Pensioner Duty Deferral Scheme
From 1 July 2020, the Pensioner Duty Deferral Scheme gives eligible pensioners who are buying a property the option to defer full payment of conveyance duty (stamp duty). This is if the new property will be your principal place of residence. The scheme does not provide a concession on the amount payable but simply allows you to defer your payment.
Eligible pensioners buying a property as a principal place of residence can also choose to defer payment of conveyance duty through the Pensioner Duty Concession Scheme. There must be at least $1,000 remaining duty to be paid, after the concession is applied. Find out more about the Pensioner Duty Concession Scheme.
Eligibility
To be eligible to claim this conveyance duty (stamp duty) deferral, you must meet the following:
- You, or at least one other buyer of the property, must be a pensioner.
- You, or at least one other buyer, must live in the property continuously for a minimum of one year. You need to start to reside in the home within one year of your settlement date (or issue of the certificate of occupancy for vacant land).
If you would like to claim the Pensioner Duty Deferral Scheme, here’s how you need to meet the requirements.
1. You, or at least one other buyer of the property, must be a pensioner
You are an eligible pensioner if at the time of the transaction date:
- you get an Australian age pension from Services Australia or the Department of Veterans’ Affairs (DVA), or
- you get a disability support pension from Services Australia and are at least 50 years old, or
- you have held a DVA Gold Card for at least one year* before the transaction.
*If you have held a DVA Gold card for less than one year before your property purchase transaction date, you will not be eligible unless you meet one of these other 2 options.
Transaction date
The transaction date is the date the agreement to purchase the home or land is made. This usually happens on the date when you sign and exchange contracts for your new property. Your transaction date is used to assess your eligibility for the Pensioner Duty Deferral Scheme.
2. You must live in the property continuously for a minimum of one year
The Pensioner Duty Deferral Scheme requirement states that once you buy your home, at least one buyer must live in it continuously for a minimum of one year.
This means you must start living in your new home as your principal place of residence, within one year of either:
- the settlement date (for a new or established home), or
- the date that a certificate of occupancy and use (COU) has been issued (for vacant land).
Principal place of residence
The term principal place of residence (PPR) means the one place of residence a person mainly lives in. A person can occupy more than one place at a time, however, only one property may be a person’s PPR. Find out more about principal place of residence (272 KB)
When claiming for the Pensioner Duty Deferral Scheme, you are agreeing to meet this residence requirement in advance. If you do not meet the residence requirement, you will be liable to pay full conveyance duty (stamp duty) in relation to the transaction. Penalty tax or interest may also apply if the requirements are not met. Read more about your obligations and responsibilities.
Residency exemptions
The Commissioner for ACT Revenue can reduce the residence period, in full or in part, or extend the time before you must start living in the property, but only if:
- There has been an unforeseen circumstance such as a health-related issue.
- You make a request no later than 18 months after:
- the settlement date (for an eligible home), or
- the date you receive the COU once construction of the new home is finished (for vacant land).
If you have any concerns about meeting your residency requirements, you should contact us as early as possible.
Understand the terms and conditions
There are terms and conditions for deferring duty which you need to meet. Payments are made through a direct debit arrangement with us and there are set periods of time for these.
Read more about the terms and conditions for deferring duty.
Check if you may be eligible for the Pensioner Duty Deferral Scheme
Use this eligibility checker to find out if you may be eligible to claim the pensioner duty deferral.
Check if you may be eligible for the Pensioner Duty Deferral SchemeClaim the pensioner duty deferral
Before claiming the Pensioner Duty Deferral Scheme, check you meet all the requirements explained on this page. It is your responsibility to provide an accurate self-assessment of your situation.
To make a claim for pensioner duty deferral you need to complete the online Buyer Verification Declaration form (BVD). You should do this before you register the title transfer of your new property or land with ACT Land Titles.
To complete the BVD form, you need to provide a concession code. Choose a code from the following table.
| Transaction date | Deferral code |
|---|---|
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Make a claim
Go to the following BVD form to make a claim.
Claim the pensioner duty deferral on your Buyer Verification
Next steps
Your Pensioner Duty Deferral Scheme claim does not go through an assessment process. We will issue you with a notice of assessment for duty, based on your self-assessed claim. This will have the conveyance duty concession applied.
You do not have to take any further action unless your circumstances change, then you need to notify us.
After you’ve received your assessment, we may contact you to verify your eligibility for the concession. For example, we may require you to give us copies of any documents that support your eligibility (as explained under the evidence sections). We may also ask you to prove you have met your residence requirements at the home. Due to this, you need to keep copies of your supporting documents for at least 5 years after the transaction date of buying your property or land.
Your obligations and responsibilities
All concession and exemption applications through the ACT Revenue Office are self-assessed. You are obligated to make sure you can meet (or will meet) all the requirements before claiming for the Pensioner Duty Deferral Scheme. This may include seeking independent financial or legal advice.
The notice of assessment you receive will be based on the information you provide. The ACT Revenue Office will not confirm whether that information is correct at that time.
The ACT Revenue Office conducts compliance checks on eligibility for claimed concessions. If it is determined that you have not met all the requirements, a reassessment may be issued. Penalty tax and/or interest may apply. The default rate for penalty tax is 25 per cent, though the imposed rate can vary depending on your conduct.
It is important that you remember to meet all the requirements, this is both before and after you receive your notice of assessment. This includes meeting the residence requirement (eligibility requirement 2) to live in your new home continuously for one year. If you have purchased vacant land, you must reside on it within one year from the date you receive the certificate of occupancy.
If you have any concerns about meeting your requirements, you should contact us as early as possible.
You need to keep copies of your supporting documents for at least 5 years after the transaction date of buying your property. Due to the nature of the requirements, compliance checks may occur over 2 years or more after the assessment.
Contact us
Duties Operations Team:
- Phone: (02) 6207 0028, option 3
- Email: duties@act.gov.au