From housing grants to working moms’ relief, here’s what you need to know about Budget 2023.
When our annual Budget statement was made on Valentine’s Day this year, hearts weren’t broken as they were… well, deflated. The culprit? Inflation, which looks set to continue for the first half of 2023, along with another GST hike in 2024.
It’s all overwhelming information. Even our DPM Lawrence Wong admitted the same when he introduced the Support for You Calculator, which will help determine what benefits you can expect in the coming year based on your personal details.
In true RICE Digest spirit, we’ve picked out the most important bits for you to understand. And we’ve ranked them, because, why not? We’re all about to spend less this year. It’s better to find our fun where it’s free.
#3: Housing Prices Aren’t Cooling Down Anytime Soon
Our writer summed it up best in a feature worth your time, if you haven’t read it yet—single Singaporeans will still have a hard time getting a place of their own. Shocker. We know.
But in an age of ballooning rental prices and competitive BTO ballots, getting a flat here might be a big ask even for families. That’s why DPM Wong introduced new measures in his Budget 2023 speech to help new families looking for their own homes.
The BTO balloting process will now include an extra chance for families with children and young married couples, aged 40 and below. As long as they’re first-time buyers.
As for the CPF Housing Grant, it’s now looking kinder towards resale flats that are 4-room or smaller—it’s been increased from $50,000 to $80,000 for first-time families (those who have never received housing subsidies before) and $40,000 (previously $25,000) for singles.
Other grants, like the Proximity Housing Grant, will allow up to $190,000 in grants for families and $95,000 for singles. It’s a lot of money, but houses cost a heck of a lot more these days.
You can check out the full breakdown by HDB here.
#2: Working Mums Get Relief, Literally and Figuratively
Speaking of new families, there’s definitely some trepidation for mothers who want to balance their careers with raising a child. One of the biggest reveals during DPM Wong’s Budget statement was the changes to the Working Mother Child Relief.
Currently, working mums can claim tax relief based on a percentage of their income—a percentage that increases with the number of children. But come 2024, this will be replaced with a fixed amount: $8,000 for the first child (born or adopted on or after January 1, 2024), $10,000 for the second child, and $12,000 for the third and subsequent children.
No doubt, doing away with the percentage scheme will mean that lower-income mothers benefit more from the relief. And helping lower-income families is, arguably, what government schemes should aim to do.
Will this initiative, along with other benefits for new parents, be enough to help the working mums of Singapore? That’s another whole thing to unpack, which we did with The Financial Coconut.
#1: Assurance Packages to Assure You Not to Pack It In
Back in 2020, we had COVID. Remember that? The Assurance Package swooped in to help with the cost of living that seemed frightening in the wake of the pandemic’s first big boom, where our physical and social mobility was halted. Businesses either shuttered or scrimped for money as they found themselves unable to open for months.
Now, in 2023, we’re maskless and mostly free to roam, but economic challenges still lie ahead. At least, that’s what DPM Wong told us during his Budget 2023 speech before unveiling an enhanced version of the Assurance Package.
The good news? More money is being spent, so more money will be dispersed to help us with rising costs.
The package has been injected with an additional $3 billion, bringing it to a staggering $9.6 billion in total. There’s also the GST voucher, to be handed out as well.
Depending on your income and number of properties you own (don’t worry if you’re between 21 to 30, that doesn’t affect you), you can receive anywhere from $700 to $2,250, spread out over five years (2022 to 2026).
This year, the Assurance Package will be available in December—individuals with an income below the median ($34,000) will receive $600, a $200 increase from the amount announced before the Budget 2023 statement.
As for the GST voucher, your household will receive either $700 or $350 based on your property’s annual value.
There’s also the special Cost-of-Living payment, to be given to adults based on their income. If you earn between $34,000 to $100,000, you’ll get $200, and that increases if your yearly income is lower, up to $400. Here’s the full breakdown, and another breakdown for those spending more time on TikTok.
