Australian Capital Territory
Taxation Administration
(Amounts payable – Eligibility – Pensioner Duty Concession Scheme) 
Determination 2008 (No 1)
Disallowable instrument DI2008–78
made under the  
Taxation Administration Act 1999, s139 (Determination of amounts payable under tax laws)
EXPLANATORY STATEMENT

1.		This instrument is the Taxation Administration (Amounts Payable—Eligibility-	Pensioner Duty Concession Scheme) Determination 2008 (No 1).
2.		The instrument commences a 3 year moratorium on payment of the full 	amount of duty on 1 July 2008 to 30 June 2011.  The moratorium comprises 	the statutory suspension of the legal obligation to pay the full amount of duty 	for its duration, namely, from 1 July 2008 to 30 June 2011 inclusive (the 	moratorium period).  

3.		Regardless of the cessation of the moratorium on 30 June 2011, this 	instrument will apply to transactions entered into during the moratorium 	period.

4.		The Taxation Administration Act 1999 deals with the administration of various 	tax laws relating to the imposition of certain taxes, duties and fees.  These tax 	laws are specified in section 4 of the Taxation Administration Act 1999 and 	section 139 empowers the Minister to determine amounts payable for taxes, 	duties and fees, and the method by which an amount is to be calculated.  
	
5.		One of the specified tax laws is the Duties Act 1999 (the Act), Chapter 2 of 	which deals with the grant of a crown lease and the transfer or agreement for 	the transfer of a crown lease which is subject to duty.  This Instrument 	determines the:
(a)	eligibility criteria; 
(b)	conditions;
(c)	method of calculation of duty payable under section 31 of the 	Duties Act 1999; and
(d)	time limit for application.

6.		Section 12 of the Duties Act 1999 states that the duty is payable by the 	transferee (that is, the eligible homebuyer).  Under section 5 of the Duties Act 	1999, the amount is payable to the Territory. 
  
7.		This instrument is the first under a new scheme, therefore establishing the 	operation of the entire scheme.

8.		An applicant is not eligible for the concession if the applicant holds an interest 	in land other than the subject property and the property from where the 	applicant is moving.  The applicant must sell the property from where the 	applicant is moving within 1 year of occupancy of the subject property, or a 	longer period approved by the Commissioner.

9.		The formulas in paragraph 6 of the instrument are used to calculate the amount 	of concessional duty which is then rounded down to the nearest multiple of 5 	cents to arrive at the amount of duty payable per $100.  Where an amount is 	not a multiple of 5 cents, section 123 of the Taxation Administration Act 1999 	allows the Commissioner to round amounts down to the nearest multiple of 5 	cents.

10.		The concessional rates of duty ensure that the amount of the concession 	progressively reduces to zero at and beyond the upper dutiable value 	thresholds.  The dutiable value thresholds (the lower threshold and the 	upper threshold), and their method of calculation, are determined in a 	separate Disallowable Instrument.
a)	If the dutiable value of an eligible property does not exceed the lower threshold, an eligible home buyer is entitled to the maximum duty concession, with a minimum duty of $20 applied.  Part concession is available for purchases of eligible homes more than the lower threshold but less than the upper threshold.  The part concession is the concessional rate of duty for each $100 or part thereof exceeding the lower threshold up to the upper threshold at which point and beyond no concession is available.
b)	If the dutiable value of an eligible vacant block does not exceed the lower threshold, an eligible home buyer is entitled to the maximum duty concession with the minimum duty of $20 applied. Part concession is available for purchases of vacant blocks greater than the lower threshold.  The part concession is the concessional rate of duty for each $100 or part thereof exceeding the lower threshold up to the upper threshold at which point and beyond no concession is available.  
c)	Where the purchase is for a share in an eligible property or an eligible vacant block, the concession is proportional to the share purchased by the eligible home buyer.
11.		An applicant must occupy the home to which his or her application relates as 	the applicant’s principal place of residence for a continuous period of at least 6 	months, with the period of occupation starting within 1 year after completion 	of the eligible transaction to which the application relates i.e. transfer of the 	eligible property or the date of the Certificate of Occupancy following 	completion of construction of the residence on the eligible vacant block. 
12.		The Commissioner for ACT Revenue has the discretion to extend the time for 	an applicant to start the residency requirement in unforeseen circumstances or 	in circumstances over which the applicant has no control.  An example is 	where the applicant is obliged to move from his or her principal place of 	residence for health reasons.  The Commissioner may in these circumstances 	approve a residency period shorter than 6 months or exempt the applicant from 	the residency requirement altogether.

13.		An application for concessional duty under the Scheme must be received by 	the Commissioner for ACT Revenue before the date the duty must be paid or 	within 1 year, whichever is earlier.  For example in the case of an “Off the 	Plan Purchase” or an “Affordable House and Land Package”, the application 	must be received within 1 year of the liability to pay the duty arising.

Authorised by the Treasurer
Jon Stanhope MLA