In his Valentine’s Day speech on the 2023 Budget, Deputy Prime Minister and Finance Minister Lawrence Wong discussed many issues that concern Singaporeans today.
He addresses many pressing issues, most notably the difficulties many face with persistently high levels of global inflation and skyrocketing prices for HDB flats.
Here’s a quick recap of the seven announcements that are most likely to affect you as an individual.
Living expenses, CDC and GST vouchers
To mitigate the effects of the current high inflation rate, the Singapore government will make a ‘cost of living’ payment this year to eligible Singaporeans aged 21 or over with an annual taxable income of less than S$100,000 and less than S$100,000. is. Own multiple properties.
Cost of living payments are tiered, ranging from S$200 to S$400, based on a person’s taxable income in 2022. This payment will go to approximately 2.5 million Singaporeans in June 2023.
Also, in January 2024, all Singaporean households will receive a S$300 Community Development Council (CDC) voucher, up from the previously declared S$200.
Finally, adult Singaporeans aged 21 and over with an annual taxable income of S$34,000 or less will also be eligible for an increased amount of GST vouchers this year under the guaranteed package.
Residents of homes with an annual value of S$13,000 or less will receive S$700 in 2023, up from the previously declared S$500, and a further S$850 in 2024.
People living in houses with an annual value over S$13,000 to S$21,000 will receive S$350 in 2023, up from the previously declared S$250, and a further S$450 in 2024.
An additional S$200-S$300 cash payment will be made for seniors aged 55 or over in 2023, with low assets and an annual income of up to S$22,000.
of warranty package It was first announced in the 2020 Budget with the aim of easing rising costs of living due to sustained inflation and an increase in the GST. About 2.9 million Singaporeans will receive S$2,250 out of a total of S$700 over his five years in the package.
|Annual income less than S$13,000||Annual Income S$13,001 – S$21,000||Annual Income S$21,001 – S$22,000||Annual Income S$22,001～S$34,000||Annual Income S$34,001 – S$100,000||Annual income of S$100,000 or more|
|living expenses payment
|400 Singapore dollars||400 Singapore dollars||400 Singapore dollars||300 Singapore dollars||200 Singapore dollars||–|
|$700||350 Singapore dollars||–||–||–||–|
|850 Singapore dollars||450 Singapore dollars||–||–||–||–|
|senior citizen voucher||55-64 years old||$250||200 Singapore dollars||–||–||–||–|
|65 years of age or older||300 Singapore dollars||200 Singapore dollars||–||–||–||–|
|S$300 per household|
Related: 2023 CDC and GST vouchers: everything you need to know and how much you’ll receive
Increased CPF Contribution Monthly Limit
Contributions to the CPF are subject to a monthly CPF salary cap. Both employees and employers now contribute a portion of their monthly salary to the CPF, capped at the first S$6,000 of their monthly earnings.
As announced in Budget 2023, the CPF monthly salary ceiling will be gradually increased from S$6,000 to S$8,000 by 2026. There is no change to the CPF salary cap.
From September 2023, the CPF monthly salary cap will increase by S$300 to S$6,300. It will then increase by another $500 to S$6,800 in January 2024, $600 to S$7,400 in January 2025, and $600 to S$8,000 in January 2026. The measure was introduced in line with a general increase in wages for Singaporeans.
This monthly CPF salary cap increase is meant to align CPF savings with wage inflation. With higher limits, the CPF system will continue to cover workers up to the 80th percentile of their monthly income distribution.
Related: What can I invest in under the CPF investment scheme?
Housing subsidies for first-time buyers
The government has increased the amount of enhanced CPF housing subsidies for first-time buyers of resale apartments to a maximum of S$30,000.
First-time homebuyers have never received a housing subsidy before. To be eligible for these grants, household income must be below S$14,000 and he cannot own private property.
Under new measures, First-time buyers of resale flats with 4 rooms or less can receive an enhanced CPF subsidy of up to S$80,000. and First-time buyers of resale flats with 5 or more rooms can receive an enhanced CPF subsidy of up to $50,000This is up from $50,000 and $40,000 respectively.
Additionally, the Singapore government is ramping up its efforts to help first-time homebuyers with children and young couples under 40 secure BTO flats. A new measure has been introduced to obtain additional votes for BTO flat applications to increase the likelihood of the aforementioned groups getting flats.
Also Read: Average Housing Cost in Singapore 2023
Increased marginal buyer stamp duty on higher value properties
The portion of residential property valued over S$1.5 million is currently subject to a 4% tax rate. Under the new measures effective from 15 February 2023, this marginal stamp duty has been increased by 1% to 2%.
The portion of residential property value exceeding S$1.5 million to S$3 million is taxed at 5% and the portion of property value exceeding S$3 million is taxed at 6%.
Similarly, for non-residential property, the portion of the property value exceeding S$1 million to S$1.5 million is taxed at 4%. The portion of non-residential property valued over S$1.5 million is subject to a 5% tax. This is up from the current 3%.
Related: Mortgage Calculator: Find the Best Mortgage Rates for February 2023
Increased baby bonus and support for new parents
The Baby Bonus Cash Gift is increased by S$3,000 for eligible Singaporean children as of 14th February 2023.
Previously, parents received Baby Bonus Cash Gifts totaling S$8,000 for each birth of their first and second child, and S$10,000 for the third and subsequent children. After the new adjustment, the parent will receive her S$11,00 for the first and second child respectively, and her S$13,000 for the third and subsequent children.
The payment schedule has also changed. Previously, it was paid in cash in five installments for her first 18 months after the child was born. After the new adjustment, the parent will receive cash every six months until the child is six and a half years old.
In addition, the Child Development Account (CDA) First Step Grant will also be increased by $2,000, from S$3,000 to S$5,000. On top of that, the government will raise her S$1,000 cap for joint first and second child matching.
In exciting news for future fathers, the government-paid paternity leave for fathers of Singaporean children born after 1 January 2024 will be doubled from two weeks to four weeks.
In addition, each parent is entitled to 12 days of unpaid parental leave per year during the child’s first two years. This is double her six days which was her previous right.
Related: Best Cheap Maternity Insurance in Singapore 2023
Increased Marginal Additional Registration Fee (ARF) for Luxury Vehicles
The ARF rate for luxury cars has been increased. For vehicles with an open market value (OMV) of S$40,000 or more, the ARF rate will be increased from 220% to 320%.
The preferential ARF rebate will also be capped at S$60,000 to avoid excessive rebates if these luxury cars are de-registered at the end of production.
Also Read: Average cost of a car loan in 2023
Tobacco tax increase
As of February 14, 2023, excise duty on all tobacco products has increased by 15%. The tobacco tax hike is expected to generate about S$100 million in additional revenue annually.
Cover image: Unsplash
This article originally appeared on ValueChampion.
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