The government has increased the maximum value of properties chargeable to $100 stamp duty to $4 million, effective from February 26, 2025, to ease the burden on property buyers. The change is expected to benefit around 15% of property transactions and reduce government revenue by $400 million annually.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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The Government has published the Public Revenue Protection (Stamp Duty) Order 2025 (the Order) in the Gazette, effective from February 26, 2025. This Order will give legal force to the Stamp Duty (Amendment) Bill 2025 (the Bill), which will be introduced into the Legislative Council on March 19, 2025, following its publication in the Gazette on February 28, 2025.
The 2025-26 Budget has announced adjustments to the value bands of the Ad Valorem Stamp Duty ("AVD"). Effective February 26, 2025, the maximum value of properties subject to $100 stamp duty will increase from $3 million to $4 million. This measure aims to reduce the financial burden on buyers of residential and non-residential properties at lower values.
The AVD is applicable to property sales, purchases, or transfers, based on the higher of the sales price or value of consideration. The lowest AVD rate is $100, which currently applies to properties valued at $3 million or below. The adjustment will result in a $100 AVD for properties valued up to $4 million. Estimates suggest that about 15% of property transactions will benefit from this change. Consequently, government revenue is expected to decrease by approximately $400 million annually.
The new value bands are outlined in the Annex to the Order. These changes apply to instruments executed on or after February 26, 2025.
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