Pensioner rebate income bracket could increase

More pensioners will be targeted for rebates on their residential properties with the proposed increased pensioner rebate income bracket. The bracket is proposed in the draft property rates policy to increase by 6.2 per cent.

The City’s group finance spokesperson, Kgamanyane Maphologela, explained that increasing the income bracket means more pensioners would qualify to receive a rebate.

“The City was responding to calls from senior citizens who are not coping with the current economic hardships and were appealing to the City for some relief on their property rates.

“When the City consults property owners across all regions every year, one of the consistent appeals we receive is from pensioners, who have worked so hard over the years and have invested in their homes. Now, because they no longer work and have retired, are pleading with the City to intervene and lessen the burden of the rising costs,” Maphologela said.

There are currently more than 30 000 pensioners who receive property rebates on their residential homes from the City. These pensioners are either exempted altogether from paying rates or receive a certain percentage of the rebate, based on their qualifying criteria.

The new property rates policy, including a 6.2 per cent increase, was approved by council and the City is inviting residents to comment on the draft version before 7 May. The policy will kick in on 1 July, along with the new budget.

The City has proposed rebates for various pensioner categories, including:

  • The first R200 000 of the value of all residential property is exempt from rating
  • A 100 per cent rebate for pensioner owners whose gross monthly household income is lower than R8 745 and with property value not more than R2 million
  • A 50 per cent rebate for pensioner owners whose gross monthly income is higher than R8 234 but lower than R14 991, in a property value not more than R2 million
  • Pensioners who are 70 years and older who own a house worth R2 million or less receive a 100 per cent rebate
  • Pensioners on the City’s Expanded Social Package who reside in a property, not more than R2 million are entitled to a 100 per cent rebate
  • People who are not pensioners but are on the City’s Expanded Social Package, with the value of their homes not exceeding R450 00 can qualify for a 100 per cent rebate
  • Properties owned by organisations in terms of the Housing Development Schemes For Retired Persons Act qualify for a 50 per cent rebate
  • People who are on a pension because of disability whose gross monthly income is lower than R8 736 and their property value not exceeding R2 million, qualify for a 100 per cent rebate
  • Child-headed households with property value not exceeding R2 million receive a 100 per cent rebate
  • The rebate for non-pensioners is granted based on the poverty index band they fall in.

Related articles:

Rates policy draft open for scrutiny

Who qualifies for rebates?

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  AUTHOR
Chantelle Fourie
Metro Reporter

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