SG Bonus for Budget 2018 NOT using Annual Value of Home as criteria

It came as surprise to me when I read about Budget 2018. SG Bonus will be given out to Singaporeans aged 21 and above in 2018 as follows:

Singaporeans aged 21 years and above in 2018

Assessable Income* for YA2017

Up to $28,000 $28,001 to $100,000 Above $100,000
$300 $200 $100

*Note: Individuals who own more than one property are eligible for SG Bonus of $100

The criteria for getting this SG Bonus is now based on Assessable Income ONLY. The Annual Value of home is NOT used to decide on the amount to give to each eligible individuals.

When I refer to Budget 2011, the Growth Dividends were given out based on both Assessable Income AND Annual Value of Home. (See Table 3 taken from Budget 2011)

I do not know the government’s thinking behind this policy shift on sharing the fruits of development of Singapore in good years. The often used Annual Value of Home was always used in the past to give less to those who stay in higher value homes. This affected people who stayed in private homes but have low income for the year. Retirees with low assessable income and who stayed in private property fall into this category.

© Copyright 2018, Lim Kim Tong for Living Investment

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