The Pensioner Duty Concession Scheme (PDCS) assists eligible pensioners who own a residential home, to move to accommodation more suited to their needs – for example, moving from a house to a townhouse by reducing the conveyance duty payable on their purchase of a residential home or residential vacant land.
On or after 1 July 2020, eligible pensioners acquiring a property as a principal place of residence (including PDCS applicants) can defer payment of conveyance duty under the pensioner duty deferral scheme.
Eligibility
Pensioners who purchase a home (includes a new or established home) or a block of vacant residential land may be eligible for the PDCS. Pensioners may also be eligible for homes purchased ‘off the plan’ (where a home is built on the land before settlement of the agreement) if they enter into an agreement for the sale or transfer of the home.
To claim the PDCS, you need to meet the following requirements:
- The home's total value must be less than the upper property threshold value.
- At least one buyer of the home must be an eligible pensioner.
- All buyers and their partners (if any) satisfy a home ownership test (a partner includes your spouse, civil union partner, civil partner or de facto partner).
- At least one buyer must satisfy the residency requirements.
- The former property must be sold within 1 year before or after the registration date.
An exception to the property requirement applies when a relationship has ended and one of the former partners relinquishes their interest in the former home under a court order or binding agreement. The former partner will be eligible for the PDCS for a home purchased in their name only.
Please note these orders or agreements must be made before the transaction date.
Eligible pensioner
You are an eligible pensioner if, on the transaction date:
- you receive an Australian age pension from Services Australia or the Department of Veterans’ Affairs
- you receive a disability support pension from Services Australia and are at least 50 years old, or
- you have held a Veteran Gold Card for at least one year before the transaction.
For transactions entered between 1 July 2019 and 30 June 2020, eligible pensioner who receive a partial duty concession may also be eligible to defer any remaining duty payable if they have at least 75 per cent equity in the property they purchase.
Thresholds
The PDCS applies at different levels depending on the transaction date, which is the date of grant, transfer, or agreement for transfer (whichever is first – not the settlement date). We calculate the concessional duty based on the thresholds below for transactions between:
Property value | Duty payable |
|---|---|
Less than or equal to $550,000 | $0 |
More than $550,000 but less than $765,000 | $9.55 for every $100, or part of $100, by which the dutiable value exceeds $550,000 |
$765,000 or more | No concession |
Land value | Duty payable |
|---|---|
Less than or equal to $423,000 | $0 |
More than $423,000 but less than $500,000 | $11.60 for every $100, or part of $100, by which the dutiable value exceeds $423,000 |
$500,000 or more | No concession |
Property value | Duty payable |
|---|---|
Less than or equal to $550,000 | $0 |
More than $550,000 but less than $765,000 | $9.70 for every $100, or part of $100, by which the dutiable value exceeds $550,000 |
$765,000 or more | No concession |
Land value | Duty payable |
|---|---|
Less than or equal to $373,000 | $0 |
More than $373,000 but less than $450,000 | $9.75 for every $100, or part of $100, by which the dutiable value exceeds $373,000 |
$450,000 or more | No concession |
| Property value | Duty payable |
|---|---|
$490,000 or less | $0 |
More than $490,000 but less than $642,000 | $10.85 for every $100, or part of $100, by which the dutiable value exceeds $490,000 |
$642,000 or more | No concession |
| Land value | Duty payable |
|---|---|
$360,000 or less | $0 |
More than $360,000 but less than $432,000 | $11.15 for every $100, or part of $100, by which the dutiable value exceeds $360,000 |
$432,000 or more | No concession |
| Property value | Duty payable |
|---|---|
$440,000 or less | $0 |
More than $440,000 but less than $570,000 | $11.05 for every $100, or part of $100, by which the dutiable value exceeds $440,000 |
$570,000 or more | No concession |
| Land value | Duty payable |
|---|---|
$278,650 or less | $0 |
More than $278,650 but less than $390,000 | $6.85 for every $100, or part of $100, by which the dutiable value exceeds $278,650 |
$390,000 or more | No concession |
| Property value | Duty payable |
|---|---|
$420,000 or less | $0 |
More than $420,000 but less than $530,000 | $11.55 for every $100, or part of $100, by which the dutiable value exceeds $420,000 |
$530,000 or more | No concession |
| Land value | Duty payable |
|---|---|
$277,200 or less | $0 |
More than $277,200 but less than $385,000 | $6.95 for every $100, or part of $100, by which the dutiable value exceeds $277,200 |
$385,000 or more | No concession |
| Property value | Duty payable |
|---|---|
$680,500 or less | $0 |
More than $680,500 but less than $895,000 | $15.05 for every $100, or part of $100, by which the dutiable value exceeds $680,500 |
$895,000 or more | No concession |
| Land value | Duty payable |
|---|---|
$361,700 or less | $0 |
More than $361,700 but less than $434,500 | $13.35 for every $100, or part of $100, by which the dutiable value exceeds $361,700 |
$434,500 or more | No concession |
| Property value | Duty payable |
|---|---|
$680,500 or less | $0 |
More than $680,500 but less than $895,000 | $15.75 for every $100, or part of $100, by which the dutiable value exceeds $680,500 |
$895,000 or more | No concession |
| Land value | Duty payable |
|---|---|
$361,700 or less | $0 |
More than $361,700 but less than $434,500 | $14.15 for every $100, or part of $100, by which the dutiable value exceeds $361,700 |
$434,500 or more | No concession |
| Property value | Duty payable |
|---|---|
$680,500 or less | $20.00 minimum duty |
More than $680,500 but less than $895,000 | $15.75 for every $100, or part of $100, by which the dutiable value exceeds $680,500 ($20.00 minimum duty) |
$895,000 or more | No concession |
| Land value | Duty payable |
|---|---|
$361,700 or less | $20.00 minimum duty |
More than $361,700 but less than $434,500 | $14.15 for every $100, or part of $100, by which the dutiable value exceeds $361,700 ($20.00 minimum duty) |
$434,500 or more | No concession |
Home ownership
You must be the owner of an existing home in Australia (your old home) to be eligible for the PDCS. You cannot own any other land or property at the transaction date other than the old home you’re moving out of and the new home you acquire under the PDCS. An exception applies if you acquire a property as an executor or trustee under a will.
You must sell your existing home when you buy the new home.
- If you sell your existing home first, the sale cannot take place more than a year before the registration of the new home in your name at Access Canberra.
- If you buy the new home first, you have a year after registration of the new home to sell the existing home.
Also, to be eligible for the PDCS, the new home you’re buying must be in the same name or names as the home you’re selling.
Residency requirements
At least one buyer must live in the home continuously for at least a year. They must commence residence within one year of either the settlement date (for an eligible home) or the date that a certificate of occupancy has been issued (for vacant land).
The Commissioner for ACT Revenue can exempt you from the residency requirements, in full or in part, but only if:
- you cannot live in the home as your principal place of residence from the residence start date for at least 1 year because of an unforeseen circumstance, such as a health-related issue; and
- you request an exemption in writing no later than 18 months after:
- the settlement date (for an eligible home); or
- the date you receive the Certificate of Occupancy and Use once construction of the new home is finished (for vacant land).
If you do not meet the residency requirements you will be liable to pay full conveyance duty in relation to the transaction unless an exemption is granted. Penalty tax or interest may also apply if the requirements are not met.
If you have any concerns about your residency, you should contact us as early as possible.
Previous concessions
You are not eligible for the PDCS if you’ve previously received the Over 60s Home Bonus. You cannot receive both the PDCS and the Over 60s Home Bonus.
How to claim
You do not need to fill out an application for the PDCS; you can self-assess your eligibility.
If you’re eligible, you should claim the PDCS by entering the concession code number on the Buyer Verification Declaration before you lodge for registration at Access Canberra.
You do not need to give us any other documents currently.
If you do not claim the PDCS concession at the time of registration, you can submit a late claim for the PDCS using the Application for concession, exemption or correction of duty after title registration form. When we receive your claim, we will issue you a notice of reassessment with the concession applied.
What happens next?
When you claim the PDCS on the Buyer Verification Declaration and register your Transfer, we’ll issue you a Notice of Assessment for duty with the concession applied. This will reduce the amount of duty you have to pay based on the value of the home. You have 14 days to pay any remaining amount.
If the Notice of Assessment has a nil balance, you do not have to take further action.
After you’ve received your assessment, we may contact you to verify your eligibility for the concession. For example, we may require you to give us copies of any documents that support your eligibility, or we may ask you to prove your residency at the home. You need to keep copies of your supporting documents for at least five years after the transaction.
We review claims and conduct investigations into the PDCS on an ongoing basis.
Reference Material
Further information on the PDCS can be located using the information below:
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2023 (No 2) DI2023-287
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2023 DI2023-165.
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2022 DI2022-158.
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2021 DI2021-174.
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2020 DI2020-178.
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2019 (No 1) DI2019-101.
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2018 (No 1) DI2018-118.
- Taxation Administration (Amounts Payable—Pensioner Duty Concession Scheme) Determination 2017 (No 2) DI2017-227.