Budget 2023: Boost to Assurance Package, GST voucher scheme to target rising cost of living

• Enhancements to the Assurance Package will cost S$3 billion
• Amounts paid via GST vouchers, CDC vouchers to increase
• Slew of one-off support measures to help with cost of living

THE Singapore government will make several enhancements to existing support measures to help Singaporeans cope with higher inflation and cushion any impact of goods and services tax (GST) increases.

In his Budget speech on Tuesday (Feb 14), Finance Minister Lawrence Wong said the government will allocate an additional S$3 billion to the Assurance Package (AP), bringing the size of the AP to S$9.6 billion.

Some of the money will go towards increasing the cash payout due under the AP by between S$300 and S$650 for eligible Singaporeans over the remaining years of the package. This would bring the payments received by adult Singaporeans to between S$700 and S$2,250 over five years, Wong said.

The money will be distributed in the form of cash, account top-ups, rebates and Community Development Council (CDC) vouchers. The permanent GST Voucher scheme will also be enhanced, with individuals receiving as much as S$700, depending on the annual values (AV) of an individual’s home. (*see amendment note)

CDC Vouchers will be increased by S$100 in 2024, meaning Singaporean households will get another S$300 of vouchers in January.

Meanwhile, those residing in homes with an annual value (AV) of S$13,000 and below can expect to receive S$700 in GST vouchers in 2023, which is S$200 more than before. This amount will increase by $150 to S$850 from 2024 onwards.

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Individuals living in homes with an AV of above S$13,000 and up to S$21,000 will receive S$350 in 2023 and S$450 from 2024 onwards.

The GST voucher scheme applies to those with assessable incomes of up to S$34,000 and residing in homes with an annual value of up to S$21,000. The Ministry of Finance estimates it benefits about 1.5 million adult Singaporeans in August every year.

Additional one-off measures will also be introduced this year, including a Cost-of-Living Special Payment of between S$200 and S$400 for eligible adult Singaporeans. Those aged 55 and above will get an additional bonus of between S$200 and S$300.

U-Save Rebates provided to households will be doubled over the next three tranches of disbursements this year. Eligible households can expect to receive up to S$760 in rebates in 2023.

For households with children, a top-up of S$400 to the Child Development Account will be given for each child aged six and below. Each older child gets a top-up of S$300 to their Edusave account or Post-Secondary Education Account.

*Amendment note: A previous version of the article misstated the largest amount individuals could receive from the permanent GST voucher scheme as S$200 instead of S$700.