What happened?
Deputy Prime Minister and Finance Minister Lawrence Wong has shared that Singapore’s 2024 Budget will focus on ‘Building our Shared Future Together’.
Let us take a look at some of the key announcements made today as part of his Budget 2024 speech and evaluate how they could potentially impact you.
10 ways Singapore Budget 2024 could affect you
#1 – More CDC vouchers
Who’s affected: All Singaporean households
Singaporean households will receive an additional S$600 in CDC vouchers.
The first S$300 will come in June this year, while the other S$300 will be disbursed in January 2025.
This is in addition to the S$500 in CDC vouchers Singaporeans received this year.
#2 – Assurance package: Cost-of-living special payment
Who’s affected: Eligible citizens aged 21 and above in 2024 who are living in Singapore, who do not own more than one property and with an assessable income of up to S$100,000.
To help with the cost of living, some Singaporeans will also receive a cash payment of between S$200 to S$400 in the form of a cost-of-living special payment.
#3 – Assurance package: U-save rebates
Who’s affected: HDB households
To help HDB households with the increase in their utility bills, one-off U-Save rebates of between S$550 to S$950 will be disbursed in April, July, October and January.
This will cover about four months of utility bills for those living in three- and -four room flats.
#4 – S&CC rebates
Who’s affected: HDB households
Eligible households will also receive a one-off Service and Conservancy Charges (S&CC),
rebate to offset 0.5 months of S&CC in January 2025.
Combined with the regular S&CC rebates, eligible households will receive two to four months of S&CC rebates in total.
#5– More SkillsFuture credits
Who’s affected: All Singaporeans aged 40 and above
All Singaporeans aged 40 and above will get a top-up in SkillsFuture credits of S$4,000 in May this year.
If you are younger than 40, you will only receive the top-up when you reach the age of 40.
The S$4,000 in Skillsfuture credit can only be used for selected training programmes with better employability outcomes.
This would include diplomas, post-diplomas, undergraduate programmes, as well as courses for progressive wage sector models.
#6 – Increase in CPF Enhanced Retirement Sum
Who’s affected: CPF members
The Enhanced Retirement Sum will be increased to S$426,000 in 2025 from S$308,7000 currently.
The CPF Enhanced Retirement Sum is the maximum amount that members can put into their CPF Retirement Accounts (RAs) to receive CPF payouts.
The Enhanced Retirement Sum will be increased to four times the Basic Retirement Sum from three times currently.
The increase in the CPF Enhanced Retirement Sum is intended to allow more people aged 55 and above to commit their accumulated CPF savings to receive CPF payouts if they would like to do so.
#7– Closing CPF Special Accounts
Who’s affected: CPF members
CPF Special Accounts (SA) will be closed for those aged 55 and above from next year.
The SA savings will be transferred to the Retirement Account (RA) up to the Full Retirement Sum, and earn the interest rate on the Retirement Account.
The remaining SA savings will be transferred to the Ordinary Account (OA)
However, members can voluntarily transfer their OA savings to the RA anytime, up to the Enhanced Retirement Sum.
#8 – Majulah Package for seniors and “young seniors”
Who’s affected: Singaporeans born in 1973 or earlier
At Prime Minister Lee’s National Day Rally last year, the Majulah Package was announced to help lower and middle income Singaporeans aged 50 and above meet their retirement needs.
The measures that were announced as part of the Majulah Package include:
- Earn and Save Bonus: S$400 to S$1,000 annual bonus to CPF Retirement or Special Account for Singaproeans who work and earn up to S$6,000 per month
- Retirement Savings Bonus: S$1,000 and S$1,500 one-off bonus to CPF Retirement or Special Account for Singaporeans with CPF retirement savings less than the 2023 Basic Retirement Sum ($99,400)
- One-time MediSave Bonus: Eligible seniors will get either S$750 or S$1,500.
#9 – MediSave Bonus
Who’s affected: All adult Singaporeans
All adult Singaporeans aged 21 to 50 will get a one-time MediSave Bonus of up to S$300.
#10 – Changes to property tax
Who’s affected: Owners of owner-occupied residential property
From 2025, all annual values (AVs) bands of owner-occupied residential property tax rates will be raised.
The lower threshold will be raised from S$8,000 to S$12,000.
The highest band will raised from S$100,000 to over S$140,000.
This will mean that those living in higher-value properties will have to pay their fair share of taxes.
Related Links
Learn more about how to start investing using your CPF funds to make your CPF savings work harder.
Thinking of topping up your SA account? Learn more about the pros and cons of doing so.
Alternatively, find out if it is worthwhile to transfer from your OA to SA account.
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