GST Credits
6.2 Of this $4 billion, $1.8 billion will be given out in cash, in the form of GST Credits. All adult Singaporeans will receive GST Credits in annual instalments. The amount that a person receives will depend on two factors — his assessable income (AI) and the annual value (AV) of his home, which is used as a proxy for his wealth.
6.3 I will give lower-income Singaporeans larger GST Credits. Those who live in one- to three-room flats4 and have annual assessable incomes of $24,000 or less will qualify for the largest quantum of $1,000. This $1,000 will be paid out in instalments of $250 per year over four years. Nearly three-quarters of the population will receive GST Credits of $800, again in instalments of $200 each year over the next four years. Next, if you live in a larger home with an AV of more than $10,000 but your income is less than $100,000 a year, you will get $400 in GST Credits. The top income group comprising those earning over $100,000 a year will get $100 of GST Credits, paid one time. It is a small gesture, but recognises that the GST increase affects everyone.
Table 1 – Structure of GST Credits |
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6.4 NSmen and NSFs, including those aged below 21, will also get an additional $100 of GST Credits to recognise their contributions to national security. They will get their bonus GST Credits in the year that they qualify. So a person who becomes an NSF in 2008 or 2009 will also get the bonus GST Credits in that year.
6.5 Singaporeans will have to sign up just once to qualify for all four years of GST Credits though the amount they get will be assessed yearly, based on their income and residence. The first instalment will be paid out on 1st July this year, at the same time as the GST increase.
4This refers to those living in flats with AV of $5,000 or less. It covers virtually all HDB residents in one- to three-room flats.
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