S$1.9 Billion Household Support, Property Tax Changes, and More
Finance Minister Lawrence Wong presented Singapore’s Budget 2024, addressing immediate cost-of-living concerns, bolstering economic competitiveness, and providing significant support for households, businesses, and workers. Key initiatives announced include:
S$1.9 Billion in Household Support: An enhancement to the GST Assurance Package, offering S$600 in CDC vouchers to all households, means-tested cash payments ranging from S$200 to S$400, and additional rebates for utilities and service charges.
S$1.3 Billion Enterprise Support Package: To help businesses manage rising costs, this includes a 50% corporate income tax rebate, an enhanced Enterprise Financing Scheme, and an extended SkillsFuture Enterprise Credit.
Refundable Investment Credit: To attract high-value investments, Singapore will introduce a new credit aimed at companies engaging in significant economic activities like manufacturing or R&D.
New SkillsFuture Programme for Mid-Career Workers: Workers aged 40 and above will receive S$4,000 in SkillsFuture Credit, subsidies for a second diploma, and a monthly training allowance to support retraining efforts.
Raising Local Qualifying Salary: From July 1, 2024, the minimum salary for local workers will rise to S$1,600, impacting companies hiring foreign workers.
Housing Support for Young Families: A new voucher scheme will offer financial assistance for young couples waiting for Build-To-Order flats, allowing them to rent a public flat for one year.
CPF Adjustments: Contribution rates for those aged 55-65 will rise by 1.5 percentage points, and the Enhanced Retirement Sum will be increased to four times the Basic Retirement Sum.
Personal Income Tax Rebate: A 50% personal income tax rebate, capped at S$200, will be provided for YA 2024, alongside higher income thresholds for dependant reliefs.
Property Tax Changes: Adjustments to property tax bands, with the lower threshold for exemption rising to S$12,000 and the highest band surpassing S$140,000, will provide relief for homeowners.
This comprehensive package aims to support the population through immediate financial relief while strengthening the country’s long-term competitiveness.
