ACT Rates Deferral for Pensioners and Homeowners Over 65

Two Deferral Pathways, Different Requirements

The ACT offers rates deferral under section 46 of the Rates Act 2004, but the entry requirements depend on whether you hold a concession card.

Pensioner deferral is for holders of a Pensioner Concession Card or DVA Veteran Gold Card. If you already receive the $750 rates rebate, deferral lets you postpone the remaining balance. There's no separate equity test — the standard ownership and principal residence rules apply.

Aged 65+ deferral is for self-funded retirees and other homeowners who don't hold a qualifying concession card. You must be 65 or older and hold at least 75% equity in your principal place of residence. There is no income test — the equity threshold is the only financial gateway.

Both pathways require you to live in the property as your main home. Investment properties and second homes don't qualify.

How the 75% Equity Requirement Works

Equity is calculated as the property's current market value minus all registered mortgages and charges. For a property worth $1,400,000 with a $150,000 mortgage:

($1,400,000 - $150,000) ÷ $1,400,000 = 89.3% equity

That clears the 75% threshold. If a commercial mortgage is registered on the title, the ACT Revenue Office may need written consent from the lender before approving the deferral, because deferred rates become a statutory charge on the land.

What Deferral Actually Means

Deferral is not a rebate. Your rates bill still accrues — it's converted into a debt attached to your property title. The deferred balance earns simple interest at a concessional rate pegged to the Reserve Bank of Australia's 90-day Bank Accepted Bill rate, recalculated every January and July.

The debt doesn't need to be repaid while you live in the home. It becomes due when you sell the property or transfer the title. A permanent move out of the home revokes the deferral determination because it no longer meets the principal-residence requirement; ask the ACT Revenue Office how an outstanding balance must be handled. If you pass away, the deceased estate is responsible for the debt.

For pensioners who also receive the rebate, the deferral applies only to the net balance after the rebate. You're not deferring the portion the rebate already covers.

How to Apply

Pensioner deferral: apply through the same ACT Revenue Office online portal used for the rebate. Select the deferral option when submitting your concession application.

Aged 65+ deferral: submit the Rates Deferral (Aged) Application Form under section 46. You'll need proof of age (passport or driver's licence), your Rates Account Number, and a recent mortgage statement or discharge showing at least 75% equity. Paper forms are available from Access Canberra or the Revenue Office.

Once approved, the deferral continues automatically each year unless your circumstances change (loss of equity below 75%, sale of property, or moving out). There's no annual re-application for the pensioner or aged 65+ pathways.

When Deferral Makes Sense

Deferral suits homeowners who are asset-rich but cash-poor — the property is valuable, but liquid income is tight. Converting rates into a low-interest charge against the home preserves cash flow now, with the balance settling when the property eventually transfers.

It's less attractive if you plan to sell soon, because the accumulated debt plus interest is deducted from the sale proceeds at settlement. The ACT Rates Rebate and Deferral Guide includes a deferral interest projection worksheet so you can see what the debt looks like over 5, 10, or 15 years before committing.

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