.3 billion.

Singaporeans born in 1973 and before who are in their 50s and early 60s will get a one-time MediSave bonus as part of the Majulah Package.

Those with less means will be given the higher tier of $1,500 and all others will get $750.

6. LifeSG credits for servicemen

All past and present national servicemen will receive S$200 in LifeSG credits in November 2024.

National servicemen enlisting by Dec 31 this year will be eligible for the credits as well.

These credits can be used to buy goods and services at physical and online merchants offering PayNow UEN QR or Nets QR payment, or both, using the LifeSG mobile application.

This will cost the Government S$240 million and benefit 1.2 million national servicemen.

"I hope this will go some way in expressing our appreciation and gratitude to our national servicemen as well as their families for all that they have done, and continue to do for our country," Mr Wong said.

7. Tax rebates

Singaporeans will receive a personal income tax rebate of 50 per cent for the Year of Assessment 2024.

This rebate will be capped at S$200 “so that the benefits go mostly to our middle-income workers”, Mr Wong said.

The rebate will cost the Government S$350 million.

Those with dependants will also find dependant-related relief schemes easier to attain, he added.

From the Year of Assessment 2025, the annual dependant income threshold will be increased from S$4,000 to S$8,000.

This means that under the new threshold, a parent or caregiver can claim dependant-related tax relief as long as their dependents earn an annual income of S$8,000 or less.