Budget 2024: Government raises annual value band property tax threshold
The lower threshold will be increased to $12,000.
Deputy Prime Minister Wong said the government will increase the annual value (AV) band property tax threshold in 2025.
From the current lower threshold for AV Bands at $8,000 and below for a 0% owner-occupier residential property tax, the threshold will be increased to $12,000.
The upper threshold with 32% property tax rates will be raised to $140,000 and above, from $100,000.
Wong said the two-step increase in the property tax rate in 2022 was meant as a wealth tax for all investment properties and higher-end segments of owner-occupied private properties.
However, the increase in market rents due to strong demand and supply constraints resulted in a sharp increase in AV bands.
Property taxes were originally expected to affect only the top 7% of owner-occupier residential properties, but those affected nearly doubled to 13%.
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