Assurance Package + GST Voucher: Everything You Need to Know

On 1 January 2023, the planned GST increment from 7% to 8% took effect. To help Singaporeans tide over the high inflation and increase in fuel and food prices, the Singapore Government announced enhancements to the Assurance Package (AP).

As announced during Budget 2023, the Assurance Package will have an increase of S$3 billion, bringing the total from S$6.6 billion to S$9.6 billion. With this increase, every Singaporean aged 21 years and older will receive payouts between S$700 and S$2,250 over five years of the AP.

On top of that, the Government also enhanced the GST Voucher Scheme, so it continues to provide help for lower- to middle-income Singaporean households. These enhancements aim to support Singaporeans in 2023 amid high inflation, cushion the impact of the higher GST rate (Goods and Services Tax), and address immediate cost-of-living (COL) concerns.

Read also: How Much to Retire in Singapore and Personal Loan

What is the Assurance Package for GST?

The Assurance Package (AP) for GST is a new initiative to help Singaporeans cushion the effects of the GST increase. Under the enhanced AP, the majority of Singaporean households will receive cash payouts to cover at least five years’ worth of increased GST expenses. Those belonging to lower-income households will receive cash payouts covering 10 years’ worth of increased GST expenses.

The AP is comprised of:

• Cash payments for all adult Singaporeans
• Additional cash payouts for lower-income seniors
• Additional GST voucher
• U-Save, MediSave top-ups for children and seniors
• Community Development Council CDC Vouchers

How much is SG Assurance payout?

Singaporeans who are 21 years old and above will receive a cash payout amounting to S$700 and S$2,250 over five years of the AP. The actual amount you’ll receive is based on two factors:

• The number of properties you own
• Your Assessable Income (AI) for the year

Note: The calculation of your Assessable Income will take into account all your sources of income, including your employment and rental income.

Not sure how much your AI amounts to? You can check your tax bill or Notice of Assessment on the IRAS website.

Consider this illustration:

For example, you own more than one property. You will receive a cash payout of either S$100 or S$200 per year over the next 5 years, bringing the total to S$700 for 5 years.

But what if you only own one property or none at all?

In such a case, your AI will determine your payout amount. Say your Assessable Income is S$34,000 or below, then you’ll receive the highest payout from the Assurance Package. The payout will amount to S$200 and S$400 throughout the next 5 years. The total will be around S$1,600.

For Budget 2023, an additional S$300 and S$650 will be issued in December. This will bring your AP Cash payout to S$2,250 over five years. 

At a Glance

Take a look at the table below to further understand how the enhanced Assurance Package works

(Source: Ministry of Finance)

Aside from cash payouts, AP also provides the following:

GST Voucher – Cash (Senior’s Bonus)

This component offers additional payouts between S$600 and S$900 for lower-income Seniors.

(Source: Ministry of Finance)

GST Voucher U-Save and MediSave Top-Ups

Take a look at the tables below for their corresponding payouts:

(Source: Ministry of Finance)

Who Is Eligible for the 2023 Assurance Package?

As previously mentioned, the Assurance Package for GST has different components. Here are the eligibility criteria for each component:

Assurance Package Cash (AP Cash)

• Eligible Singaporeans who are 21 years old and above
• Eligible seniors will receive a special GSTV- Cash (Seniors’ Bonus) amounting to S$600 to S$900.

Note: The individual’s Assessable Income and property ownership will also be taken into account. These criteria will provide the government with a reasonable and practical way to assess the individual’s means.

GST Voucher (GSTV) – Cash (Seniors’ Bonus)

• Aged 55 years and above
• Have an Assessable Income not exceeding S$34,000
• Have an Annual Value of property not more than S$21,000
• Do not own more than one property

Additional GST Voucher (GSTV)- U-Save

This AP Package component is only available for eligible HDB household:

• If you own or live in your HDB Flat, at least (1) owner or occupier of the flat must be Singaporean.
• If you partially rent out the HDB Flat that you own and live in, at least (1) owner or occupier of the flat must be Singaporean.
• If you rent an entire flat, there must be at least (1) Singaporean tenant
• Immediate family members living in the same flat must not own or have any interest in more than one property

Note: Eligible households will enjoy additional U-Save rebates between S$330 and S$570 (depending on the type of HDB flat)

MediSave Top-ups

• All Singaporeans who are 20 years old and below; or
• Singaporeans who are 55 years old and above

CDC Vouchers Scheme

• All Singaporean households are automatically eligible for this scheme.

Closing

With the high inflation, rising fuel and food prices, and higher GST, Singapore households will be facing more financial challenges. Thankfully, the Singapore Government continues to initiate new schemes as well as enhance existing financial assistance to support Singaporean families – especially vulnerable groups.

Key Takeaways

• The Assurance Package for GST is a new initiative to help Singaporeans cushion the effects of the GST increase.
• With the enhanced scheme, every Singaporean aged 21 years and older will receive total AP cash payments between S$700 and S$2,250 over five years of the AP.
• The AP Package consists of cash payouts, GSTV- Cash for Seniors, U-Save, MediSave top-ups, and CDC vouchers.

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