Budget 2024: More CDC vouchers, payouts and tax rebates to help with cost of living
A lady browsing clothes at a clothing shop in Toa Payoh Central, Feb 8, 2024. (File photo: CNA/Jeremy Long)
SINGAPORE: Singaporeans will get more payouts to help with cost-of-living concerns, Deputy Prime Minister Lawrence Wong announced in his Budget 2024 speech on Friday (Feb 16).
The government will also top up the fund for Goods and Services Tax (GST) vouchers by S$6 billion (US$4.5 billion), to continue defraying GST expenses for lower- and middle-income households.
Although inflation started to moderate in 2023, economic growth slowed and real incomes declined as a result, noted Mr Wong, who is also Finance Minister. Singapore's economy grew 1.1 per cent last year.
While the government expects the situation to improve in 2024, it's doing more to support households as uncertainties remain in the economic outlook, he added.
Here are the payouts to look out for in the year ahead.
ASSURANCE PACKAGE
First announced at Budget 2020 to help offset higher GST expenses, the Assurance Package will now be enhanced by a further S$1.9 billion to provide the following:
- S$600 in Community Development Council (CDC) vouchers, with half of it to be given out at the end of June and the other half in January 2025. This is for all Singaporean households.
- Between S$200 and S$400 in a cost-of-living "special payment". This is for adult Singaporeans who live in Singapore, do not own more than one property and have assessable incomes of up to S$100,000.
- Additional U-Save benefits to bring total U-Save rebates to up to S$950, or two-and-a-half times the usual amount. This is for eligible Housing and Development Board (HDB) households, to help offset utilities expenses.
- Additional half-month of service and conservancy charges (S&CC) rebate in January 2025, for a total of up to four months of S&CC rebate in the financial year 2024. This is for eligible HDB households.
MEDISAVE BONUS
In December, a one-time MediSave bonus of between S$100 and S$300 will be given to all adult Singaporeans between the ages of 21 and 50.
The amount they receive will depend on their year of birth (from 1974 to 2003), annual value of their residence and whether they own more than one property.
Older Singaporeans born in 1973 or earlier will get their MediSave bonus - of up to S$1,500 - under the Majulah Package.
LIFESG CREDITS FOR NSMEN
All past and present NSmen, including those enlisting by Dec 31, 2024, will receive S$200 in digital credits that can be redeemed on the LifeSG mobile app.
The credits can be spent at over 100,000 merchants. They will be given out in November and are valid for one year.
"It is a small gesture, but when you add it all up, it will cost us S$240 million and benefit 1.2 million national servicemen," said Mr Wong.
"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 will continue to do for our country."
TAX REBATE
A personal income tax rebate of 50 per cent will apply in the year of assessment 2024. This will be capped at S$200 to mainly benefit middle-income workers, said Mr Wong.
TAX RELIEF
From the year of assessment 2025, the government will double the income threshold for dependant-related tax reliefs.
Currently, the annual income of a dependant or caregiver cannot exceed S$4,000 in the preceding year if a tax-resident individual wishes to claim spouse relief, parent relief, qualifying child relief, working mother's child relief, relief for topping up the Central Provident Fund (CPF) account of a spouse or siblings, or grandparent caregiver relief.
This income threshold will be raised to S$8,000, allowing more taxpayers to benefit.
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