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SG Budget 2017: 6 Changes That May Affect Your Household

This article was originally on GET.com at: SG Budget 2017: 6 Changes That May Affect Your Household

Delivered by Finance Minister Heng Swee Keat on 20 February 2017, the Singapore 2017 Budget certainly is a forward-looking one that strives to inculcate prudence while supporting Singapore's citizens and businesses as holistically as it can amidst the current sluggish economy that is fraught with uncertainties.

Here, we at GET.com highlight some of the changes that may affect your household coupled with a number of handy tips that will help you save some money.

6 Changes That May Affect Your Household

1. 30% Increase In Water Prices

The water tariffs will increase by approximately 30% over 2 phases - the first increase will take place from July 2017 and the second, from July 2018. The increase in water prices is necessary as the supply of water from local reservoirs and Johor Bahru become increasingly more unpredictable and Singapore has to rely on more expensive water sources such as Newater and desalination.

Average impact of water price increase for households. Source: Ministry of Finance

Tip: Learn how you can employ simple tips to reduce your utility bills in Singapore. Saving water doesn't have to be difficult. For instance, one can easily reduce water wastage when brushing teeth and shampooing by turning off the tap. Another quick and easy tip is to simply take shorter showers.

2. Increase In U-Save Rebates For HDB Households

Beginning this July, HDB households that are eligible will get to enjoy a permanent increase in the GST Voucher – U-Save rebate depending on the HDB flat type they are living in. This raise in the annual rebate is supposed to help households deal with the rise in water costs mentioned in the point above. Keep in mind that the GST Voucher – U-Save is given over 4 quarters in a calendar year, starting in January, April, July and October.

In addition, HDB households can also look forward to a raised and extended Service and Conservancy Charges rebate this year. 1-room and 2-room households will be given 3.5 months of rebates whereas 3-room and 4-room households will get 2.5 months of rebates.

Source: Ministry of Finance

3. Shave Your Income Tax Contribution

With the upcoming tax season approaching, taxpayers will be happy to know that they can embrace a personal income tax rebate of 20% on payable taxes, capped at $500, on their income earned in 2016.

Tip: Take note of eligible tax relief claims to help lower your payable tax even more, such as donating to approved institutions, parents relief, topping up your CPF Special Account, claiming course fees and insurance premiums against your taxable income etc.

4. Boost In Bursaries For Those In Post-Secondary Education Institutions

Eligible students who are studying in post-secondary education institutions such as polytechnics, junior colleges, ITEs and universities will receive higher annual bursary amounts.

For example, undergraduate students can receive up to $400 more while diploma students can receive up to $350 extra. In addition, more Singapore students will get to enjoy bursaries with the revision of the income eligibility criteria.

5. Increase In CPF Housing Grant For Resale Flats

Couples who are first-time homebuyers and happen to be looking at purchasing resale HDB flats will receive more subsidies. Those who want to buy a 4-room or smaller resale HDB flat will now receive a CPF Housing Grant of $50,000 instead of $30,000; those who want to buy a 5-room or bigger resale HDB flat will receive a CPH Housing Grant of $40,000 instead of $30,000.

Tip: Prudent homebuyers should really consider getting an HDB flat instead of private housing as they can make use of enhanced subsidies and other various grants that are available. For starters, here's how much money you'll need to buy your first HDB flat and here are the ways you can fund your flat via a HDB loan or bank loan. You can also use GET.com's proprietary Home Loan Genius comparison tool to find the latest fixed and floating home loan rates available in the market.

Find The Best Home Loan Rates

6. Pay More For Costly Motorbikes

Do you or a loved one fancy riding expensive motorcycles? If your answer is a resounding yes, it's time you start paying attention to the newly-introduced tiered Additional Registration Fees (ARF) that will be imposed on those who purchase expensive motorcycles.

This tiered ARF is targeted at the small but increasing population of motorcycle buyers who are willing to shell out big bucks to buy motorbikes with open market values as high as those of smaller cars.

According to Budget 2017, the ARF for motorbikes with an open market value of up to $5,000 will stay at the current rate of 15% while the next $5000 will be subject to a rate of 50%. The remaining open market value of the motorbikes exceeding the first $10,000 will be subject to a rate of 100%.

Tip: Consider joining the car-lite Singapore movement and definitely check out these easy ways to save money on transport in Singapore.

What do you think? Share your comments with us below!

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