8 ways Budget 2023 could affect you: More CDC vouchers and cash handouts

What happened?

Deputy Prime Minister and Finance Minister Lawrence Wong has shared that Budget 2023 will be his “Valentine’s Day present” to help Singaporeans cope with rising costs. 

Let us take a look at some of the key announcements made today as part of his Budget 2023 speech and evaluate how they could potentially impact you. 

8 ways Singapore Budget 2023 could affect you

#1 – More CDC vouchers

Who’s affected: All Singaporean households

All Singaporean households will also get another S$300 in CDC vouchers in January 2024. 

These CDC vouchers can be used at participating heartland merchants and hawkers, as well as participating supermarkets.

#2 – Cost of living special payment

Who’s affected: Eligible Singaporeans who are 21 and above this year, have annual assessable income below S$100,000 and do not own more than one property.

As part of the Assurance Package to allay inflation concerns, eligible Singaporeans will receive between S$200 and S$400 in June 2023. 

Those who earn up to S$22,000 a year will receive S$400, those earning between S$22,000 and up to S$34,000 will get S$300, and those between S$34,000 and up to S$100,000 will receive S$200.

#3 – Cost of living senior’s bonus

Who’s affected: Seniors aged 55 and above in June who have an annual assessable income of not more than S$34,000, live in a property with an annual value under S$21,000, and not own more than one property.

A "cost-of-living seniors' bonus" of between S$200 and S$300 will be given to eligible Singaporeans aged 55 and above in June.

#4 – GST Voucher Scheme

Who’s affected: Singaporeans aged 21 and above with annual assessable income of up to S$34,000

As part of the GST Voucher (GSTV) scheme to help to offset higher GST expenses, lower- to middle-income Singaporeans will receive a higher cash payout. 

For eligible Singaporeans residing in homes with an annual value of S$13,000 or below, the cash payout will be increased from S$500 to S$700 this year and to S$850 from next year. 

For those living in a property with an annual value above S$13,000 and up to S$21,000, the cash payout will be increased from S$250 to S$350 this year, and then to S$450 from 2024.

#5 – Increase in baby bonus

Who’s affected: Parents of babies born on 14 Feb 2023 and after

The Baby Bonus Cash Gift will be increased by S$3,000 for babies born from 14 Feb 2023.

Currently, parents receive S$8,000 each in Baby Bonus Cash Gift for their 1st and 2nd child, and S$10,000 for their 3rd child and beyond.

Following the changes, parents of babies born on 14 Feb 2023 and after will receive S$11,000 each for their first and second child, and S$13,000 for their third child and beyond. 

#6 – Housing grants

Who’s affected: First timer families who have not had any housing subsidies before

Housing grants for first-timer families buying resale flats that are 4-rooms or smaller will increase by up to S$30,000 to bring the total grant to S$80,000.

Eligible families who are buying flats that are 5-room or larger will get S$10,000 more, to bring the total grant to S$50,000.

#7 – Buyer’s stamp duty to increase for higher-value properties

Who’s affected: Those looking to buy a property valued at above S$1.5 million

The buyer’s stamp duty for higher-value residential properties is set to increase.

For residential properties, the portion of the value above S$1.5 million and up to S$3 million will be taxed at 5%, an increase from the current rate of 4%. The value of the property above S$3 million will be taxed at 6%.

This means that for a buyer of a residential property valued at S$2 million will have to pay an additional tax of S$5,000. 

The buyer of a residential property valued at S$3 million will have to pay an additional tax of S$15,000. 

#8 – CPF monthly salary ceiling raised from $6,000 to $8,000

Who’s affected: If your monthly wage is above S$6,000

The Central Provident Fund (CPF) monthly salary ceiling will be raised in phases from S$6,000 to S$8,000 by 2026.

If you are not familiar with the CPF monthly salary ceiling, it is the maximum amount of CPF contributions payable for ordinary wages. 

From September 2023, the CPF monthly salary ceiling will be increased by S$300 to S$6,300. This will be raised further to S$6,800 from January 2024, S$7,400 from January 2025 and S$8,000 from January 2026.