Property value ceiling for social support schemes eligibility to be raised to cover all HDB, some private properties - TODAY

SINGAPORE — Eligibility limits for various social support schemes will be adjusted to reflect rising rents, to ensure that Singaporeans with greater needs continue to benefit, the Ministry of Finance (MOF) said on Thursday (Nov 30).

Such social support schemes, which are typically handed out based on criteria such as income and residential property annual value, include the Goods and Services Tax (GST) Vouchers and subsidies for MediShield Life insurance premiums under the Central Provident Fund.

A property’s annual value refers to the estimated annual rent of the property if it were to be leased, and is a measure used by the authorities to calculate property tax.

The ministry said that from Jan 1 next year, the lowest annual value ceiling to qualify for social support schemes will be raised by about 62 per cent from S$13,000 now to S$21,000.

The second tier of threshold is also being increased to more than S$21,000 up to S$25,000. This is higher than the existing range of above S$13,000 to S$21,000.

An individual or household’s eligibility for social support schemes in a given year is determined, in part, by the annual value of the property in the preceding year, MOF explained.

This means that to determine whether a household is eligible for first tier, second tier or any benefit at all in 2024, the household’s 2023 annual value will be assessed.

For example, an eligible individual who lives in a property with a 2022 annual value of S$11,000 would have received S$700 in cash GST Vouchers this year, because his property falls under the current first-tier threshold of S$13,000 and below.

If the annual value of his home increased to S$14,000 in 2023 and the threshold was not revised, he would have received a lower amount for the voucher next year, because the value would have fallen under the second tier instead.

With the first-tier qualifying ceiling raised to S$21,000, the person will now still be eligible to receive the higher-sum voucher.

“In view of the general rise in market rents for residential properties since 2022, the annual values of most residential properties were increased on Jan 1, 2023, and will be further increased from Jan 1, 2024,” MOF said.

It added that the revised threshold of up to S$21,000 will cover all public housing flats.

The second-tier threshold of up to S$25,000 would cover about 75 per cent of residential properties, including “some lower-value private properties”.

Responding to TODAY's queries on how many more households will qualify for social support under the two tiers after the revision, MOF said that more than a million residential properties remain covered.

"We revise the annual value threshold to ensure that the actual coverage of social schemes is not reduced relative to policy intent due to annual value increases."

The ministry added that the last time the annual value threshold was revised was in 2013, when it raised the second tier annual value for the GST Voucher scheme from S$20,000 to S$21,000.

HEALTHCARE SUBSIDIES AUTOMATICALLY ADJUSTED

Separately, the Ministry of Health (MOH) on Thursday said that it uses the residential property annual value together with per capita household income to determine the amount of subsidy or financial assistance that individuals are eligible to receive.

Any change in subsidy arising from the property annual value threshold changes announced by MOF on Thursday will automatically be extended to healthcare schemes, MOH added.

"Existing Chas (Community Health Assist Scheme) cardholders who are eligible for a Chas card with higher subsidies after the annual value refresh will be automatically issued with new Chas cards after Jan 1, 2024. No action is required from individuals," MOH said.

It gave an example of how a Singaporean with no household income but with a residential property annual value of S$13,000 and below is eligible for a B2 or C class hospital ward subsidy of 80 per cent under the 2023 benefits criteria.

Under the revised threshold next year, such an individual is eligible to receive the same 80 per cent subsidy if his property annual value is up to S$21,000.

"Individuals who face difficulties with their healthcare bills after government subsidies may approach their healthcare providers for assistance," MOH added.

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