Deferred duty
Who is eligible?
You can choose to defer the payment of conveyance duty on the purchase of your home if you are eligible for the First Home Owner Grant (FHOG), or the Home Buyer Concession Scheme (HBCS). The deferred duty amount must be at least $1,000 and a property value threshold also applies.
While the payment of the FHOG ceased on 1 July 2019, if you are otherwise eligible under FHOG criteria you will still be able to apply for a deferral of duty.
For purchases prior to 1 July 2019, a duty deferral is still available if you are eligible for the applicable HBCS and comply with the residence requirement under the HBCS.
On or after 1 July 2019, persons eligible for HBCS will not need duty deferral as there is no duty payable for properties eligible for duty deferral.
- From 1 July 2021, persons eligible for the HBCS will receive a full duty concession if their eligible property has a dutiable value of $1 million or less. Duty is payable if the eligible property is worth more than $1 million as indicated in the property thresholds below.
- For purchases from 1 July 2019 to 30 June 2021, persons eligible for the HBCS would receive a full duty concession for their purchases regardless of the value of the property.
In addition, from 1 July 2019, if you are eligible for the Pensioner Duty Concession Scheme you will be able to defer duty. Different rules will apply, click here for further information.
Property thresholds
To be eligible for deferred duty, your home’s value must be at or below property value threshold at the time of the transaction. The property value threshold has increased to $1,000,000 for transactions on or after 1 July 2022.
Date range | Property value threshold | Vacant land threshold* |
|---|---|---|
| On or after 1 July 2022 | $1,000,000 | $1,000,000 |
| From 1 July 2021 to 30 June 2022 | $1,000,000 (HBCS) $750,000 (FHOG) | $1,000,000 (HBCS) $750,000 (FHOG) |
| 1 July 2019 to 30 June 2021 | $750,000 | $750,000 |
| 7 June 2017 to 30 June 2019 | $607,000 | $329,500 |
| 1 January 2017 to 6 June 2017 | $590,000 | $323,300 |
* From 1 July 2019, there has vacant land and other property have been subject to a single property value threshold.
Payment of duty
If we approve your deferred duty, you are required to make your first payment within five years from the date the duty becomes payable. You must then pay the duty within the next five years so that you repay all of it, plus interest, no later than 10 years after the transaction date.
Payments must be made by direct debit, please click on the link below to complete a Direct Debit Application Form. Once a Direct Debit has been set up, you must pay the minimum duty instalment amount on or before the day the payment is due.
If you wish to commence making repayments earlier, please contact the ACT Revenue Office. You need to pay all the deferred duty and any interest before the property title can transfer to a new owner.
Interest charges
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.
If you don’t make these minimum instalments on time, it’s a tax default. As a result, you will immediately owe the full amount of deferred duty and any interest accrued. 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.
For further information see Interest and penalty tax.
How to claim?
If you are considering the deferred duty scheme, it is helpful to seek independent legal and financial advice before claiming.
You will need to reference the correct code number on the Buyer Verification Declaration before you lodge for registration at Access Canberra.
What happens next?
When you claim deferred duty, we’ll issue you a letter with information about your duty deferral arrangement and explain how to make repayments.
After you’ve received your assessment, we may contact you to verify your eligibility for the deferral.
How to claim transactions before 18 September 2017
If the conveyance process of your transaction was commenced before 18 September 2017 and you are yet to apply for deferred duty, please visit our Transactions before 18 September 2017 page for more information on lodging your application.