The Budget 2023 statement has officially been announced this week. From enhanced assurance packages to help with the rising costs to support given to families, here's everything you need to know about Budget 2023!
Support For Inflation and Higher GST
1. Enhanced Assurance Package
The Assurance Package was put forth to lessen the effects of the GST hike. Between 2022 and 2026, cash payments will be made to all Singaporeans over 21 every December. They will receive a total of between S$700 to S$2,250 during this time, depending on their income and ownership of property.
2. One-Off Support Measures
In June, eligible Singaporeans who are 21 or older would get a payment of $200 to $400. Additionally, eligible seniors 55 years and older will receive an extra one-off cash payout of between $200 and $300. For eligible Singaporeans aged 20 and under or 55 and over, you can expect your Central Provident Fund (CPF) MediSave accounts to be topped up with S$450 every February from 2023 to 2025.
3. Vouchers for Households
Households can expect to receive additional Community Development Council (CDC) Vouchers worth S$300 in January 2024. For those who qualify for the GST Voucher-U-Save rebates for utility bills, you will get twice the usual amount this year.
Support For Families
4. Enhanced Baby Bonus Cash Gift
All Singaporean children born on February 14, 2023, onwards, would receive a Baby Bonus cash gift worth S$3,000 more to help young couples who are looking to build or grow their families.
The payouts will increase further - parents will get up to S$9,000 in reimbursements over the first 1.5 years of their kid's life, and S$400 every six months from when the child turns two until they are 6.5 years old.
P.S. Hopefully, this will make it easier for families to save up for experiences like a family-friendly staycay in Singapore!
5. More Money in Child Development Account
From September, your kids six years old and younger can expect a one-time S$400 top-up to their Child Development Account, which is a co-savings program meant to help children with their preschool and medical costs.
The Government will provide additional assistance by increasing the initial deposit into the account from S$3,000 to S$5,000 and by boosting the limit by matching the parents' savings for their first and second children.
6. More Paternity Leave
For parents who have children born after January 1, 2024, the amount of government-paid paternity leave will double from two to four weeks. This means that you can spend more quality time with your family!
P.S. Looking for fun kid-friendly things to do? Check out these14 Kid-Friendly Animal Farms In Singapore Where You Can Catch Fish, Feed Goats And Ride Horses!
7. Tax Relief For Working Mums
From 2024 onward, women who give birth to or adopt children will be eligible for a fixed dollar relief scheme in place of the current system's percentage of the mother's earned income.
Due to modifications to the Working Mother's Child Relief, qualified working mothers will now receive an annual relief payment of S$8,000 for their first child, S$10,000 for their second child, and S$12,000 for their third and subsequent children.
P.S. Want to know the challenges of a working mum? Check out howthis mum navigates work and family during Ramadan!
8. Higher Chance Of Getting Build-To-Order Flats
Families with children and young married couples under the age of 40 will now be included in a new subcategory of first-time applicants for public housing. More information will be released during the Budget in Parliament debate.
9. Enhanced Grants for Resale Flats
The CPF Housing Grant will be enhanced, with individuals purchasing smaller flats receiving a higher amount, to assist first-time families in purchasing a resale flat. Families who qualify may get grants of up to S$190,000 when purchasing a resale apartment on or after April 1 this year, in addition to the Proximity Housing Grant. The size of the resale flat will also determine how much support is provided to eligible singles.
Support for Workers
10. CPF For Platform Workers
Platform workers below 30 who work for companies that offer ride-hailing or food-delivery services must make mandatory CPF payments with their employers. Those making less than S$2,500 per month will receive transitional support for the first four years. More information will be released during the following Committee of Supply Debate for the Ministry of Manpower.
11. Changes to CPF for Older Workers
The CPF savings of older employees will be adjusted, and the next increase in CPF contribution rates will occur in 2024. Employers are likely to receive assistance in some form to lessen the rise in business expenses.
The minimum CPF payout for seniors on the Retirement Sum Scheme would rise to S$350 per month. In addition to senior workers, Singaporeans in the middle-income bracket would see their CPF monthly wage maximum increase gradually from S$6,000 to S$8,000 in 2026.
12. Job-Skill Integrators
"Jobs-Skills Integrators" will act as intermediaries linking industry players with training institutions to better complement the training skills that workers receive to the skills needed by employers.
These "middlemen" will initially start to train personnel for precision engineering, retail, and wholesale trade industries. More information will be made available during the Ministry of Education's budget debate.
13. More Support For Vulnerable Workers
New measures and enhancements will be introduced to existing efforts for senior workers, ex-offenders, lower-wage workers, and workers with disabilities. For instance, to incentivize businesses to hire ex-offenders, the Progressive Wage Model will be extended to new industries, and a time-limited wage offset will be implemented.
Tax Changes
14. Adjusted Additional Registration Fee For Cars
This fee will be changed to more clearly distinguish higher-end vehicles, with luxury vehicles subjected to a greater tax. In order to prevent giving out excessive reimbursements to more expensive cars when they are de-registered, the Preferential ARF rebate will be capped at $60,000.
P.S. If you’re planning to head to Malaysia, check out thesecar rentals in Singapore orthis luxury bus to Kuala Lumpur!
While there is still more information to gather, these are the main highlights of Budget 2023 that you should be aware of!