Pensioner duty concession scheme

The Pensioner Duty Concession Scheme (PDCS) is an ACT Government initiative that helps eligible pensioners who own a residential home move to another home that better suits their needs – for example, moving from a house to a townhouse. The scheme reduces the conveyance duty they owe on their purchase of a home or residential vacant land. The ACT Revenue Office oversees the scheme.

Transaction date

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).

Changes from 18 September 2017

The ACT Government has introduced the Barrier Free model for duty as part of its tax reform. The following changes to the PDCS affect transactions dated 18 September 2017 to 30 June 2018:

Changes from 7 June 2017

For transactions dated 7 June 2017 or later, an exception will apply to the property requirements where 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.

Eligible transactions – homes or vacant land

The PDCS applies to the purchase of an eligible home (including a new or established home) or a block of vacant residential land where the transaction date occurs by 30 June 2018.

An ‘off the plan’ purchase agreement, where a home is built on the land before settlement of the agreement, is also eligible for the PDCS if entered into by 30 June 2018.

Vacant land means land without a home or other dwelling built on it.

Eligibility

To claim the PDCS, you need to meet the following requirements:

Eligible pensioner

You are an eligible pensioner if, on the transaction date:

Do you receive an Australian Centrelink age pension or Department of Veterans Affairs age pension equivalent?

Thresholds

We update the upper and lower property value thresholds for residential homes and residential land every three years and calculate the concessional duty based on these thresholds.

Tables 1 and 2 show the property value and payable concessional duty for eligible homes and vacant blocks of land, respectively; the duty you owe depends on the date you entered into the transaction to buy the home.

Table 1 – Concessional duty for an eligible home
Date range
Property value
Duty payable

18 September 2017 to 30 June 2018

$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 (no minimum duty)

$895,000 or more

No concession

7 June 2017 to 17 September 2017

$680,500 or less

$20 (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 minimum duty)

$895,000 or more

No concession

1 January 2017 to 6 June 2017

$661,000 or less

$20 (minimum duty)

More than $661,000 but less than $860,000

$16.60 for each $100 (or part of $100) that the property value is more than $661,000 ($20 minimum duty)

$860,000 or more

No concession

8 June 2016 to 31 December 2016

$660,000 or less

$20 (minimum duty)

More than $660,000 but less than $865,000

$16.30 for each $100 (or part of $100) that the property value is more than $660,000 ($20 minimum duty)

$865,000 or more

No concession

1 January 2016 to 7 June 2016

$627,500 or less

$20 (minimum duty)

More than $627,500 but less than $807,000

$17.15 for each $100 (or part of $100) that the property value is more than $627,500 ($20 minimum duty)

$807,000 or more

No concession

Table 2 – Concessional duty for vacant land

Date range

Property value

Payable duty

18 September 2017 to 30 June 2018

$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 (no minimum duty)

$434,500 or more

No concession

7 June 2017 to 17 September 2017

$361,700 or less

$20 (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 minimum duty)

$434,500 or more

No concession

1 January 2017 to 6 June 2017

$351,300 or less

$20 (minimum duty)

More than $351,300 but less than $417,500

$15.30 for each $100 (or part of $100) that the property value is more than $351,300 ($20 minimum duty)

$417,500 or more

No concession

8 June 2016 to 31 December 2016

$350,800 or less

$20 (minimum duty)

More than $350,800 but less than $419,900

$14.80 for each $100 (or part of $100 that the property value is more than $350,800 ($20 minimum duty)

$419,900 or more

No concession

1 January 2016 to 7 June 2016

$333,500 or less

$20 (minimum duty)

More than $335,500 but less than $391,700

$17.60 for each $100 (or part of $100) that the property value is more than $333,500 ($20 minimum duty)

$391,700 or more

No concession

1
2
The greater of purchase price or market value
enter an amount. e.g. 455000
Date of grant, transfer or agreement for transfer (whichever is first)
Are you applying for the Home Buyer Concession Scheme?
Are you applying for the Pensioner Duty Concession Scheme?
Duty payable
You could be eligible for
  • The Pensioner Duty Concession Scheme
  • Duty concession:
    Duty payable with concession
  • Home Buyer Concession Scheme
  • Duty concession:
    Duty payable with concession
This calculation is based on

    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 eligible home. 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 eligible new home.

    Also, to be eligible for the PDCS, the home you’re buying must be in the same name or names as the home you’re selling.

    Limited exemptions apply to these requirements. You may be required to lodge a written request for exemption with the Commissioner for ACT Revenue up to 18 months after settlement or completion of construction.

    Residency requirements

    At least one buyer must live in the home continuously for at least a year, beginning within one year of either the settlement date (for an eligible home) or the completion of the new home’s construction (for vacant land).

    The Commissioner for ACT Revenue can exempt you from the residence requirements, in full or in part, but only if:

    If you do not meet the residence requirements you will be liable to pay full, non-concessional 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’re not eligible for the PDCS if you’ve previously received the Over 60s Home Bonus, and you cannot receive both the PDCS and the Over 60s Home Bonus.

    How to claim – transactions from 18 September 2017

    From 18 September 2017, you do not need to fill out an application for the PDCS; you can self-assess your eligibility. You can find out your eligibility for the PDCS and the documents you need to keep at Find out if you’re eligible .

    If you’re eligible, you should claim the PDCS concession code on the transfer instrument you lodge for registration at Access Canberra.

    You do not need to give us any other documents at this time.

    If you do not claim the PDCS concession code on the transfer instrument, you can submit a late claim for the PDCS using the Late Application for Home Buyer Assistance SmartForm . 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 a 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.

    How to claim – transactions before 18 September 2017

    For transactions dated before 18 September 2017, you have a limited window to apply for the PDCS. The ACT Revenue Office has to receive your completed application by the date the duty must be paid, which is either:

    Everyone who will own the home must be part of the application, as well as the partner of any owner, even if the partner will not be an owner.

    Use the Lodgement of dutiable transactions executed prior to commencement of the Barrier Free Model (18 Sep 2017) to submit your PDCS application along with all the necessary supporting documents, at least 10 working days before you need approval. Incomplete applications will delay processing time.

    Late PDCS applications for transactions dated before 18 September 2017 can be submitted through the Late lodgement of applications for home buyer assistance schemes SmartForm.

    For more information about transactions dated before 18 September 2017, visit our Transactions before 18 September 2017 page.

    What happens next?

    The standard time for processing applications is 10 working days once you’ve supplied all the necessary documentation. Please allow 10 working days before checking on the status of your application.

    We’ll let you know the result of your application in writing.