1 January 2017- 30 June 2017

Pensioner Duty Concession

Description

The Pensioner Duty Concession Scheme (PDCS) assists eligible pensioners, who own a residential home, to move to accommodation more suited to their needs (e.g. from a house to a townhouse) by reducing the duty payable on their new purchase of a residential home or residential vacant land.

The information below applies to transactions (a grant, transfer, or agreement for transfer, whichever occurs first) that occur between 1 January 2017 and 30 June 2017.  This is the date of first execution and not the settlement date. For further details see: Determination of eligibility and property value thresholds - DI2016-304 (external site).

A successful application under this scheme must comply with the following criteria:

  • at least one applicant must be an eligible pensioner;
  • the PDCS application must be lodged within the required time;
  • applicants must satisfy a property ownership test;
  • applicants must satisfy residency requirements; and
  • the total value of the property must be less than the upper property value threshold amount.

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.

Eligible pensioner

At least one owner of the property being purchased must be an eligible pensioner
At the date of the transaction, an eligible pensioner is a person in receipt of:

  • an Australian age pension (Centrelink or Department of Veterans’ Affairs equivalent) and who holds a pensioner concession card; or
  • a disability support pension and is 50 years of age or more and who holds a pensioner concession card; or
  • a Department of Veterans’ Affairs Gold Card for one year prior to the transaction.

To be eligible for the PDCS, ownership of the property being purchased must be in the same name or names as the property being sold.  The Commissioner may take into account anomalous or unusual circumstances.

An application for the Pensioner Duty Concession cannot have previously received the Over 60s Home Bonus, nor can they receive both the Pensioner Duty Concession and the Over 60s Home Bonus.

Current property ownership

Applicants (and their domestic partners) must not hold an interest in any other land at the date of the transaction, except the eligible property and the property from which they are moving, except if a person acquires their interest in land as an Executor or a Trustee under a will.

An eligible applicant will sell or have sold their residential property within 1 Year of completion of the eligible transfer or a longer period approved by the Commissioner for ACT Revenue.

The existing residence must be sold within 1 year of completion of the transfer of the eligible property (new purchase) or the date of the Certificate of Occupancy and Use following completion of construction of a residence on the eligible vacant block (new purchase).

Where an eligible applicant sells the existing residence prior to the purchase of the eligible property (new purchase), the sale must have occurred no more than one year before the completion of the transfer of the eligible property (new purchase) or the date of the Certificate of Occupancy and Use following completion of construction of a residence on the eligible vacant block (new purchase).

Residency requirements

At least one applicant must occupy the home 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 upper and lower value thresholds (from which the concessional rate of duty is calculated) for a residential home (eligible property) and residential land (eligible vacant block) are updated every six months (usually 1 January and 1 July), to ensure that they remain current.

Eligible property (residential home)

Dutiable valueConcessional duty payable
$661,000 or less$20 (minimum duty)
more than $661,000 but less than $860,000$16.60 for each $100 or part thereof by which the dutiable value exceeds $661,000 ($20 minimum duty).
$860,000 or moreNo concession

Eligible vacant block (land)

Dutiable valueConcessional duty payable
$351,300 or less$20 (minimum duty)
more than $351,300 but less than $417,500$15.30 for each $100 or part thereof by which the dutiable value exceeds $351,300 ($20 minimum duty).
$417,500 or moreNo concession

Making an application

For transactions between 1 January 2017 and 30 June 2017 use the Pensioner Duty Concession Scheme Application Form [RTF, 312Kb], [PDF, 215Kb].

Information about the eligibility criteria applicable to grants, transfers or agreements for other time periods is available at Pensioner duty concession.

Relevant links