Eligible Impacted Properties - Loose-Fill Asbestos Buyback Concession Scheme

On 19 November 2015, the ACT Government announced the Eligible Impacted Property Buyback Program under the Loose-fill Asbestos Insulation Eradication Scheme (the Scheme). This Program enables the Territory to make an offer to purchase a property that is not an Affected Property but which the Territory seeks to purchase to facilitate the safe and efficient demolition of an affected property acquired under the Scheme.

Eligible impacted homeowners who surrender a property under the voluntary Eligible Impacted Property Buyback Program are entitled to a concession of duty on a purchase of a residential dwelling in the Territory. The value of the concession will be equal to or less than the amount of duty payable on the purchase price of the eligible impacted property.

See Determination 2016-4 for further details.

Eligibility For Concession

The general eligibility criteria for the Buyback Concession Scheme are as follows:

  • the applicant must be the legal title holder of an eligible impacted property on 19 November 2015
  • the impacted property must have been determined to be an eligible impacted property under the Civil Law (Sale of Residential Property) Act 2003
  • the applicant must opt into the Eligible Impacted Property Buyback Program and sell the eligible impacted property to the Territory in order to access the concession.
  • the new property to
  • which the concession will be applied must be settled on or after the 19 November 2015.

A person will also be eligible if, on 19 November 2015, the person did not own the eligible impacted property but had already entered into a contract to purchase it and the contract was completed after 19 November 2015.

Conditions

There will be one duty concession per household. The concession must be used in one transaction on the purchase of a property in the ACT.

The concession cannot be divided. It is provided to the registered owner of a property.  If there is more than one registered owner, the applicant will need the consent of all other registered owners to utilise the concession.

The duty concession is not required to be used on the next purchase of land in the ACT.  If a person is planning to buy back their former eligible impacted property, then they may wish to retain the concession for that purpose even if they buy a new home in the meantime.

The concession is not able to be used for the purchase of a property located outside the ACT.

Calculating The Concession

The duty concession will be calculated at the applicable rate as at 19 November 2015.
The value of the concession will be equal to or less than the amount of duty payable on the surrender sum (or in the case of a unit—the purchase price) of the eligible impacted property.
The duty due on the new property being purchased will be calculated at the rate that is applicable at the date of purchase.

Example1

  • Current home surrendered to the ACT Government for $600,000 – the duty on a property of this value is $20,800
  • New property purchase is $800,000 – duty due $31,550
  • Concession is for the lower amount of duty – $20,800
  • Homeowner will pay $31,550 - $20,800 = $10,750 on the purchase of the new property.

How It Works

The Eligible Impacted Property Buyback Concession Scheme will be administered by the ACT Revenue Office.

Eligible impacted property owners will need to complete the application form found here: Eligible Impacted Properties - Loose-fill Asbestos Insulation Eradication Buyback Concession Scheme Application Form [RTF, 323Kb], [PDF, 439Kb].  The application form and a copy of the dated and signed Contract for Sale of the eligible impacted property will need to be provided to access the concession. The ACT Revenue Office may require additional information to prove eligibility and process the application.

Please allow five working days from receipt of the completed application by the ACT Revenue Office for a reassessment to be completed. If a refund cheque is being issued, the ACT Revenue Office will call you to ask whether you would like the cheque to be collected by your solicitor or posted to you directly when it is ready.

1.  Exchange on a new home BEFORE exchange of Contract for Sale for the impacted home.

Duty is payable 90 days after exchange of the contract for sale.

Impacted homeowners who wish to exchange on a new property prior to exchange of Contract for Sale for their eligible impacted property may apply to the ACT Revenue Office to postpone the payment of their duty.

Once the exchange of the Contract for Sale has occurred for the eligible impacted property the concession amount can be calculated. This concession can then be applied during the settlement process of the new property.

2. Settlement of a new home BEFORE exchange of Contract for Sale for the impacted home.

Eligible impacted homeowners who wish to settle on a new property prior to exchange of the Contract for Sale for their eligible impacted property will need to pay duty at the normal rate.

The concession entitlement will then be calculated when the Contract for Sale is exchanged on the eligible impacted property and a refund will be provided by the ACT Revenue Office following completion of the sale of the eligible impacted property to the Territory.

3.  Exchange or settlement on a new home AFTER exchange of Contract for Sale for the impacted home.

When there has been an exchange of the Contract for Sale for the eligible impacted property, homeowners may present the exchanged Contract to the ACT Revenue Office and complete the application form to access the concession and have it applied to their new property purchase.

The ACT Revenue Office may require additional information to process the application.

If the eligible impacted homeowner subsequently fails to complete the sale of the eligible impacted property to the Territory, any concession will be repayable to the ACT Revenue Office.

Relevant Links

Eligible Impacted Properties - Loose-fill Asbestos Insulation Eradication Buyback Concession Scheme Application Form [RTF, 323Kb] , [PDF, 439Kb]

Disallowable Instrument 2016-4

ACT Government Asbestos Taskforce

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