Budget 2024: Here are 6 key points from CPF changes, CDC vouchers to property tax

 

SINGAPORE: Deputy Prime Minister Lawrence Wong on Friday (Feb 16) announced several financial support measures to help Singaporeans and businesses.

Mr Wong announced this while presenting the Budget 2024 statement - which may be his last Budget before the transition of leadership of the country.

The supportive measures include more payments to ease the cost of living burden, making pre-school more affordable and the SkillsFuture Enhancement Program to help mid-career workers.

Here are six key things about Budget 2024 that you need to know:

1. Financial assistance

Singaporeans will receive more payments from the government such as Community Development Council (CDC) vouchers and Goods and Services Tax (GST).

All households will receive another S$600 CDC voucher. Half will be distributed at the end of June and the rest in January 2025.

Adult Singaporeans who live in Singapore, do not own more than one property and have a taxable income of up to S$100,000 will receive between S$200 and S$400 "special payment" cost of living.

Those between the ages of 21 and 50 will receive a MediSave bonus of between S$100 and S$300 in December.

All former and current national service (NS) members, including those who will undergo NS by 31 December 2024, will receive S$200 LifeSG credit in November.

A personal income tax rebate of 50 per cent will be granted, in year of assessment 2024. This is capped at S$200 mainly for the benefit of middle-income earners.

Low-wage workers who take home S$3,000 or less will be eligible for the Workforce Supplementary Income Scheme from January 2025. The scheme provides cash payments and CPF top-ups as an incentive to encourage them to continue working and save for retirement. The current eligible monthly salary is S$2,500

2. Support for the family

Mr. Wong also announced several measures to make preschool more affordable, especially for low-income families.

The monthly fee cap for children in government-supported preschools will be reduced in 2025, with the cap being lowered again the following year.

Children from low-income families, including those whose mothers do not work, will receive higher subsidies than are currently given to working mothers.

Low-income families with young children living in public rented flats will also receive more help through the ComLink+ Progress Package, including a boost to the Child Development Akan (CDA) if they ensure their children regularly attend pre-school.

Families under ComLink+ can also receive a financial boost when they demonstrate progress in achieving long-term goals while working with a family coach.

Separately, to help families with children with special needs, the government will reduce the maximum monthly fee at special education schools to S$90 - down from the current S$150.

Fee limits at all care centers for students with special needs will also be lowered to reduce the expenses incurred by families.

More couples who have booked Build to Order (BTO) flats, but are still waiting for their flats to be built, will be able to rent HDB flats on the open market.

The government will provide vouchers for the Parenting Temporary Housing Scheme (Open Market) for one year.

3. Steps of SkillsFuture

Mr. Wong introduced several measures to enhance the national SkillsFuture movement.

A new Enhancement Program will be introduced to better support mid-career workers - that is Singaporeans aged 40 and above.

This is what they will receive:

Another S$4,000 in SkillsFuture credits in May, to be used for certain training programs.

Younger Singaporeans will receive a boost when they turn 40.

Subsidies to follow full-time diploma courses at polytechnics, Institutes of Technical Education (ITE) and arts institutions from academic year 2025.

Monthly training allowance for certain full-time courses, capped at S$3,000 per month.

For laid-off workers, the government is fine-tuning financial support schemes to help them undergo training or find new jobs. The details will be revealed later.

4. CPF changes

ITE graduates will receive S$10,000 in CPF Ordinary Accounts (OA) if they obtain a diploma, as part of the financial incentive for them to further their education.

CPF contributors aged 55 and above can receive higher monthly payments from next year. This is because they will be able to enter more 

put money into their Retirement Account (RA).

The Enhanced Retirement Amount, which is the maximum amount that contributors can put into their Retirement Account to receive payment, will be increased by three to four times the Basic Retirement Amount.

The Special Account will be closed for those aged 55 and above, with the savings in the account transferred to the Retirement Account (RA) until it reaches the Full Retirement Amount, which is double the basic amount. The balance will be transferred to the Ordinary Account (OA).

Seniors aged 70 and above will also be eligible for a dollar-for-dollar match of cash deposits into their CPF accounts from next year, under the Matched Retirement Savings Scheme.

The CPF contribution rate for older workers was also increased as planned. The rate for workers aged 55 to 65 will be increased by 1.5 percentage points next year.

5. Property tax

Some homeowners will pay lower property taxes when the annual value (AV) range for owner-occupant properties is increased next year.

From 1 January 2025, the lowest level of the AV range will be increased from S$8,000 to S$12,000. The highest level will be increased from over S$100,000 to over S$140,000. Adjustments will be made on other ranges.

This means homeowners can expect the same or lower property taxes for each range, if there are no changes to their AV and before any rebates are given.

Meanwhile, from Friday, single Singaporeans aged 55 and above will also receive a refund of buyer's stamp duty (ABSD) paid on second properties. This is if they sell the first property within six months.

6. Healthy Aging

To help the elderly age actively and continue to form social connections, the government will allocate S$3.5 billion over the next decade for initiatives under SG's Healthy Aging scheme.

Seniors can enjoy "twilight enhancements" in the form of therapy gardens and barrier-free ramps on their estates, in addition to in-home facilities and an elderly-friendly bus stop centre.

Details of the Advance Package are also announced.

Singaporeans born in 1973 or before will receive at least one form of CPF top-up.