THE government is providing an additional top-up of S$640 million to the $6 billion Assurance Package that aims to cushion the impending increase in the Goods and Services Tax (GST), said Finance Minister Lawrence Wong on Friday (Feb 18).

The GST will go up in 2 steps, with the first increase to 8 per cent taking place from Jan 1, 2023, and then to 9 per cent from Jan 1, 2024.

The enhanced Assurance Package is expected to provide the majority of Singaporean households offsets covering at least 5 years worth of additional GST expenses, while lower-income households are expected to receive offsets covering about 10 years worth of additional GST expenses.

All adult Singaporeans will receive cash payouts of between S$700 to S$1,600 over 5 years from 2022 to 2026.

For Singaporeans who own a single property or none at all, those with annual income of less than S$34,000 will receive S$1,600 over the next 5 years; those with annual income of between S$34,000 and S$100,000 will get S$1,050; and those with annual income of above S$100,000 will get S$700. Singaporeans who own more than 1 property will receive S$700 regardless of income.

Eligible seniors will also receive a special GST Voucher - Cash (Seniors' Bonus) of between S$600 to S$900, disbursed over 3 years, from 2023 to 2025.

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The voucher is valid for less well-off Singaporean seniors that have an annual income of less than S$34,000; seniors who own more than 1 property are also not eligible for this voucher.

Eligible HDB households will receive additional GST Voucher - U-Save Rebates of between S$330 to S$570 depending on their flat types from 2023 to 2026. The rebates will be credited in January of each qualifying year.

Households whose members own more than 1 property are not eligible for this additional rebate. Eligible households will also receive their regular U-Save vouchers over 4 quarters in April, July, October and January.

Additionally, all Singaporean children aged 20 and below, and seniors aged 55 and above, will receive MediSave top-ups of S$450 over 2023 to 2025.

Furthermore, all Singaporean households will receive 2 tranches of Community Development Council vouchers worth S$200 each in 2023 and 2024, to be used at all participating heartland merchants and hawkers, as well as major supermarkets.

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