Every Singaporean will get higher cash payouts under the Assurance Package and Goods and Services Tax (GST), according to Budget 2023. This will help lower- and middle-income Singaporeans cope with the higher inflation of goods and services and cushion the impact of the GST hike.
Under this scheme, Singaporeans aged 21 years and above having an Annual assessable income of $34,000 would benefit from GST vouchers payouts, Singapore’s Minister for Finance, Mr. Wong, stated.
Additionally, the voucher payouts will increase from S$500 to S$700 in 2023 to S$850 in 2024. To discover more about GST voucher payouts in Singapore, continue reading.
What Is GST Payout?
The first GST Voucher scheme came into place during the 2012 budget. Its main mandate was to assist the middle-and lower-income Singaporeans in coping with higher GST rates. Additionally, it was to help with the high cost of living. During budget 2023, this scheme was introduced yet again.
The Ministry of Finance (MOF) highlighted that around 1.5 million Singaporeans are eligible for higher cash payouts as part of the annual GST scheme. The adjustments will cost the government an increase of $530 million every year. The government will spend $1.7 billion annually on the GSTV scheme as of 2024.
Provided you are eligible for this scheme, you can freely get four different GSTV components during the year. They include:
- GSTV- S&CC-Services and conservancy charges
How Much Is GST Cash Payout 2023?
First, the annual cap will be from $28000 to $34000. It implies that Singaporeans aged 21 years and above having an annual Assessable Income of $34,000 will benefit from GST voucher payouts in 2023.
Additionally, over 1.5 million adult Singaporeans are expected to get the enhanced GSTV cash payout as of August 2023. The GST cash payout will rise to $350 majorly in two steps:
- In 2023, every Singaporean GSTV cash recipient will get around $200, exceeding the previous year’s rates.
- As of 2024, every GSTV recipient is expected to get up to $150, exceeding 2023 rates starting from 2024 and onwards.
This implies that Singaporeans aged above 21 years are eligible to get either $350 or $700 in GSTV cash payouts starting from 1 August 2023.
What Are the Benefits?
As mentioned, if you are eligible for GSTV cash payouts, you may receive four different GSTV components during the year. Each of the vouchers comes with its benefits, and they include the following:
- GST Voucher-cash
- GSTV-Services and conservancy charges (S&CC) Rebate
Let’s see what each of them entails:
The main benefit of GST Voucher-Cash is supporting the immediate needs of eligible lower-income Singaporeans. This cash payout is released every August, and the recipients can get it through Pay Now-NRIC. Additionally, the GSTV-cash quantum has been increased this year by upto$350.
Those Singaporeans living in households with an Annual Value (AV) of $13000 and below are entitled to receive $200 more this year (2023); Afterward, they will get an additional $150 from 2024 onwards.
On the other hand, those living in households with an AV of above $13000 to $210000 will get $100 extra in 2023 and an increase of $100 starting from 2024 onwards.
For you to get the GST Voucher cash in 2023, you have to meet the following criteria:
- Be a Singapore citizen residing in Singapore
- Age 21 years and above as per 2023
- Must be earning an amount not exceeding $34000 (assessable income by IRAS)
- Must have the Annual Value (AV) specifically of your home as highlighted on your NRIC dated 31 December 2021/2022 and not more than $21000
- Finally, you should not possess more than one property
The GSTV-U-save will assist about 950,000 Singaporean households residing in Housing and Development flats. To be eligible, check the following criteria:
- Must be a Singapore citizen residing in Singapore
- Every household must choose at least one person as the occupier, owner, or tenant of the HDB flats
- No household member is required to own more than one property
You can also use the U-save credits to settle your utility bills. You also need to remember that if your actual monthly bill is lower than the U-save rebate, the remaining balance is forwarded to the next monthly bill.
The good thing with GSTV-U-save is that you do not have to register or do anything. You will automatically get a U-Save rebate specifically on your utility bills the moment you qualify.
3. GST Voucher Medisave
With GST-Medisave, all elderly Singaporeans get a chance to benefit from it. Additionally, every eligible Singaporean will get their payout in August 2023. The GSTV-Medisave will help 575,000 seniors or elderly Singaporeans every August. To qualify for GSTV-Medisave, you have to meet the following criteria:
- Must be a Singapore citizen residing in the country
- Age 65 years and above
- Your residential address or home has a property not more than an Annual value (AV) of $21000
- You should not have more than one property
4. GSTV-Services and Conservancy Charges (S&CC) Rebate
Budget 2023 states that S$CC rebates will be a permanent fixture of the GSTV scheme beginning with FY2022. This trench will ensure 950,000 Singaporeans who are eligible and reside in housing and development flats yearly benefit from it.
The eligible households will get 1.5 to 3.5 months of the S&CC rebates throughout FY2023. To qualify for GSTV S&CC, you must meet the following criteria.
- Must be a Singapore citizen residing in the country
- Eligible households must contain at least one Singaporean as the occupier, owner, or tenant of the HDB flat
- Households must not own any private property or rent the entire flat. Also, no member of any family should not own personal property
Another point to note is that the Singapore government announced in budget 2020 – a transitory $6 billion Assurance Package (AP), which will help Singaporeans cope with the high GST rates. It then increased to $6.6 billion in 2022. This year, the Minister for Finance announced at budget 2023 that the government would increase $3 billion on top of the Assurance Package, summing the amount to $9.6 billion.
Since this Assurance Package AP is higher, 2.6 million Singaporeans will benefit from it and get additional rebates totaling $700 and $2,250 for more than five years (2022 to 2026). You can see an increase of up to $650 compared to the 2022 budget.
Disbursement of Payouts
The government payout, released in April, will entail $440 to $ 760 U-save payments. You can also get the U-save payouts in July, October, and January 2024. Additionally, GSTV service and Conservancy Charges Rebates will be executed in April for 1.3-3.5 months.
GST Voucher cash payout will be issued from August and GSTV- Medisave. Then by Sept, the government will release U-save special payment for eligible Singaporeans – finally, July, October, and Jan 2024. Singaporeans households can enjoy GSTV-S&CC rebates.
Each eligible household’s rebates start from $440 to $760, considering the flat type. The qualified Singaporeans will receive double their normal GSTV-Usave rebate in 2023 via U-Save Cost of Living (COL) special payment. They will be credited in April 2023, July 2023, and finally, October 2023.
To get your GST Voucher cash payout amounts, you must register for PayNow-NRIC using PayNow-GIRO or any participating foreign or local bank around Singapore to get your GSTV on time. Afterward, you will receive payment to your PayNow NRIC-linked bank account.
If you lack a PayNow-NRIC linked bank account, another option is to log in to e-services using your Singpass. You can also check your PayNow-NRIC bank account information by visiting your bank.
If you lack the PayNow-GIRO participating local or foreign bank and PayNow-NRIC bank account, but you have your POSB/DBS, OCBC, or UOB bank account details, you will as well receive your GSTV through bank transfer.
Moreover, every Singapore citizen residing in the country using the GovCash can get their GSTV-cash alongside GSTV-Cash special payment at any OCBC ATM island-wide. After the facial verification, they only have to enter the Payment Reference Code (PRN) that they will receive by the end of August 2023.
The GovCash citizens do not need an OCBC bank account to withdraw their cash at the OCBC ATMs. They can also use the LifeSG app to make payments to their merchants by scanning the NETS QR code or PayNow.
Who Is Eligible?
To get a GST voucher cash payout in 2023. Below is a criterion that you must fulfill.
- You should be a Singapore citizen meaning you reside in Singapore
- Aged 21 years and above as per 2023
- The income you earn as assessed by IRAS (Assessable Income) must not exceed $34000 in 2023
- The Annual value (AV) of your residence, as stated in your NRCIC on 31 December 2021/2022, should not exceed $21000
- Finally, you must not possess more than one property
How to Apply
To apply for GSTV-cash payouts, you can log in to the GSTV e-services to specifically sign up online and apply for the GST payout.
As per budget 2023, every Singapore citizen will get higher GSTV cash payouts under the assurance package and Goods and Services Tax (GST). It will help Singaporeans cope with the higher inflation of goods and services and cushion the impact of the GST hike. Additionally, the voucher payouts will increase from S$500 to S$700 in 2023, to S$850 in 2024.
- The GSTV scheme is an initiative created by the Singaporean government that aims to help low and middle-income Singaporeans cope with the higher inflation of goods and services and cushion the impact of the GST hike.
- The voucher cash payout will increase from S$500 to S$700 in 2023, thereafter to S$850 in 2024.
- Provided you are eligible for this scheme, you can freely get four different GSTV components during the year. They include; GSTV-Medisave, GSTV-cash, GSTV-U-save, and GSTV- S&CC-Services and Conservancy Charges Rebate.
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