Australian Capital Territory
Rates (Deferral) Determination 2017 (No 1)
Disallowable instrument DI2017–143
made under the  
Rates Act 2004, section 46 (Determination for deferral of rates on application)
EXPLANATORY STATEMENT

Commencement

This instrument commences on 1 July 2017.

Background

Pensioners and other eligible households are able to defer payment of their general rates. This instrument updates the eligibility criteria for general rates deferral to non‑pensioners who meet income, land value and equity tests. 

This rates deferral scheme supports ageing in place by providing a choice to households with high value properties, but relatively modest incomes, to defer their rates as a charge against the property. 

This instrument determines the income, asset and equity requirements that form the eligibility criteria for the rates deferral scheme.

Under section 46 of the Rates Act 2004 (the Act), the Minister has authority to determine, by disallowable instrument, the amounts and rates applicable for the deferral of rates for non-pensioners.

Income threshold amount

This instrument determines, for section 46 (2) (f) (ii) of the Act, that the income threshold amount is $91,500. The Commissioner for ACT Revenue (the Commissioner) must be satisfied that the total income of the owner, or all the owners, of a parcel is not more than this amount to make a determination about the deferral of rates.

The determined income threshold amount has been increased from $89,300 to $91,500 and is based on the 2.36 per cent increase of the ACT adult full time Average Weekly Total Earnings (Original) in the twelve months to November 2016 as published by the Australian Bureau of Statistics. 

Determined value

For section 46 (2) (f) (iii) of the Act, this instrument determines that the determined value is $416,000. The Commissioner must be satisfied that the unimproved value of a parcel is more than the determined value to make a deferral determination.

The determined value of $416,000 is the 80th percentile for unimproved land value of all residential lands in the ACT. The determined value is reviewed annually to ensure it is reflective of current market values.

Determined percentage 

This instrument determines that the determined percentage for section 46 (2) (f) (iv) is 75 per cent. The Commissioner must be satisfied that the property owners have at least the determined percentage of equity in their home in order to make a deferral determination. This percentage remains unchanged from the previous instrument. 

Revocation

This instrument revokes DI2016-148. However, DI2016-148 continues to apply for the period 1 July 2016 to 30 June 2017, inclusive. 

Authorised by the Treasurer
Andrew Barr MLA
20 June 2017