ACT Rates Hardship Deferral for Low-Income Homeowners

When You Don't Qualify for the Pensioner Rebate

The ACT pensioner rates rebate requires a Pensioner Concession Card or DVA Veteran Gold Card. The aged 65+ deferral requires being 65 or older with 75% home equity. If you're under 65, without a qualifying card, and struggling to pay your rates, neither the pensioner rebate nor the aged 65+ deferral applies.

But there is a third pathway: the financial hardship rates deferral under section 46 of the Rates Act 2004.

What the Hardship Deferral Offers

Like the other deferral schemes, hardship deferral lets you postpone paying your rates. The unpaid amount becomes a debt attached to your property, accruing simple interest at the concessional RBA-linked rate. The debt is settled when you sell the property, transfer the title, or your estate handles it.

The hardship scheme has no age requirement. You must be 18 or older and own the property as your principal place of residence.

The critical difference from the pensioner and aged deferral schemes: you must reapply every year. The hardship deferral is assessed annually based on your current financial circumstances, not granted indefinitely.

The Application Process

The hardship deferral requires substantially more documentation than the pensioner rebate. The ACT Revenue Office needs to see that your financial situation genuinely prevents you from paying rates — this isn't a convenience measure.

You'll need to provide:

• Household income statements — payslips, Centrelink income statements, or tax returns showing current earnings
• Bank statements
• Asset register — details of savings, investments, vehicles, and other owned assets
• Debt schedule — outstanding loans, credit card balances, and other liabilities
• A written explanation of the circumstances causing financial hardship

The Commissioner for ACT Revenue assesses each application on its merits and considers the financial disclosures submitted.

Submit through the ACT Revenue Office, either online via your ACT Digital Account or using the Rates Deferral (Hardship) Application Form available from Access Canberra or by calling (02) 6207 0028.

Beyond Deferral: Discretionary Remission

In exceptional circumstances, the Commissioner can also:

• Remit (cancel) rates under section 42 of the Rates Act 2004 — wiping part or all of the liability
• Remit interest under section 43 — cancelling accrued interest on overdue or deferred rates

These are discretionary powers, not entitlements. The Commissioner assesses requests based on the evidence provided; include relevant financial disclosures and medical evidence where applicable.

If You're Already Behind on Rates

If you have rates arrears and are receiving penalty notices, the hardship deferral may not be your best first step. The ACT Revenue Office charges penalty interest on overdue rates, and if the debt has progressed to formal recovery, a deferral application won't automatically stop that process.

In this situation, contact one of these free services first:

• Care Inc. / National Debt Helpline: 1800 007 007 — free, confidential financial counselling and advocacy for ACT residents
• Canberra Community Law: (02) 6218 7900 — free legal advice on debt, housing, and government decisions
• Legal Aid ACT: 1300 654 314 — free legal information and representation for qualifying residents

These services can negotiate with the Revenue Office on your behalf, help you prepare a hardship application, and ensure you're not missing other support you're entitled to. They handle this kind of work every day.

The ACT Rates Rebate and Deferral Guide covers all three ACT deferral pathways and the remission process, but if you're in active financial distress, the free counselling services above should be your first call.

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