Unlocking the Secrets of Budget 2024: CDC Vouchers and Income Tax Rebates Revealed! | One Nation (2024)

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• February 16, 2024
• 10:14 pm

Amidst a challenging global environment and a slow global economy, Deputy Prime Minister and Finance Minister Lawrence Wong announced on Friday (Feb 16) that Budget 2024 aims to address Singaporeans’ concerns about the cost of living.

In his two-hour speech, Wong acknowledged that the past year had been difficult, with Singapore’s economy growing by a modest 1.1 per cent and avoiding a recession.

He stated that he understands that many households are feeling the pressure of higher living costs. Therefore, Budget 2024 focuses on taking concrete steps to build their shared future together, with the government able to enhance its assistance measures due to the unexpected revenue from Singapore’s strong rebound after Covid-19.

Here are some of the key announcements from Budget 2024:

The government will be helping households with the cost of living. Eligible Singaporeans aged 21 and above in 2024, who do not own more than one property and have an assessable income of up to $100,000, will receive a “cost-of-living special payment” ranging from $200 to $400.

This is part of the $1.9 billion enhancement to the Assurance Package, which was introduced in 2020 to cushion the GST increase. Additional $600 in Community Development Council (CDC) Vouchers Scheme will be distributed to households in two equal tranches of $300, with the first tranche in end-June this year and the second in January 2025. To assist Housing Board households with increased utility bills, one-off U-Save rebates of up to $950 will be disbursed in April, July, October, and January. Eligible HDB households will also receive a one-off rebate for Service and Conservancy Charges (S&CC), offsetting 0.5 months of S&CC in January 2025. To help Singaporeans manage medical bills and insurance premiums, all adult Singaporeans aged 21 to 50 will receive a one-time MediSave Bonus of up to $300.

Support for families: Lower-income families will receive support through ComLink+ Progress Packages, with eligible adults receiving quarterly payouts of up to $600 through a combination of cash and CPF if they secure and maintain employment. Young families waiting for their Build-to-Order (BTO) flat to be completed will receive a Parenthood Provisional Housing Scheme (Open Market) Voucher for one year, allowing them to rent a flat. Monthly childcare fee caps in Government-supported pre-schools will be lowered to $640 for anchor operators and $680 for partner operators in 2025, making full-day pre-school expenses for dual-income families comparable to the combined costs of primary school fees and after-school student care.

Pre-school subsidies will also be extended to all children from lower-income families. Additionally, the government plans to extend the Central Provident Fund (CPF) system to older Singaporeans by closing the Special Account for individuals aged 55 and above starting from 2025.

CPF members will have three CPF accounts at any one time, with the Retirement Account (RA) being the sole account holding their savings intended for retirement payouts.

The other two accounts are the Ordinary Account (OA) and MediSave Account (MA). The CPF contribution rates for senior workers aged 55 to 65 will be raised by a further 1.5 percentage points in 2025. The Enhanced Retirement Sum will be raised from 2025 to four times the Basic Retirement Sum.

The Majulah Package for ‘young seniors’ will provide a boost for retirement to all Singaporeans born in 1973 or earlier.

Seniors earning up to $6,000 per month will receive an Earn and Save Bonus to accumulate more retirement savings.

Seniors with retirement savings below the Basic Retirement Sum will also receive a one-time retirement savings bonus of between $1,000 and $1,500.

Additionally, individuals born in 1973 or earlier will receive a one-time MediSave bonus of $750, with those who have lower means receiving $1,500.

The Majulah Package will benefit approximately 1.6 million Singaporeans, with a total lifetime cost of $8.2 billion. Support for workers includes a top-up of $4,000 in their existing SkillsFuture credit in May for Singaporeans aged 40 and above.

The additional amount can only be used for selected training programs with better employability outcomes. Singaporeans aged 40 and above who enroll in full-time education courses will receive a monthly allowance equivalent to 50 per cent of their average income over the latest 12-month period, capped at $3,000 per month.

Each individual can receive up to 24 months of training allowance throughout their lifetime. Retrenched workers will receive temporary financial support while undergoing training or searching for better-fit jobs.

More details will be announced later this year. Measures will be implemented to ensure income equality and mobility, including increasing workfare payouts for lower-wage senior workers and adjusting wages for lower-wage workers.

ITE graduates enrolling in a diploma program will receive a $5,000 top-up to their post-secondary education accounts to improve their career and wage trajectory. Changes to personal income tax include a personal income tax rebate of 50 per cent, capped at $200, for the Assessment Year 2024. Additionally, the annual income threshold for dependant-related tax reliefs will be raised from $4,000 to $8,000, effective from Assessment Year 2025.

This will cost the government $350 million.

All national servicemen will receive cash credits:
– All national servicemen, past and present, will receive $200 in cash credits as a recognition of their contribution to Singapore’s defense.

The credits can be spent at over 100,000 online or physical stores that accept payments via PayNow UEN QR or NETS QR.

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