New Changes in Singapore for 2024

 

Happy New Year!

It's another new year, and change is the only constant in Singapore. 

Here's what's going to change in Singapore for 2024.

1 Another GST Increase

From Jan 1 2023, GST will increase from 8% to 9 %. This is another 1 % rise from last year. Many retailers then use this opportunity to adjust their gross prices, too. As we observed earlier this year, 16% or more increases are not unheard of. 

Will inflation continue on the upside of 2024?

2 Property tax for 2024 will increase for most homes

 The highest increase will be from 23% to 32% for properties with an annual value above $100,000.

Source: IRAS

Property Tax calculation is based on annual value. The yearly value of HDB Flats and most Private Properties are set to rise from Jan 1 due to higher market rents. As a result, this creates a double whammy due to increasing annual value and Property Tax.

To mitigate this expected increase, the Government will provide a one-off tax rebate of up to 100 per cent for all owner-occupied homes to help cushion the impact of the tax increases.

3 Higher Annual Value Thresholds for Social Support Scheme

Annual value thresholds to determine eligibility for social support schemes will rise to ensure continued help for Singaporeans with more significant needs. These schemes include the GST voucher scheme and MediShield Life Premium subsidies.

From Jan 1 2024, the annual value threshold will increase from $13,000 to $21,000 for the first tier. The second tier will also be increased to $25,000 from $21,000. 

4 Increase in Minimum Retirement Sum for CPF

If you turn 55 next year, note that there will be an increase in CPF minimum sum for Basic Retirement Sum, Full Retirement Sum and Enhanced Retirement Sum.FRS will increase by about 3.5% to $205,800. A higher retirement sum also implies a higher payout for retirement.

5 CPF Basic Healthcare Sum to increase to $71,500

This is an increase from $68,500  to $71,500 for 2024.

6 CDC Vouchers to increase to $500 for every Singaporean household

You will receive these CDC vouchers in Jan 2024. Just in time for CNY grocery shopping for the reunion dinner.

7 EV Early Adoption Incentive to continue in 2024 at a lower rebate

The current rebate for EV cars is at a rebate of 45% off ARF, capped at $20,000. The cap will be reduced to $15,0000 for 2024.

8 No more secondary school streaming in 2024

Say goodbye to Normal and Express streams in 2024. This will be replaced with subject-based banding. 2024 cohort will also not be taking the traditional O or N Level exams, instead a common exam will be introduced in its place.

 For more information, read this guide.

9 52 schools to welcome new principals in 2024

There will be a total of 52 new school principals for 2024. The full list can be found here.

10 Property Agents commissions for change from July 2024

It is an almost well known fact that an agent offering co-broke does not often share equal commissions with their co-broke partners. Some seller agents take advantage of exclusive agreements to provide as low as 0.5% to co-broke agents serving the buyer side and take the lion's share of the commissions in an often unfair situation. So, seller agents also deliberately block buyer agents from viewing by ignoring requests to not share the commission.

16 property agencies (88% of the market) had inked a pact to mitigate this. This includes agencies like PropNex, ERA, Huttons, OrangTee Tie and the Singapore Estate Agents Association.

The main change is that it calls for buyer or rental agents to collect commission fees from buyers or tenants (similar to HDB)

This is actually good for both agents and both buyers and sellers. For agents, it will make it easier to arrange viewings for clients, thus increasing their choices. Buyers will know that agents will fully consider their interests without any potential conflicts. Sellers may also pay less than the usual 2%, as this may lead to more competition among seller agents to offer a lower commission for selling.

11 Bayshore BTO to launch in 2024

Source: HDB

Bayshore is set to have its own public housing with the launch of 2 BTO under the PLUS scheme in 2024. This will be the first sea view HDB in the East a long while.

For more information, go to this link.