What is the GST Voucher scheme and Assurance Package in Singapore?
The proposed GST rise was postponed to 2023 and announced in the Singapore Budget 2022 declaration as a two-step increase. The first increase—from 7% to 8%—went into effect on January 1, 2023, and the second—from 8% to 9%—will do so on January 1, 2024.
The SGD 6 billion Assurance Package (AP) for GST was originally proposed by the government in Budget 2020 as a way to lessen the effect. The government will also provide an additional SGD 640 million to the AP as part of Budget 2022. Singaporean families would benefit from a reduction in the cost of extra GST costs.
According to Mr. Wong, who is also the Finance Minister, the boost will assist households to weather the current wave of increased inflation and soften the blow of higher GST rates.
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What do you need to know about the GST Voucher Scheme?
To help Singaporeans weather this time of rising inflation and to lessen the effect of the GST rate rises, the Government announced improvements to the Assurance Package (AP) and the permanent GST Voucher (GSTV) program in Budget 2023.
Beyond the temporary support offered by the Assurance Package, the improved permanent GSTV program will continue to help lower- to middle-income Singaporean households pay for GST costs.
The permanent GSTV system was improved in Budget 2022 by –
- The Assessable Income (AI) ceiling was increased from SGD 28,000 to SGD 34,000
- An SGD 200 increase in the GSTV-Cash quantity
- Making the GSTV program’s permanent Service and Conservancy Charges (S&CC) Refund a part of it
The GSTV – Cash quantum will increase by up to SGD350 starting this year. For less fortunate Singaporean seniors, an additional SGD600 to SGD900 will be paid out in cash under the GSTV – Cash program.
The three-year distribution of the special GSTV-Cash (Seniors’ Bonus) will take place between 2023 and 2025.
- Residents in properties with an Annual Value (AV) of SGD 13,000 or less will get an increase of SGD 200 in 2023, followed by an increase of SGD 150 in 2024.
- Residents of properties with an AV over SGD 13,000 and up to SGD 21,000 will get an extra SGD 100 in 2023, followed by another SGD 100 starting in 2024.
Benefits of GSTV – MediSave for senior citizens in Singapore
- Age 65 or older
- Whose residential address is a building whose AV is not more than SGD 21,000
- Who doesn’t own many properties
GSTV – U-Save offers benefits to qualified Singaporean HDB families with no more than one property owned by a household member. Under the AP, extra GST vouchers (GSTV) – U-Save refunds would be given to all qualified HDB homes. These extra GSTV-U-Save rebates are in addition to the GSTV scheme’s standard GSTV-U-Save rebates, and they will be applied to families’ regular GSTV-U-Save in the appropriate months.
Service Conservancy Charges & Rebate:
S&CC Refund will be given to eligible Singaporean households with HDB flats to cover 1.5 to 3.5 months of S&CC.
What do you need to know about the Assurance Package?
For all Singaporeans, the Assurance Package (AP) will lessen the effects of the GST rate hike. For more infor on this, you can always reach out to our professional GST filing Singapore services.
The AP includes cash payments for all Singaporean adults, extra cash for elders with lower incomes, additional GST vouchers – U-Save, MediSave top-ups for kids and seniors, and Community Development Council (CDC) Vouchers for Singaporean households. Moreover, the government would supplement the ComCare Fund of the Citizens’ Consultative Committee (CCC) and give grants to self-help organizations.
How much will I receive from the AP Cash Payouts and who is eligible?
- Every Singaporean who is over 21 will get a cash payment between SGD 700 and SGD 1,600 spread out over five years.
- The payments will be made between 2022 and 2026 and will be tier-based on the Assessable Income (AI) and property ownership of each eligible Singaporean.
Why are property ownership and assessable income (AI) used to establish eligibility?
- Assessable Income (AI) and property ownership provide us with a realistic and useful approach to thinking about someone’s means.
- AI covers all taxable kinds of trade, business, profession, or vocation income, employment income, and rental income.
Who qualifies for the extra GSTV – U-Save offered as part of the assurance package?
The GSTV – U-Save is only available to HDB homes. The requirements below must be met by your family to qualify for the GSTV – U-Save:
- If you own your HDB apartment and reside in it, the apartment must be owned or occupied by at least one Singaporean.
- There must be at least one Singaporean owner or occupant living in the HDB apartment you own and rent out in part.
- There must be at least one Singaporean renter when renting a whole apartment.
- Family members who share a flat cannot own or have any ownership stake in more than one property.
What extra GSTV – U-Save refunds will you receive as part of the assurance package?
The Assurance Package provides extra GSTV – USave refunds to qualified HDB families from 2023 to 2026. The additional rebates will be applied in the appropriate months along with their normal U-Save.