If you and your property are eligible, you can choose to defer payment of duty on the property.
An eligible person for deferred duty is someone’s who eligible for either the First Home Owner Grant (FHOG) or the Home Buyer Concession Scheme (HBCS). An eligible property is one that has a price at or below the relevant HBCS property threshold.
To be eligible for the deferred duty scheme:
- everyone named in the grant, transfer or agreement for transfer of the property – and, in some cases, their non applicant domestic partner – must satisfy the relevant eligibility criteria for either the FHOG or the HBCS
- the property (including vacant land) must have a price at or below the upper property threshold under the relevant HBCS
- the duty deferred must be $1,000 or more
- If applying for deferred duty on the purchase of an established property through the FHOG scheme, applicants and their domestic partner must meet all eligibility criteria for the FHOG (unless the property is new or substantially renovated). Please refer to the FHOG page or the Deferral of Duty lodgement guide and application form for further information regarding FHOG eligibility.
If you’re an eligible home buyer and your duty amount decreased under the HBCS, as long as the remaining duty is at least $1,000, you can defer paying that duty under the deferred duty scheme.
If we approve you for deferred duty, you must satisfy the residency requirements of the FHOG or HBCS. At least one applicant must occupy the home as their principal residence for a continuous period of 12 months, starting within one year of completion of the eligible transaction or issue of the Certificate of Occupancy.
If you have any questions concerning your eligibility contact us.
Payment of duty
If we approve your application for deferred duty, you have two payment options:
- You can start payment instalments immediately – that is, within 90 days, or within one year for an off-the-plan purchase, from the date of the eligible transaction – to repay the total duty plus interest within 10 years. You can also make a voluntary repayment over and above your instalment amount at any time.
- You can defer making payments for up to five years from the date of the eligible transaction. However, you can still make a voluntary repayment exceeding your instalment amount at any time. You must then pay the duty in full within the next five years so that you repay all of it, plus interest, no later than 10 years after the transaction date.
With a deferred duty payment arrangement, you need to pay the duty and any interest before the property title can transfer to a new owner.
You must pay the minimum duty instalment on or before the day the payment is due. If you don’t, it’s a tax default. As a result, you will immediately owe the full amount of deferred duty and any interest accrued. When a tax default occurs, an interest rate of 8 per cent per year, in addition to the market interest rate, applies to the outstanding deferred duty amount. A penalty tax may also apply under certain circumstances. The Commissioner for ACT Revenue may also attempt to recover any overdue amount.
If we approve you for deferred duty, you must pay it and any interest by direct debit. You need to provide our office with a completed Direct Debit Request form within 14 days before the first installment’s due date.
Interest accrues on the deferred duty from the date the duty becomes payable until you pay it in full. Simple interest, which is calculated daily, accrues on the principal balance of the deferred duty – not on any accrued interest.
How to apply
If you’re considering the deferred duty scheme, it’s a good idea to seek independent legal and financial advice before applying.
There’s a limited application period for deferred duty. The ACT Revenue Office must receive your completed application by the date the duty must be paid, that is:
- within 90 days of the grant, transfer or agreement (whichever comes first); or
- for an off-the-plan agreement, within 14 days of whichever comes first – the agreement is completed, the purchaser transfers interest under the agreement, it’s been a year since the date of the agreement, or a certificate of occupancy has been issued.
Post your application to:
ACT Revenue Office
PO BOX 293
Civic Square ACT 2608.
To enable us to efficiently process your application, please submit your application, along with all the necessary supporting documents, at least 10 working days before you need approval. Incomplete applications will delay processing time.
What happens next?
Please allow 10 working days before checking on the status of your application, if we approve your application, we’ll notify you in writing.