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GST Voucher Scheme Frequently Asked Questions

1. GENERAL INFORMATION ON THE GST VOUCHER SCHEME ........................................ 4

1.1 What is the Goods & Services Tax (GST)? ..................................................................................... 4

1.2 What is the GST Voucher? ............................................................................................................ 4

1.3 How much will the GST Voucher scheme cost the Government? ................................................ 4

1.4 Why is the Government giving out the GST Voucher? ................................................................. 4

1.5 Why is the Government giving the GST Voucher instead of exempting basic necessities from

GST, or reducing the GST rate? ..................................................................................................... 4

1.6 How long will the GST Voucher scheme last?............................................................................... 5

1.7 Why is the Government only setting monies aside for 5 years when the scheme is permanent?

Will the GST Voucher be reviewed? If so, when? ......................................................................... 5

1.8 I pay GST in cash. Why is the GST Voucher not given to me fully in cash to help with the GST

that I pay? ..................................................................................................................................... 5

1.9 Who is eligible for the GST Voucher? ........................................................................................... 5

1.10 How will I know if I qualify for the GST Voucher? ........................................................................ 5

1.11 How can I know how much I will receive from the GST Voucher? ............................................... 5

1.12 How can I use my GST Voucher? Do I have to redeem it? ........................................................... 5

1.13 If I qualify in 2012, when will I receive my GST Voucher? ............................................................ 5

1.14 Who can I contact for more information on the GST Voucher? ................................................... 6

2. GST VOUCHER – CASH .............................................................................................. 7

2.1 Am I eligible for the GST Voucher – Cash? ................................................................................... 7

2.2 Do I need to sign up for the GST Voucher – Cash? If so, how can I sign up?................................ 7

2.3 How much GST Voucher – Cash can I receive? ............................................................................. 7

2.4 Why use both AI and AV to determine the amount one receives? .............................................. 7

2.5 Who will benefit from the Assessable Income (AI) cut-off of $24,000?....................................... 7

2.6 What is my Assessable Income (AI) for the Year of Assessment (YA) 2011? ............................... 8

2.7 What is the Annual Value (AV) of my home? ............................................................................... 8

2.8 Who will benefit from the AV cut-offs $13,000 and $20,000? ..................................................... 8

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2.9 Why is there a need to exclude those with a second property and what constitutes a second

property? ...................................................................................................................................... 8

2.10 I own a second property, but I earn a very low income and am in financial difficulty. Can I get

my GST Voucher? .......................................................................................................................... 8

2.11 How and when will I receive my GST Voucher – Cash? ................................................................ 8

2.12 The GST Voucher – Cash is insufficient to cover my out-of-pocket GST expense. Will the

Government top up my GST Voucher? ......................................................................................... 9

2.13 Is there a deadline to sign up? ...................................................................................................... 9

2.14 I would like to donate my GST Voucher – Cash to charity. How can I do so? .............................. 9

2.15 Who can I contact for more information on the GST Voucher – Cash? ....................................... 9

3. GST VOUCHER – MEDISAVE .................................................................................... 10

3.1 Am I eligible for the GST Voucher – Medisave? ......................................................................... 10

3.2 How much will I receive in my GST Voucher – Medisave? ......................................................... 10

3.3 What happens if my Medisave balance has already reached the prevailing Medisave

Contribution Ceiling? .................................................................................................................. 10

3.4 Who will benefit from the AV cut-offs $13,000 and $20,000? ................................................... 11

3.5 Why is there a need to exclude those with a second property and what constitutes a second

property? .................................................................................................................................... 11

3.6 I own a second property, and am in financial difficulty. Can I get my GST Voucher? ................ 11

3.7 When will the GST Voucher – Medisave be credited to my CPF Medisave account? ................ 11

3.8 I am eligible for the GST Voucher – Medisave. Do I need to sign-up before I can receive my

top-up? ....................................................................................................................................... 11

3.9 I am eligible for the GST Voucher – Medisave, but I am not a CPF member and do not have a

CPF Account. Do I have to open one first before I can receive the GST Voucher – Medisave? . 11

3.10 Who can I contact for more information on the GST Voucher – Medisave? ............................. 11

4. GST VOUCHER – U-SAVE ........................................................................................ 12

4.1 Will my household be eligible for the GST Voucher – U-Save? .................................................. 12

4.2 How much GST Voucher - U-Save will my household receive? When will I receive it? ............. 12

4.3 What happens if my utilities bill is less than the GST Voucher - U-Save given to me in that

month?........................................................................................................................................ 12

4.4 Will my GST Voucher - U-Save lapse? ......................................................................................... 13

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4.5 How many months of utilities bills will I be able to offset?........................................................ 13

4.6 Why is there a need to exclude those with a second property and what constitutes a second

property? .................................................................................................................................... 13

4.7 I own a second property, and am in financial difficulty. Can I get my GST Voucher-U-Save? ... 13

4.8 Who can I contact for more information on GST Voucher – U-Save? ........................................ 13

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1. GENERAL INFORMATION ON THE GST VOUCHER SCHEME

1.1 What is the Goods & Services Tax (GST)?

The Goods & Services tax (GST) is a tax on domestic consumption. The tax is paid when money

is spent on goods or services, including imports. It is a tax on the value added at every stage of

the production and distribution chain.

1.2 What is the GST Voucher?

The GST Voucher is meant to help lower- and middle-income households with their expenses,

in particular, what they pay in GST. The GST Voucher will be given in three components - Cash,

Medisave and U-Save.

1.3 How much will the GST Voucher scheme cost the Government?

The GST Voucher scheme will cost $680 million in FY2012. The Government will set aside $3.6

billion to finance the scheme for the first 5 years.

1.4 Why is the Government giving out the GST Voucher?

Taken as a whole, the GST is part and parcel of a progressive fiscal system, where the poor

receive far more benefits compared to the taxes they pay. This is because we have introduced

programmes such as Workfare and enhanced our subsidies to help lower-income families. On

its own however, the GST is a flat tax, and therefore regressive, taking up more of the pay of

those with low incomes. When GST was raised in 2007, we also provided a substantial package

of temporary offsets for individuals and households, which ended last year. To carry on with

these offsets, the Government has introduced a permanent GST voucher to help lower- and

middle-income Singaporeans. The GST Voucher will provide continuing assurance that our GST

does not hurt the poor.

1.5 Why is the Government giving the GST Voucher instead of exempting basic

necessities from GST, or reducing the GST rate?

The GST Voucher is the most effective way of supporting the lower-income and elderly, as it

provides direct offsets to help with household expenses. To exempt certain items from GST, or

cut the GST rates, would be counterproductive.

The experience of many countries and relevant studies also show that a multi-rate GST system

subsidises the consumption of the higher-income groups more; distorts consumption and

production, and raises businesses costs significantly, which are then passed on to consumers.

Cutting the GST rate will benefit the rich more. Even when we look at basic necessities, the

bulk of the GST is paid by those who are better off. They consume more of everything, not just

luxury items, but basic necessities as well. It is therefore much better to collect the GST on

essential goods from everyone, and use the resources to support the poor directly. Having

said that, we already provide subsidies to directly offset GST on basic government services

such as healthcare and education.

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1.6 How long will the GST Voucher scheme last?

The GST Voucher is a permanent scheme, with benefits given out yearly. This is to give lower-

income Singaporeans and the elderly assurance of a fair system of taxes and benefits in

Singapore.

1.7 Why is the Government only setting monies aside for 5 years when the scheme

is permanent? Will the GST Voucher be reviewed? If so, when?

As the GST Voucher scheme is a long-term feature of our fiscal system, the Government is

setting up a fund from which payouts will be made in the coming years. The initial transfer will

be $3.6 billion for the first 5 years of the scheme.

1.8 I pay GST in cash. Why is the GST Voucher not given to me fully in cash to help

with the GST that I pay?

The GST Voucher is meant to support living expenses for both immediate and longer-term

needs. It has 3 parts – Cash, Medisave and U-Save. The Cash and U-Save rebate help to offset

some immediate cash outlays, such as your grocery and utilities bills. The Medisave top-up will

help the majority of elderly Singaporeans with their medical expenses.

1.9 Who is eligible for the GST Voucher?

The GST Voucher is meant for lower- and middle-income Singaporeans. See details on

eligibility for each component in Sections 2.1, 3.1 and 4.1.

1.10 How will I know if I qualify for the GST Voucher?

Letters will be sent out each year to eligible Singaporeans. If you are eligible for the GST

Voucher in 2012, you will receive a letter in July 2012 to inform you of the amount you will

receive. If you are eligible for the GST Voucher in 2013 and beyond, you will continue to

receive letters each year informing you of the amount that you will get.

1.11 How can I know how much I will receive from the GST Voucher?

If you are eligible, the Government will send you a letter in July 2012 to inform you of your

GST Voucher. If you would like an estimate of the total amount of benefits that you and your

household may receive from the GST Voucher, you may refer to the GST Voucher calculator at

www.singaporebudget.gov.sg/hc.html.

1.12 How can I use my GST Voucher? Do I have to redeem it?

If you are eligible, your GST Voucher may be in the form of cash, a top-up to your CPF

Medisave account, and/or a U-Save rebate. The cash will be credited into your bank account

that was used for the last Government payout (e.g. Growth Dividends or GST Credits). If the

bank account is closed, a cheque will be mailed to you. The Medisave top-up will be credited

to your CPF Medisave account. The U-Save rebate will be used to offset your household’s

utilities bills. There is no need for a physical redemption of your GST Voucher.

1.13 If I qualify in 2012, when will I receive my GST Voucher?

You will receive your GST Voucher – Cash and/or Medisave in August 2012. You will receive

your U-Save rebate in July 2012. Letters will be sent to you.

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1.14 Who can I contact for more information on the GST Voucher?

For more information on the GST Voucher – Cash and Medisave, you can email gstvoucher@cpf.gov.sg or call 1800 2222 888 (Mon-Fri: 8am–6pm). For more information on the GST Voucher – U-Save, you can email spservices@singaporepower.com.sg or call 1800 2222 333 (Mon-Fri: 8am–6pm).

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2. GST VOUCHER – CASH

The GST Voucher – Cash will be given to all adult Singaporeans who are not working or whose

incomes fall within the bottom 40%. It will be paid out in August each year (starting 2012).

2.1 Am I eligible for the GST Voucher – Cash?

To receive the GST Voucher – Cash in 2012, you must fulfil the following criteria:

i) You must be a Singapore citizen, residing in Singapore;

ii) You must be aged 21 or above in 2012;

iii) Your Assessable Income (AI) for the Year of Assessment (YA) 2011 must not exceed

$24,000 (i.e. income earned in Calendar Year 2010 as assessed by IRAS);

iv) The Annual Value (AV) of your home (as indicated on your NRIC) as at 31 December 2011

must not exceed $20,000; and

v) You must not own a second property.

If you meet the above criteria and have signed up previously for a Government payout (such

as the Growth Dividend or GST Credits), you will automatically receive your payout. If you

have not done so, the Government will send you a letter in July 2012 if you qualify.

2.2 Do I need to sign up for the GST Voucher – Cash? If so, how can I sign up?

If you meet the above criteria in Section 2.1 and have signed up previously for a Government

payout (such as the Growth Dividend or GST Credits), you will automatically receive your

payout. If you have not done so, the Government will send you a letter in July 2012 with

details on how you can sign up.

2.3 How much GST Voucher – Cash can I receive?

If you meet the above eligibility criteria, the GST Voucher – Cash that you will receive is shown

in the table below:

Structure of GST Voucher - Cash

Assessable

Income for

YA2011

Annual Value of Home as at 31 Dec 2011

Up to $13,000 $13,001 to $20,000

< $24,000 $250 $100

2.4 Why use both AI and AV to determine the amount one receives?

Your AI and AV, when taken together, provide a reasonable proxy of means. This ensures that

the GST Voucher – Cash is targeted at our most vulnerable groups.

2.5 Who will benefit from the Assessable Income (AI) cut-off of $24,000?

The $24,000 cut-off roughly corresponds to the bottom 40% of Singaporean workers.

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2.6 What is my Assessable Income (AI) for the Year of Assessment (YA) 2011?

AI is your total income less deductible expenses and approved donations. Your total income

would include your employment income (which includes the additional wage supplement or

bonus that you may receive), trade income, rental income and other incomes.

AI can be found on your tax bill (or Notice of Assessment) that you receive each year if you are

required to pay taxes. If you are not required to pay taxes for YA2011, you may be eligible for

the GST Voucher – Cash, if your AI for YA2011 does not exceed $24,000 and you meet the

other criteria in 2.1.

To view your Notice of Assessment, please login to myTax Portal using your SingPass/IRAS PIN

> Messages > Correspondence & Notices > Individual Income Tax > Letters/Notices.

2.7 What is the Annual Value (AV) of my home?

The AV is the estimated annual rent a property can fetch if it were to be rented out. It is used

to calculate the property tax of your home. The AV can be found on the property tax bill that

you receive each year.

To check the AV of your home, please log in to myTax Portal using your SingPass/IRAS PIN >

Messages > Correspondence & Notices > Property Tax > Letters/Notices.

2.8 Who will benefit from the AV cut-offs $13,000 and $20,000?

The AV cut-off of $13,000 covers all HDB and smaller private homes with similar value. The AV

cut-off of $20,000 covers lower-value, or about 15% of private homes.

2.9 Why is there a need to exclude those with a second property and what

constitutes a second property?

As the GST Voucher is targeted at lower-income families, we should exclude individuals who

own several properties, who are likely to be well-off. A second property is any second

property that you own. It may be an HDB flat or shophouse, private residential property or

non-residential property.

2.10 I own a second property, but I earn a very low income and am in financial

difficulty. Can I get my GST Voucher?

You may write in to the Government. We will consider such cases on a case-by-case basis, and

look at the combined AV of your properties.

If you require further assistance, you may approach any Community Development Council,

Citizens’ Consultative Committee or Family Service Centre, who will assess your situation and

provide you with the necessary assistance.

2.11 How and when will I receive my GST Voucher – Cash?

If you are eligible for the GST Voucher – Cash in 2012, the Government will send you a letter in

July to inform you of the amount you can receive. You will receive the cash payout in August

2012.

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2.12 The GST Voucher – Cash is insufficient to cover my out-of-pocket GST expense.

Will the Government top up my GST Voucher?

The GST Voucher – Cash should be considered together with the other components of the GST

Voucher. When taken together with the other components, the GST Voucher will provide

retiree households staying in 1- to 3-room flats a full rebate for the GST that they spend on

average every year.

Younger low-income families (without elderly dependents) in 3- and 4-room flats will also see

about half of their total GST bills offset by the GST Voucher.

If your household is in financial difficulty despite the GST Voucher, you may approach any

Community Development Council, Citizens’ Consultative Committee or Family Service Centre,

who will assess your situation and provide the necessary assistance.

2.13 Is there a deadline to sign up?

There is no need to sign up if you have previously signed up for your Government payout (e.g.

Growth Dividend or GST Credits). Details will be given in July 2012.

2.14 I would like to donate my GST Voucher – Cash to charity. How can I do so?

You may donate the money to a charity of your choice. If you prefer to do so online, you may

visit www.sggives.org.

2.15 Who can I contact for more information on the GST Voucher – Cash?

You can email gstvoucher@cpf.gov.sg or call 1800 2222 888 (Mon-Fri: 8am–6pm) for more

information.

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3. GST VOUCHER – MEDISAVE

The GST Voucher – Medisave will be given to all elderly Singaporeans aged 65 and above, who

have less means. It will be credited to their Medisave accounts in August each year (starting

2012).

3.1 Am I eligible for the GST Voucher – Medisave?

To receive the GST Voucher – Medisave in 2012, you must fulfil the following criteria:

i) You must be a Singapore citizen, residing in Singapore;

ii) You must be aged 65 and above in 2012;

iii) The Annual Value of your home (as indicated on your NRIC) as at 31 December 2011 must

not exceed $20,000; and

iv) You must not own a second property.

If you meet the above criteria but are not a CPF member yet, the Government will send you a

letter in July 2012 to share more details on how you can sign up. Once you sign up for your

GST Voucher - Cash, your Medisave top-up will automatically be credited.

3.2 How much will I receive in my GST Voucher – Medisave?

If you meet the above eligibility criteria, the amount of GST Voucher – Medisave you can

receive is shown in the table below:

Structure of GST Voucher - Medisave

Age Annual Value of Home as at 31 Dec 2011

Up to $13,000 $13,001 to $20,000

65-74 $250 $150

75-84 $350 $250

≥ 85 $450 $350

3.3 What happens if my Medisave balance has already reached the prevailing

Medisave Contribution Ceiling?

For those whose Medisave Account balances have reached the prevailing Medisave Contribution Ceiling, the top-up amount in excess of the ceiling will be credited to the following CPF accounts, based on prevailing CPF rules on overflow of Medisave savings:

Age Excess amount will be credited to

Less than 55 years old and

did not meet CPF Minimum Sum CPF Special Account

Aged 55 years old and above, and

did not meet CPF Minimum Sum CPF Retirement Account

Meet CPF Minimum Sum CPF Ordinary Account

For more information on CPF Minimum Sum Scheme, click here.

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3.4 Who will benefit from the AV cut-offs $13,000 and $20,000?

The AV cut-off of $13,000 covers all HDB and smaller private homes with similar value. The AV

cut-off of $20,000 covers lower-value, or about 15% of private homes.

3.5 Why is there a need to exclude those with a second property and what

constitutes a second property?

As the GST Voucher is targeted at lower-income families, the intention is to exclude

individuals who own several properties, and are likely to be better off. A second property is

any second property that you own. It may be an HDB flat or shophouse, private residential

property or non-residential property.

3.6 I own a second property, and am in financial difficulty. Can I get my GST

Voucher?

You may write in to the Government. We will consider such cases on a case-by-case basis, and

look at the combined AV of your properties.

If you require further assistance, you may approach any Community Development Council,

Citizens’ Consultative Committee or Family Service Centre, who will assess your situation and

provide you with the necessary assistance.

3.7 When will the GST Voucher – Medisave be credited to my CPF Medisave account?

If you qualify for the GST Voucher – Medisave in 2012, the amount will be credited to your CPF

Medisave account in August 2012.

3.8 I am eligible for the GST Voucher – Medisave. Do I need to sign-up before I can

receive my top-up?

If you meet the eligibility and are a CPF member, you will automatically receive your GST

Voucher – Medisave. Details will be given in a letter to eligible Singaporeans in July 2012.

3.9 I am eligible for the GST Voucher – Medisave, but I am not a CPF member and do

not have a CPF Account. Do I have to open one first before I can receive the GST

Voucher – Medisave?

The Government will send you a letter in July 2012 with more details.

3.10 Who can I contact for more information on the GST Voucher – Medisave?

You can email gstvoucher@cpf.gov.sg or call 1800 2222 888 (Mon-Fri: 8am–6pm) for more

information.

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4. GST VOUCHER – U-SAVE

The GST Voucher – U-Save will be given to Singaporean HDB households. The rebate will be

given out in January and July each year, starting July 2012.

4.1 Will my household be eligible for the GST Voucher – U-Save?

To receive the GST Voucher – U-Save (which will be credited to your HDB flat’s utilities

account), your household has to fulfil the following conditions:

i) At least one household member is a Singapore citizen:

a) If you own and live in the HDB flat, there must be at least one Singapore citizen

occupant in the flat; or

b) If you partially sublet the HDB flat that you live in, there must be at least one

Singapore citizen lessee or occupant in the flat; or

c) If the entire flat is sublet to you, there must be at least one Singaporean tenant;

AND

ii) All occupants of your household must not own or have any interest in a second property.

4.2 How much GST Voucher - U-Save will my household receive? When will I receive

it?

If your household meets the above eligibility criteria, you will receive your GST Voucher - U-

Save every half yearly, starting July 2012 (see below). If you continue to qualify, you will

receive the next rebate in January 2013, July 2013 and so on.

Flat Type Jan

2012 #

Jul

2012

Total

Received

in 2012

Jan

2013

Jul

2013

Total

Received in

2013

HDB 1-2 Room $90 $130 $220 $130 $130 $260

HDB 3 Room $50 $120 $170 $120 $120 $240

HDB 4 Room $45 $110 $155 $110 $110 $220

HDB 5 Room $30 $100 $130 $100 $100 $200

HDB Executive $20 $90 $110 $90 $90 $180

# These rebates were the last payout under the GST Offset Package.

4.3 What happens if my utilities bill is less than the GST Voucher - U-Save given to

me in that month?

Any amount remaining from your GST Voucher – U-Save will be rolled over and used to pay

your utilities bills in the following months.

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4.4 Will my GST Voucher - U-Save lapse?

Your unused GST Voucher - U-Save will continue to be rolled over to help offset your utility

bills for the following months. It will lapse only when your utilities account is closed.

4.5 How many months of utilities bills will I be able to offset?

If you live in a 1- or 2-room HDB flat, you will receive $260 a year in GST Voucher – U-Save,

which will be able to offset about 3 to 4 months of your utility bills. If you live in a 3- or 4-room

HDB flat, you will receive $220 or $240 a year in your annual GST Voucher – U-Save, which will

be able to offset about 1 to 2 months of your utility bills.

4.6 Why is there a need to exclude those with a second property and what

constitutes a second property?

As the GST Voucher is targeted at lower-income families, the intention is to exclude

individuals who own several properties, and are likely to be better off. A second property is

any second property that you own. It may be an HDB flat or shophouse, private residential

property or non-residential property.

4.7 I own a second property, and am in financial difficulty. Can I get my GST

Voucher-U-Save?

You may write in to the Government. We will consider such cases on a case-by-case basis, and

look at the combined AV of your properties.

If you require further assistance, you may approach any Community Development Council,

Citizens’ Consultative Committee or Family Service Centre, who will assess your situation and

provide you with the necessary assistance.

4.8 Who can I contact for more information on GST Voucher – U-Save?

You can email SP Services at spservices@singaporepower.com.sg or call 1800 2222 333 (Mon-

Fri: 8am–6pm) for more information.