Enhanced Assurance Package and additional relief measures aim to support Singaporeans amidst economic uncertainties.
SINGAPORE: Deputy Prime Minister and Finance Minister Lawrence Wong announced expanded support measures in Budget 2024 on Friday (Feb 16) to address cost-of-living challenges and economic uncertainties. The enhancements include additional payouts, increased tax reliefs, and significant funding for the Goods and Services Tax (GST) voucher scheme.
Although inflation began to ease in 2023, Singapore’s economy experienced slowed growth and declining real incomes, with GDP growth recorded at 1.1 per cent. While economic recovery is expected in 2024, the government is bolstering support to assist households during this period of uncertainty.
Key Announcements in Budget 2024
Enhanced Assurance Package
The Assurance Package, initially introduced in Budget 2020 to mitigate the impact of higher GST rates, will be boosted by an additional S$1.9 billion. Key benefits include:
Community Development Council (CDC) Vouchers: All Singaporean households will receive S$600 in CDC vouchers, distributed in two tranches—S$300 at the end of June 2024 and S$300 in January 2025.
Cost-of-Living Special Payment: Adult Singaporeans earning up to S$100,000 annually and owning no more than one property will receive a payout ranging from S$200 to S$400.
U-Save Rebates: Eligible Housing and Development Board (HDB) households will benefit from total rebates of up to S$950, helping to offset utilities expenses.
Service & Conservancy Charges (S&CC) Rebate: An additional half-month rebate will be provided in January 2025, bringing the total to up to four months of rebates for eligible HDB households during the financial year 2024.
MediSave Bonus
In December 2024, Singaporeans aged 21 to 50 will receive a one-time MediSave bonus of S$100 to S$300, depending on their birth year, property ownership, and residence value. Older Singaporeans born in 1973 or earlier will receive up to S$1,500 under the Majulah Package.
LifeSG Credits for NSmen
All past and present National Servicemen (NSmen), including enlistees by Dec 31, 2024, will be given S$200 in digital credits via the LifeSG app. Valid for one year, these credits can be redeemed at over 100,000 merchants. This initiative will cost the government S$240 million and benefit 1.2 million servicemen.
“It is a small gesture, but it reflects our gratitude and appreciation for the contributions of our national servicemen and their families,” said Mr Wong.
Personal Income Tax Rebate
A 50 per cent personal income tax rebate, capped at S$200, will be offered in the year of assessment 2024 to support middle-income workers.
Increased Income Threshold for Tax Reliefs
From the year of assessment 2025, the annual income threshold for dependant-related tax reliefs will be raised from S$4,000 to S$8,000, enabling more taxpayers to claim reliefs for dependants and caregivers.
These Budget 2024 measures reflect the government’s commitment to providing targeted support for Singaporeans, particularly middle- and lower-income households, while addressing broader economic challenges.
