Pensioner duty assistance

Pensioner duty concession scheme deferral

From 1 July 2019, eligible pensioners who receive a partial duty concession may also be eligible to defer any remaining duty payable if they have at least 75 per cent equity in the property they purchase.

Eligibility

To claim the Pensioner Duty Concession Scheme (PDCS) deferral, you must be eligible for the PDCS. The following conditions of deferral will apply:

  • you and any other transferee must not have less than 75 per cent equity in the property at the time you apply for the duty deferral
  • Interest at the market rate will be charged and payable on the amount of deferred duty until it is paid in full.
  • The deferral period terminates on the transfer of the property for which you received the pensioner duty concession, such as when the property is transferred to another person, or when the interest held by the pensioner to the PDCS transaction is transferred.

While this does not prevent you from making payments earlier before the property is transferred , you will need to ensure that any unpaid deferred duty and accrued interest  is paid in full before any part of the property can be transferred to another.

If you do not make payment of any unpaid deferred duty and accrued interest at the time of transfer,  this is a tax default. When a tax default occurs, an additional interest rate of 8 per cent per year applies to the unpaid deferred duty and any interest. Penalty tax may also apply in certain circumstances. The Commissioner for ACT Revenue may also seek to recover any unpaid amounts.

How to claim

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

If you are considering deferring duty, you may wish to seek your own independent legal and financial advice before claiming .

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

You do not need to give us any other documents at the time of registration.

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.

Interest charges

Interest accrues on the deferred duty from the date the duty becomes payable as long as an amount of duty remains unpaid.  Simple interest, which is calculated daily, accrues on the principal balance of the deferred duty – not on any accrued interest. For further information on interest and penalty tax click here.

What happens next?

When you claim the PDCS deferral on a transfer, we’ll issue you a letter with information about your duty deferral arrangement and explain how to make repayments.

After you’ve received your assessment, we may contact you to verify your eligibility for the PDCS.

Payment of duty

If we approve your  claim for PDCS deferral, any unpaid deferred duty and accrued interest  must be paid by the PDCS transferee when:

  1. the property is transferred to another person;
  2. the interest in the property held by the PDCS transferee, is transferred to:
  • another PDCS transferee
  • an administrator or executor of the estate of the pensioner, including a transfer by transmission application
  • any other person.

With a deferred duty payment arrangement, you need to pay the duty and any interest before the property title can transfer to a new owner.

You must pay the minimum duty instalment on or before the day the payment is due. If you don’t, it’s a tax default. As a result, you will immediately owe the full amount of deferred duty and any interest accrued. When a tax default occurs, an interest rate of 8 per cent per year, in addition to the market interest rate, applies to the outstanding deferred duty amount. A penalty tax may also apply under certain circumstances. The Commissioner for ACT Revenue may also attempt to recover any overdue amount.