Higher CPF Housing Grant, more childcare places to support families
Reuters file photo
SINGAPORE — To make Housing and Development Board (HDB) resale flats more affordable, the Government will increase the CPF Housing Grant for first-time applicants, said Finance Minister Heng Swee Keat in Parliament yesterday.
This was among the raft of measures — in areas such as housing and education — announced by Mr Heng in his Budget statement to provide additional support for families.
The CPF Housing Grant for resale flats will be increased to S$50,000, from S$30,000, for couples who buy four-room or smaller resale flats. Couples who buy five-room or bigger resale flats will see their grants go up from S$30,000 to S$40,000.
Put together with existing grants — such as the Proximity Housing Grant, where up to S$20,000 is given to couples who choose to live with or near their parents; as well as the Additional CPF Housing Grant, up to S$40,000 for lower and middle-income couples — the total amount of housing grants a couple receives when buying a resale flat can reach up to S$110,000. This measure is expected to cost the Government an additional S$110 million a year.
Mr Heng also told the House that the existing capacity of centre-based infant care — for children under the age of 18 months — would be increased to over 8,000 places by 2020, up from the current enrolment figure of 4,000.
This would complement the existing expansion of childcare places, which was increased by 40 per cent over the last five years to around 140,000 places now.
Separately, Mr Heng announced that the amount of annual bursaries for students in post-secondary education institutions would be expanded, while the income eligibility criteria for these bursaries would also be revised. The total bursaries will increase from around S$100 million to S$150 million.
The amount given to undergraduate students would be increased by up to S$400. Currently, bursaries for students studying in publicly-funded universities range from S$1,300 to S$3,600, depending on income level and bursary type.
Bursaries for diploma students are set to increase by up to S$350, with the current quantum range standing at S$750 to S$2,000.
Lastly, bursaries for ITE students will go up by up to S$200, with the current quantum range from S$300 to S$1,200.
Meanwhile, the Government will be granting a personal income tax rebate of 20 per cent of tax payable, which will be capped at S$500, for all tax residents for their income earned in 2016.
Costing the Government some S$385 million, Mr Heng said this would give households a reduction in tax bills this year.
CLARIFICATION: In an earlier version of this report, we appended a table that showed the amount of housing grants for a family with monthly household income of S$1,500 per person, to be S$80,000. The HDB has clarified that it should have been S$95,000, for a family with monthly household income of S$3,000 per person.
