Disability Duty Concession Scheme

Description

As part of the 2016-17 Budget, the ACT Government announced the Disability Duty Concession Scheme (DDCS). The DDCS provides a full exemption from conveyance duty for individuals who have a long‑term and permanent disability, and who wish to purchase a home to be used as their principal place of residence.

The DDCS encourages adults with disability to enter into long-term private accommodation arrangements, suitable for their needs and who may otherwise be reliant on long‑term government accommodation.  The DDCS is open to ACT residents who have qualified for an individual funding package under the National Disability Insurance Scheme (NDIS). Individuals with long term and permanent intellectual, physical, sensory or psychiatric disabilities that significantly reduce their level of function are NDIS participants.

No duty is payable by an eligible applicant under the DDCS if:

  1. the total and undivided dutiable value of the grant, transfer, or agreement for the transfer of the subject property, under section 20 of the Duties Act 1999, is not more than $750,000;
  2. under the grant, transfer, or agreement for the transfer, the eligible applicant acquires both a legal and equitable interest in at least 51 per cent of the subject property;
  3. the eligible applicant is a participant of the NDIS and in receipt of an individual funding package; and
  4. the eligible applicant complies with all other eligibility requirements of the DDCS.

For the purpose of the DDCS, it is irrelevant how the finance for the purchase property is obtained. It is however, a requirement that regardless of the funding arrangements, the person with disability must own at least 51 per cent of the property.

For further details see: Taxation Administration (Amounts Payable – Disability Duty Concession Scheme) Determination 2016 (No 1) DI2016-142

Eligible Requirement

An eligible applicant must be a participant of the NDIS and in receipt of an individual funding package.

NDIS means the Commonwealth’s National Disability Insurance Scheme, administered by the National Disability Insurance Authority, and established under the National Disability Insurance Scheme Act 2013 (Cwlth).

An application for the DDCS must not have previously received a concession under the following schemes:

  • Home Buyer Concession Scheme;
  • Pensioner Duty Concession; and
  • Over 60s Home Bonus Scheme.

Property ownership

The eligible applicant (and their domestic partner) must not have held a legal or an equitable interest in land, other than the subject property, in the 2 years preceding the date of the grant, transfer, or agreement for the transfer of the subject property (whichever is first).

This does not apply to an interest in land if the eligible applicant or eligible applicant’s domestic partner is required to relinquish the interest under:

  • an order of a court; or
  • a written financial agreement made under the Family Law Act 1975 (Cwlth),or
  • a written domestic relationship agreement or termination agreement under the Domestic Relationships Act 1994 as a result of the termination of a relationship between domestic partners; or
  • an agreement to purchase a property in the 2 years preceding the date of the grant, transfer, or agreement for the transfer of the subject property, which is subsequently rescinded -
    • under section 50 or 50A of the Act; or
    • under the relevant provisions of another jurisdiction.

Residency requirements

An individual who is eligible for the DDCS must live in the purchased property as their principal place of residence, for a continuous period of at least 1 year, beginning within 1 year of settlement or completion of construction of the new purchase.

The Commissioner for ACT Revenue may extend the time for an applicant to meet the residency requirements, approve a shorter residency period, or exempt an applicant from the residency requirements. The Commissioner’s discretion is: 

  • limited to situations where the applicant is unable to reside in the property because of a compulsory or unforeseen circumstance (e.g. health related issues); and
  • exercisable only where a written request to exercise the power is lodged with the Commissioner within 18 months of -
    • in relation to an eligible property - the date of the completion of the transfer of the subject property; or
    • in relation to an eligible vacant block - the date of the Certificate of Occupancy and Use following completion of construction of the residence on the subject property.

Property value threshold amount

The total dutiable value of the subject property must not exceed a maximum amount of $750,000. If the total dutiable value of the property being purchased exceeds $750,000 no exemption will be granted to the applicant.

Application processing time

The application period is limited; all applications must be received by the Access Canberra Dickson Shopfront on behalf of the Commissioner for ACT Revenue or mailed to PO Box 293 Civic Square ACT 2608 by the date the duty must be paid, that is within:

  • 90 days of the grant, transfer or agreement (whichever is first);  or
  • 14 days of the first occurrence of one of the events mentioned in Section 16A (1) of the Duties Act 1999, for an Off the Plan agreement.

To enable applications to be processed efficiently, please submit complete applications together with all supporting documents at least 10 working days before approval is required. Incomplete applications will delay processing time. Please allow 10 working days before checking on the status of your application. All applications accepted over the counter or mailed are subject to the same application processing time limits.

If an application is not received within the relevant timeframe, the Commissioner may accept the late application if it is considered fair and reasonable to do so.  Following acceptance of a late application, the Commissioner may reassess the duty liability in accordance with section 9 of the Taxation Administration Act 1999.

Making an application

Please complete and submit the following documents and forms for assessment of duty for the DDCS: