The government is doubling the GST credits that households will receive in 2009 to tide families through the current economic crisis.

This will cost the government $580 million in total with an immediate GST credit handout on March 1st. This is on top of GST credits already planned for in July.

There will also be a rebate of 20 per cent on personal income taxes, capped at $2,000. The cost for the rebates will total $457 million for FY2009.

Individual tax residents who have lost their jobs in 2008 or lose their jobs in 2009 will be able to pay their personal income taxes this year in instalments of up to 24 months, up from 12 months.

Housing benefits

The government will ensure that public housing remains affordable to first-time home buyers.

The Additional CPF Housing Grant (AHG) for first-time home-buyers will be increased and broadened, with the maximum AHG quantum raised from $30,000 to $40,000.

The household income ceiling will also be raised from $4,000 to $5,000

There will be additional one month of service conservancy rebates for one to three-room HDB flats totalling three to 4.5 months this year. Those in larger flats will receive a total of one to two months rebate.

A 40% property tax rebate for owner-occupied residential properties for 2009 will cost the Government $75 million.

According to Mr Tharman, most households will be receiving benefits that exceed what they would have gained if the Government had instead cut the GST by 2%.