Heard the Singapore Budget 2022 buzz but not sure how it affects you? From GST vouchers to rebates, here’s how the new measures will help families in Singapore
We did the heavy lifting so you don’t have to! Announcements made at the Singapore Budget 2022 affects everyone in Singapore – the Goods and Service Tax (GST) increase in particular, which will be raised to 8% from January 2023 and then 9% in January 2024. However, the government has also announced measures and support to Singaporeans over the next few years to ease the transition.
Keep scrolling to learn more about how the measures just announced in the Singapore Budget 2022 apply to families in Singapore, including how much you’ll be getting in cash payouts (GST Vouchers)!
1. Budget 2022: Cash Payouts & Savings
All Singaporean adults will receive cash payouts of up to $1,600 between 2022 to 2026, depending on their annual income (AI) and property ownership – yes, that means more of us are eligible for the Assurance Package for GST! The first payout will be made in December 2022. From 2022 to 2026, the cash payouts according to an individual’s AI is as follows:
AI≤$34,000: $200 – $400
AI between $34,000 and $100,000: $150 – $250
AI>$100,000: $100 – $200
Find out more about your GST Voucher eligibility here!
Savings on Utilities
Eligible households will receive additional GST Voucher U-Save rebates yearly until 2026, with the amount depending on their HDB flat type. In 2023, the Additional GST Voucher U-Save under the Assurance Package will be as follows:
1- to 2-room HDB flat: $95
3-room HDB flat: $85
4-room HDB flat: $75
5-room HDB flat: $65
Executive/Multi-Generation HDB flat: $55
Hawker Centre Vouchers
All Singaporean households will receive another $100 worth of Community Development Council (CDC) Vouchers this year, and $200 worth of CDC vouchers in 2023 and 2024 separately. These CDC vouchers can be used at participating heartland shops, hawker centres and major supermarkets.
MediSave Top-ups for Children and Seniors
Singaporeans aged 20 years and below, or 55 years and above will receive a MediSave top-up of $450 over three years, from 2023 to 2025. MediSave can be used to pay off hospitalisation bills, day surgery and certain outpatient expenses.
2. Taxes Raised for High-income Earners
Personal income tax rates for top earners in Singapore will be raised to 23% for the portion of chargeable income in excess of $500,000 up to $1 million, and 24% for that in excess of $1 million.
For non-owner-occupied properties, the tax rates will rise to 11-27% in 2023, then 12-36% in 2024.
Tax rates for owner-occupied properties with annual values of more than $30,000 will also be raised. There will be a taxation range of 5-23% beyond the first $30,000 valuation by 2023, with a further increase to 6-32% in 2024.
More details here.
3. Income Support
Enhancements to Workfare Income Supplement
The Workfare Income Supplement (WIS) will now be applicable to younger workers aged 30 to 34, and the qualifying monthly income cap will be raised to $2,500. Maximum payouts under the Workfare will also be raised. Those who qualify for WIS will receive annual payouts, 40% of it in cash and 60% in CPF contributions. The new enhancements will see them receiving:
Age 30-34: $2,100
Age 35-44: $3,000
Age 45-59: $3,600
Age 60 and above: $4,200
All persons with disabilities: $4,200
Announced in past years’ Budgets
More Affordable Preschool Fees
Currently just over half of the preschools in Singapore are government-supported preschools, but by 2025 the share of government-supported preschools will climb to 80%. This will mean more preschools receiving government funding, and parents being able to place their children in a bigger pool of eligible preschools with affordable school fees. Click here for more information on subsidised school fees and fee cap information.
Local Secondary Schools, Pre-university & Institutes of Higher Education
- All students will get higher transport subsidies, and for secondary school students, more school meal subsidies.
- Pre-university students from lower-income families will get up to $1,000 under the Education Ministry’s Financial Assistance Scheme, raised from $900 previously.
- Full-time Institute of Technical Education (ITE) students from the lowest-income families will now receive a 100% fee subsidy.
$500 SkillsFuture credit top-up for Singaporeans aged 25 and older
Now would be the perfect time to learn a new skill thanks to the $500 SkillsFuture credit top-up for every Singaporean aged 25 and older. Now eligible for use and expiring by December 2025, Singaporeans are encouraged to make use of the current economic slowdown to attend available courses under the SkillsFuture scheme. From coding to cupcake-baking to learning Japanese, there are hundreds (if not thousands) of courses available; click here to browse the amazing course catalogue. P.S. Those aged 40 to 60 will also get another top-up of $500!
For more on all the new measures announced in the Singapore Budget 2022, visit www.mof.gov.sg/singaporebudget