Eligible impacted property asbestos buyback scheme

In 2015, the ACT Government announced the Eligible Impacted Property Buyback Concession Scheme under the Loose-fill Asbestos Insulation Eradication Scheme. The program enables the ACT Government to make an offer to purchase a property not affected by asbestos directly, but if purchased will facilitate the safe and efficient demolition of an asbestos affected property acquired under the Scheme.

If you’re eligible and you surrender your property under the voluntary Asbestos Eligible Impacted Property Buyback Program, you’re entitled to a duty concession when you buy another home in the ACT. The maximum value of the concession will be equal to the amount of duty that would have been payable on the purchase of the eligible impacted property.

The ACT Revenue Office oversees the scheme.

Eligibility

To be eligible for the Asbestos Eligible Impacted Property Buyback Scheme, you must meet the following criteria:

You will also be eligible if, on 19 November 2015, you didn’t own the eligible property but had already entered into a contract to buy it and you completed the contract after 19 November 2015.

Are you the owner of an impacted lease located in the ACT surrendered to the Territory?

Conditions

There’s one duty concession per household. You need to use the concession in one transaction to buy a property in the ACT.

You cannot divide the concession; we provide it to the registered owner of a property. If the property has more than one registered owner, you need the consent of all the other registered owners to use the concession.

You don’t have to use the duty concession on your next purchase of land in the ACT. If you’re planning to buy back your former impacted property, you may want to hold on to the concession to do that even if you buy a new home in the meantime.

You can’t use the concession to buy property outside the ACT.

Concession amount

We calculate the duty concession at the applicable rate as of 19 November 2015. The concession’s value will be equal to or less than the amount of duty you’d owe on the surrender sum – or, in the case of a unit, the purchase price – of the impacted property. 

We’ll calculate the duty due on the new property you’re buying at the rate on the date of purchase.

Example 1

You surrender your current home to the ACT Government for $600,000. The duty on a property of this value is $19,600. Now, say you want to buy a new property for $800,000; the duty on this home is $30,350. The concession applies to the lower duty amount: $19,600. To calculate the duty on the purchase of your new property, subtract the lower duty amount ($19,600) from the higher duty amount ($30,350) to see what you’ll pay in duty when you buy the new property ($10,750).

Example 2

You surrender your current home to the ACT Government for $700,000. The duty on a property of this value is $24,600. Now, say you want to buy a new property for $500,000; the duty on this home is $14,600. The concession applies to the lower duty amount: $14,600. You’ll pay no duty on the new property purchase, but you’ll need to lodge documents for the ACT Revenue Office to stamp, and you won’t receive a refund of the difference.

How it works

The Asbestos Eligible Impacted Property Buyback Program can work in one of three ways:

1. When you exchange on a new home before you exchange the contract for sale for your impacted home

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

If you want to exchange on a new property before you exchange the contract for sale for your impacted property, you can apply to the ACT Revenue Office to postpone your duty payment.

Once you exchange the contract for sale for the impacted property, we can calculate the concession amount. You can then apply the concession during the settlement process of your new property.

2. When you settle on a new home before you exchange the contract for sale for your impacted home

If you want to settle on a new property before you exchange the contract for sale for your impacted property, you need to pay duty at the normal rate.

We’ll then calculate your concession entitlement when you exchange the contract for sale on the impacted property, and we’ll send you a refund once you complete the sale to the ACT.

3. When you exchange or settle on a new home after you exchange the contract for sale for your impacted home

When you’ve exchanged the contract for sale for your impacted property, you can present the contract to our office, complete the application form to access the concession and apply it to your new property purchase.

If you subsequently fail to complete the sale of your impacted property to the ACT, you’ll have to pay back any concession to our office.

How to apply

To apply for the Asbestos Eligible Impacted Property Buyback Program, complete the Eligible Impacted Properties – Loose-fill Asbestos Insulation Eradication Buyback Concession Scheme Application Form.

Post the completed application, along with a copy of the dated and signed contract for sale for the eligible impacted property, to:

ACT Revenue Office
PO Box 293
Civic Square ACT 2608.

You have a limited window to apply for the program. The ACT Revenue Office has to receive your completed application by the date the duty must be paid:

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

Please allow five working days from when we receive your completed application for us to complete a reassessment. If you’re getting a refund, we’ll call you to ask whether you’d like us to post you the cheque directly or have your solicitor collect it when it’s ready.