10 smart ways to spend your GST Vouchers

Regardless of how much you spend, aim to spend it well.

Beginning this month, over 1.6 million Singaporeans are going to receive a letter to inform them of their eligible GST Vouchers and other Budget benefits. Are you one of them and looking to spend the cash vouchers into something smart?

Herein, we will try to outline some suggestions of how to best spend them. We asked Paul Ho, ‎founder of iCompareLoan.com to give us his ideas. According to Paul, the main aim of the GST Vouchers is to offset against GST cost. Hence, it is best that you do not treat this as a windfall and use this money sparingly for necessities , he said.

“I get particularly nervous whenever the government gives us money. If you noticed, whenever we get vouchers or rebates, next comes the price increases. A case in point is the Pioneer package only to be followed by Polyclinic fees increases,” added Paul.


For younger people, Paul advised to spend the cash vouchers on self-improvement and dating, middle age people spend wisely on groceries and seniors to spend on healthy lifestyle and vitamins. But, before presenting them in a slideshow, here are just a few facts you need to know.


How does one qualify for the GST vouchers?

The GST Vouchers will be given out in 3 components:
· Cash
· Medisave
· U-Save


GST Voucher – CASH

You will get between $150 to $300 dollars as long as you meet the following Criteria: -

Assessable Income for YA2014 up to $26,000
· Annual Value of Home as at 31 Dec 2014 (Up to $13,000) = $300.
· Annual Value of Home as at 31 Dec 2014 ($13,001 to $21,000) = $150.

The assessed annual value of $21,000 of homes would cover almost all the HDB units as well as some lower priced private properties according to Ministry of Finance.


GST Voucher – Senior Bonus

For older folks aged 55 to 64 with assessed income not exceeding $26,000: -

· Annual value of home as at 31 Dec 2014 (Up to $13,000) = $300.
· Annual value of home as at 31 Dec 2014 ($13,001 to $21,000) = $150.

For older folks aged 65 and above with assessed income not exceeding $26,000: -

· Annual value of home as at 31 Dec 2014 (Up to $13,000) = $600.
· Annual value of home as at 31 Dec 2014 ($13,001 to $21,000) = $150.


GST Voucher - Medisave

You must be a Singapore citizen residing in Singapore and be aged 65 and above in 2015. And the annual value of your home must not be above $21,000.
Annual Value of home as at 31 Dec 2014 – up to $13,000
· Age in 2015 – 65 to 74 = $250
· Age in 2015 – 75 to 84 = $350
· Age in 2015 – 85 and above = $450
Annual Value of home as at 31 Dec 2014 – between $13,000 to $21,000
· Age in 2015 – 65 to 74 = $150
· Age in 2015 – 75 to 84 = $250
· Age in 2015 – 85 and above = $350


How can you use these Medisave Topups?

There is almost no possibility for you to withdraw your GST Voucher – Medisave as many people who are eligible for these topups are lower income earners who likely do not meet CPF Minimum sum. Coupled with the complicated CPF withdrawal rules and Medisave Minimum Sum making withdrawal almost impossible.

You must be sick to use your Medisave. And we all know that medical care is exorbitant. A government hospital C-Class ward charges ~ $200 per day before subsidy. With 8 to 10 beds in a small room, you are talking about a $1600 to $2000 per room per night. Easily the price of a 3 to 4 star hotel’s luxury suite. This is how expensive public health care has become.


GST Voucher – U Save

Again, there is no money in this voucher except to offset the Utilies bill. These are given out 4 times a year.

When will I receive my GST Vouchers

You will receive your GST Voucher − Cash and/or Medisave in August each year that you qualify. If your household qualifies, you will receive your GST Voucher − U-Save in January, April, July and October each year.

What can you do with your GST Voucher – CASH?

Since we have already established that you will not get much money in the form of Cash. You will have to contend with just $150 to $300 if you meet the criteria and are below 55 years old.

If you are above 55 years old, you have an extra one-time senior bonus of between $150 to $600.