SINGAPORE: The annual value (AV) threshold, one of several eligibility criteria for social support schemes, will be raised in 2024, allowing those in need to continue receiving support.
The annual value of a property is the estimated rent that could be collected annually if it were to be rented out, and it is determined based on the market rate of comparable properties.
With the general rise in market rents for residential properties since 2022, the annual values of most residential properties were increased at the start of the year and will be further increased from 2024, the Ministry of Finance (MOF) said on Thursday (Nov 30).
Social support schemes - such as the GST Voucher scheme, MediShield Life premium subsidies, and the Workfare Income Supplement scheme - currently provide benefits based on two AV tiers.
The AV threshold for the first term, which is currently up to S$13,000, will be raised to S$21,000 from Jan 1, 2024.
The second tier has a current threshold of between S$13,000 to S$21,000. From next year, the threshold will be raised to more than S$21,000 and up to S$25,000.
According to MOF, the revised AV threshold of $21,000 will cover all HDB flats, while a S$25,000 threshold will cover about 75 per cent of residential properties, including some lower-value private properties.
An individual's or household's eligibility for social support schemes in a given year is determined by the preceding year's annual value.
This means that for benefits in 2024, the household’s 2023 annual value will be used to determine if it is eligible for the first or second tier of benefits.
For example, an eligible person living in a residential property with a 2022 annual value of S$11,000 would have received S$700 in GSTV Cash in 2023.
In 2024, if the individual's annual value is raised to S$14,000, they would receive S$850 in GSTV Cash. Without the latest AV revisions, the individual would have received S$450.
"The government will continue to review our social support schemes, including their eligibility criteria, to ensure that Singaporeans with greater needs receive support," said MOF.
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The annual value of a property is the estimated rent that could be collected annually if it were to be rented out, and it is determined based on the market rate of comparable properties.
With the general rise in market rents for residential properties since 2022, the annual values of most residential properties were increased at the start of the year and will be further increased from 2024, the Ministry of Finance (MOF) said on Thursday (Nov 30).
ANNUAL VALUE TIERS
Social support schemes - such as the GST Voucher scheme, MediShield Life premium subsidies, and the Workfare Income Supplement scheme - currently provide benefits based on two AV tiers.
The AV threshold for the first term, which is currently up to S$13,000, will be raised to S$21,000 from Jan 1, 2024.
The second tier has a current threshold of between S$13,000 to S$21,000. From next year, the threshold will be raised to more than S$21,000 and up to S$25,000.
According to MOF, the revised AV threshold of $21,000 will cover all HDB flats, while a S$25,000 threshold will cover about 75 per cent of residential properties, including some lower-value private properties.
An individual's or household's eligibility for social support schemes in a given year is determined by the preceding year's annual value.
This means that for benefits in 2024, the household’s 2023 annual value will be used to determine if it is eligible for the first or second tier of benefits.
For example, an eligible person living in a residential property with a 2022 annual value of S$11,000 would have received S$700 in GSTV Cash in 2023.
In 2024, if the individual's annual value is raised to S$14,000, they would receive S$850 in GSTV Cash. Without the latest AV revisions, the individual would have received S$450.
"The government will continue to review our social support schemes, including their eligibility criteria, to ensure that Singaporeans with greater needs receive support," said MOF.
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