Invest 101, Life Stages / Personal Finance

Singapore Budget 2025: 5 Major Announcements That Will Benefit The Average Singaporean

Posted on

19/02/2025

by

moneysmartgirl

In a 100-minute speech, Prime Minister and Minister of Finance Mr. Lawrence Wong unveiled a series of key announcements for Singapore Budget 2025.

The updates came in rapid succession, so much so that our writer could barely keep up with our Live Update Singapore Budget 2025 coverage.

With so much to unpack, where do we begin?

#1 The Usual (CDC Vouchers, U-Save Rebates)

In the past few years, CDC Vouchers have become a staple for the annual Singapore Budget in recent years with the main question being how much households will receive each year.

For this year’s budget, we weren’t disappointed.

Singaporean households will receive $800 in CDC Vouchers—$500 in May 2025 and another $300 in January 2026—to help offset the cost of living. This is in addition to the $300 distributed in January 2025, which was announced in Budget 2024.

Additionally, U-Save rebates for HDB households will be doubled in 2025, providing up to $760 in savings. HDB households will also receive S&CC rebates ranging from 1.5 to 3.5 months.

Not mentioned during the Budget speech but just as crucial is that there will also be a GST Voucher – Cash of $450 or $850 for lower- and middle-income Singaporeans.

#2 LifeSG Credits For Each Child 12 and below (+ Edusave top-ups)

In the coming months and years, LifeSG credits are set to become as widespread as CDC Vouchers are today.

Many NS personnel in Singapore are already familiar with LifeSG credits, as they are essentially the same NS LifeSG credits issued by MINDEF for initiatives like the NS Celebratory Gifts (for milestones such as marriage or the birth of a child) or the NS Service Excellence Award (for outstanding performance during ICT).

Going forward, LifeSG credits will no longer be exclusive to NS-related benefits—they will be available for broader use.

To start, families will receive $500 in LifeSG credits for each child aged 12 and below. For instance, a family with three eligible children will receive $1,500 in LifeSG credits for 2025, with the potential for additional support (more details to come).

For those unfamiliar or needing a refresher, LifeSG credits can be accessed via the LifeSG app and can be used at online and physical merchants that accept PayNow UEN QR or NETS QR payments.

Children between 13 and 30 will receive $500 in Edusave top-ups.

#3 Financial Support For Lower Income Families

Beyond ComLink+, a significant initiative introduced in Singapore Budget 2024 to support lower-income and vulnerable families, this year’s budget focuses on providing additional assistance to lower-income households.

One key announcement is the enhancement of the Fresh Start Housing Scheme, which aims to help second-timer households living in public rental flats transition into homeownership. Under the revised scheme, eligible families can now receive a $75,000 grant—an increase from the current $50,000—to purchase a new Standard 2-room Flexi or Standard 3-room flat on a shorter lease.

Additionally, the scheme will be expanded beyond second-timer households. First-timer families with children who are currently living in public rental flats will now also be eligible to purchase shorter-lease subsidised flats through Fresh Start, providing them with greater housing stability.

Beyond housing, the Budget also addresses childcare affordability. Monthly full-day childcare fee caps in Government-supported preschools will be lowered, with fees capped at $610 for Anchor Operator centres (down from $640) and $650 for Partner Operator centres (down from $680).

#4 Introducing The Large Families Scheme

Large families in Singapore—defined as those with three or more children—will now receive additional support through the Large Families Scheme. This initiative introduces three key benefits to ease the financial burden of raising multiple children.

Firstly, for families with a third child or beyond, the Child Development Account (CDA) First Step Grant will be doubled from $5,000 to $10,000, providing greater financial support for early childhood expenses.

Secondly, a new Large Family MediSave Grant (LFMG) will be introduced, with $5,000 credited directly to the mother’s MediSave account. This helps cover healthcare costs for both mothers and their children.

Lastly, families with third and subsequent children aged 6 and below will receive $1,000 in LifeSG credits per child annually. For instance, a family with four children, including two under the age of six, will receive $2,000 in LifeSG credits each year.

With these enhanced benefits, the government is making a concerted effort to encourage larger families, particularly in light of Singapore’s declining birth rate, which stood at 0.97 in 2023.

#5 GE/2025 SG60 Package

The best was saved for the last.

It’s been 60 years since our independence as a nation and to recognise the contributions of all Singaporeans aged 21 and above, there will be a special SG60 package.

As part of this milestone celebration, all Singaporeans will receive $600 in SG60 vouchers. These are pretty much CDC vouchers but with a celebratory name. Seniors aged 60 and above will receive an additional $200, bringing their total to $800.

There is more good news for those who pay income tax. A 60% Personal Income Tax Rebate, capped at $200, will be introduced for the Year of Assessment 2025.

Families welcoming a newborn can also look forward to the SG60 Baby Gift, though details on its contents or value will only be announced by early March.

To encourage greater engagement in the arts and culture scene, Singapore citizens aged 18 and above will receive a $100 SG Culture Pass, which can be used for cultural activities and events. A one-off $100 SG60 ActiveSG Credit top-up will be given to all Singaporeans and PRs, promoting active and healthy lifestyles.