About deferred duty
Deferred duty is an option offered by the ACT Revenue Office where you choose to delay the payment of conveyance duty (stamp duty) – a tax you pay when you buy a property.
If you are eligible for one of the following schemes, you may have the option to defer payment of conveyance duty:
How deferred duty works
If you choose to defer your conveyance duty, you need to:
- make your first payment towards what you owe within 5 years from the date the conveyance duty becomes payable
- pay the total conveyance duty, plus interest, within 10 years from the Registration date*.
*The Registration date is the date when the date you are registered on the Land Titles registry as the owner of the property.
Interest
Interest accrues on the deferred duty from the date the duty becomes payable, until you pay it in full.
Simple interest, which is calculated daily at the market rate, accrues on the principal balance of the deferred duty – not on any accrued interest. This means payments are credited towards tax amounts owing first. Find out more about interest and penalty tax.
Starting your payments earlier will reduce interest charges. If you want to start making payments earlier, payment details are provided in the welcome letter sent when you’re approved for deferred duty. Alternatively, you can contact us to arrange this.
Paying deferred duty
We have a direct debit arrangement for paying deferred duty. It is important that you understand the terms and conditions of this arrangement before you claim.
Find out more about paying your deferred duty
When to claim
You must claim to defer your duty at the same time as you complete a Buyer Verification Declaration (BVD) form for your property purchase. Selecting the option to defer your duty and entering the concession code is all you need to do to notify us.
After you’ve received your conveyance duty assessment, we may contact you to verify your eligibility for the duty deferral.
If your claim for deferred duty is approved, we will send you a welcome letter. It will provide information about the arrangement and explain how to make payments.
You cannot apply for a duty deferral after you have submitted a BVD form, and your property transfer is registered on the ACT Land Titles Register. Once this happens, you will receive your duty notice of assessment and payment will be due 14 days from this notice.
Find out more about deferring duty under the following schemes.
Deferring duty under the Home Buyer Concession Scheme
You can choose to defer the payment of conveyance duty on the purchase of your property if:
- You are eligible for the Home Buyer Concession Scheme (HBC).
- Your property value is above the HBC threshold.
- There is at least $1,000 remaining duty to be paid, after the HBC is applied.
To defer any remaining conveyance duty under the HBC, you must meet the eligibility criteria for the scheme.
Find out more about the Home Buyer Concession Scheme
Deferring duty under the Pensioner Duty Concession Scheme
You can choose to defer payment of conveyance duty on the purchase of your property if:
- You are eligible for the Pensioner Duty Concession Scheme (PDC).
- Your property value is above the PDC threshold.
- There is at least $1,000 remaining duty to be paid, after the PDC is applied.
Find out more about the Pensioner Duty Concession Scheme
Deferring duty under the Pensioner Duty Deferral Scheme
For transaction dates from 1 July 2019, the Pensioner Duty Deferral Scheme provides the option to defer the full payment of conveyance duty. This scheme is separate from the Pensioner Duty Concession Scheme. It does not provide a concession on the amount payable but simply allows you to defer your payment. Conditions apply.
Find out more about the Pensioner Duty Deferral Scheme
Deferring duty under the First Home Owner Grant requirements
This option is only available if you do not meet the eligibility requirements under any other schemes explained on this page. It has a very limited function as First Home Owner Grant payments ceased in the ACT on 1 July 2019. Conditions apply.
Find out more about the First Home Owner Grant