Eligible impacted property asbestos buyback scheme

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

If you’re eligible and you surrender your home under the voluntary Eligible Impacted Property Buyback Program, you’re entitled to a conveyance 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.

You should apply for the Scheme before the title to your new home is registered at Access Canberra.

The ACT Revenue Office oversees the scheme.

Transaction date

The transaction date is the date of grant, transfer, or agreement for transfer of your new home (whichever is first – not the settlement date).

Barrier Free model

The ACT Government introduced the Barrier Free model for duty as part of its tax reform on 18 September 2017.

Scheme applications must now be made by SmartForm. However, the eligibility requirements of the Scheme have not changed.

Eligibility

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

You will also be eligible if, on 19 November 2015, you didn’t own the eligible home 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 home in the ACT.

You cannot divide the concession; we provide it to the registered owner of a home. If the home 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 home (the eligible 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 home 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 home. 

We’ll calculate the duty due on the new home 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 home of this value is $19,600. Now, say you want to buy a new home 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 home, 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 home ($10,750).

Example 2

You surrender your current home to the ACT Government for $700,000. The duty on a home of this value is $24,600. Now, say you want to buy a new home 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 home 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 to claim – transactions from 18 September 2017

Application

You can apply for the Scheme at any time but you should apply as early as possible to avoid delays.

To apply for the concession, complete the SmartForm and attach a scanned copy of the dated and signed contract for sale of your current home.

We may require additional information to prove eligibility and process the application. We cannot confirm the concession until you have completed your Application SmartForm and claimed the concession at Access Canberra.

When you register your new home at Access Canberra

For transactions dated on or after 18 September 2017 duty is usually payable within 14 days after your title to the new home is registered at Access Canberra.

When you lodge the title to your new home for registration at Access Canberra, you should claim the concession code for the Scheme on the transfer instrument.

If you need more time to pay duty for your new home before you exchange the deed of surrender for your affected home (or before you sell your unit) you can apply to us to postpone your duty payment.

Once you exchange the deed of surrender for the affected home, we can calculate the concession amount and apply it to your new home purchase in a Notice of Assessment.

If you fail to complete the surrender of your home, you’ll have to pay back any concession to us.

How to claim – transactions before 18 September 2017

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

Please use the SmartForm to submit your application along with all the necessary supporting documents.

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

We 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 how you would like to receive it.