Home > Queensland Government Pensioner Rate Subsidy Scheme

Queensland Government Pensioner Rate Subsidy Scheme

Policy No.:: 2-5
Records file No.:: OPS/00526
Date of EMC endorsement:: 04 March 2004
Date of implementation:: November 2004
Date to be reviewed:: November 2005
Directorate:: Service Delivery
Contact:: Manager, Concessions Unit
Authority:: Cabinet Decision Number 33614 of 8 September 1980

Policy Statement:

To assist pensioner property owners to remain in their own homes, by alleviating the impact of rates and charges levied by Local Governments.

Principles:

To provide a State Government subsidy equivalent to 20% (to a maximum amount of $180 per annum) of the gross rates and charges levied by Local Government.
This subsidy is paid by the State Government to the Local Government to be passed on to approved pensioner ratepayers.

PROCEDURE

Purpose:

These procedures aim to ensure that Local Governments assess applicants for the Pensioner Rate Subsidy Scheme in a fair and equitable manner, and that the Scheme's processes are applied on a consistent basis throughout Queensland.

Process:

The process addresses the following ten sections:

Definitions
Ownership
Tenancies
Residential requirements
Trusteeships
Administrative arrangements
Pro-rata subsidies
Lapsed subsidies
Accountability
Privacy Provisions

1. Definitions

For the purpose of the Scheme, the following definitions will apply:

Approved Pensioner - a pensioner who:

is and remains an eligible holder of a Queensland ‘Pensioner Concession Card' issued by Centrelink, on behalf of the Department of Family and Community Services, or the Department of Veterans' Affairs, or a Queensland ‘Repatriation Health Card - For All Conditions' (Gold Card) issued by the Department of Veterans' Affairs; and
is the owner or life tenant (either solely or jointly) of the property which is located in Queensland and which is his/her principal place of residence; and
has, either solely or jointly with a co-owner, the legal responsibility for the payment of rates and charges as defined herein, which are levied in respect of the said property by the Local Government in whose area the property is situated.

Local Government - The Brisbane City Council and any Local Government (Council) as defined by the Local Government Act 1993.

Owner – As defined under Section 4 of the Local Government Act 1993.

Spouse - A person's partner in marriage or a de facto relationship as recognised by the Acts Interpretation Act 1954 S. 32DA (1) and (5) (a) that is to say “…. a reference to a de facto partner is a reference to either 1 of 2 persons who are living together as a couple on a genuine domestic basis but who are not married to each other or related by family. ….” and “the gender of the persons is not relevant;…”

2. Ownership

In cases of co-ownership, the State Government subsidy will apply only to the approved pensioner's proportionate share of the gross rates and charges. For the purposes of determining proportionate share, a Local Government shall have regard to conveyancing practice that requires the nature and extent of co-ownership to be recorded on the Transfer (Form 1) lodged in the Titles Office and the Property Transfer Information (Form 24) forwarded to Local Government for change of ownership and rates purposes.

The above method of determining an approved pensioner's proportionate share shall apply except where the co-owners are:

an approved pensioner and his/her spouse; or
an approved pensioner and a bank, other financial institution, or government department where the latter holds joint title for debt security purposes and has no responsibility for rates, charges or other costs of maintaining the property.

In either of these situations, the tenure is to be treated as sole ownership and the subsidy approved in full.

It is not a requirement for the spouse to also reside at the property but it must be established in these cases that the approved pensioner is wholly responsible for the payment of all rates and charges levied in respect of the property. The approved pensioner's responsibility for payment of all rates and charges in this circumstance must be established to the satisfaction of the Local Government by sighting and placing on file a copy of a court order or statutory declaration completed by the applicant.

Under no circumstances is a pensioner to be regarded as an owner or co-owner unless:

his/her name appears as such on the Certificate of Title of the property; or
it can be clearly established that the title to the property is held in the name of a bank, other financial institution or government department for debt security reasons and the pensioner has not been relieved of the responsibility to pay all rates and charges levied in respect of the property.

The criteria for determining eligible life tenants will be that:

the property in respect of which the rates are levied must be the principal place of residence of the pensioner and the pensioner must actually reside on the property (ie. a life tenant cannot reside in a nursing home and claim the subsidy, as may occur with ordinary home ownership); and
the pensioner must not have a major interest in any other residential property; and
the life tenancy must be created by a valid Will which applies to the property in question, or by a Supreme or Family Court Order; and
there must be no provision in the Will or Court Order, which would relieve the life tenant of the obligation to pay the rates and charges, levied in respect of the property.

For the purpose of determining whether an approved pensioner's residence constitutes his/her principal place of residence, Local Governments should adopt a commonsense approach. The question of whether a particular property is a person's ‘principal place of residence' is one of fact, taking into account all the circumstances of the particular case. Each case is to be considered on its own merits. As a guide, a Local Government may choose to use as a check, if needed, whether the address of the approved pensioner's principal place of residence is the same as that of the individual's address on the State Electoral Roll. The words ‘principal' and ‘residence' are to be given their normal meaning. The principal place of residence must be located in Queensland.

Under no circumstances is an approved pensioner to receive a subsidy in respect of the same period for more than one property that is his/her principal place of residence, within or outside Queensland.

Rates and Charges - General, special, separate (eg environmental levy), utility (sewerage, cleansing and water) rates and or charges as described in Section 963 of the Local Government Act 1993 but excluding charges as described in Section 1071A of the Act and excluding any amount levied in respect of the subject property which exceeds $900 per annum, or as determined from time to time by the Department.

For the purposes of calculating gross rates and charges levied in respect of an approved pensioner's principal place of residence, any amount levied under the Fire & Rescue Authority Act 1990 (ie. an urban fire services levy) is not to be included, whereas any rural fire service levy is to be included because it is a special or separate rate or charge levied under the Local Government Act 1993.

3. Tenancies

With the exception of life tenancies as described in Section 2, tenancies of any other sort (including life-time leases) are not regarded as the type of tenure that would entitle the pensioner to the subsidy even though he/she might be responsible for payment of rates and charges. Strict adherence to this principle is important to avoid breaking into areas which are, or are very close to, normal lease or rental.

4. Residential requirements

Where a pensioner, for reasons of ill health or infirmity (eg. poor health, feeble in body or health, physically weak, especially through age) resides some or all of the time in alternative accommodation such as a nursing home or similar type accommodation (where personal care is available on site and provided as required) or with family or friends, the residence may be regarded as the ‘principal place of residence' if it is not occupied on a paid tenancy basis during the absence of the approved pensioner owner/s. The Local Government must be satisfied that the residence is not occupied on a paid tenancy basis and that the approved pensioner owner/s is/are solely responsible for the payment of rates and charges levied in respect of the said property.

In cases where a pensioner owns a multi-unit property or a rural property which produces significant income and which is his/her principal place of residence, the applicant will qualify provided he/she qualifies in all other respects. The provision of the maximum subsidy has been included to prevent unduly large benefits in such cases.

5. Trusteeship

In the case of property held in trusteeship the applicant, in order to be considered for eligibility, must be considered by the Local Government to have legal responsibility for payment of all rates and charges levied in respect of the property, regardless of whether the applicant is the trustee or the beneficiary of the trust.

6. Administrative arrangements

Joint Administration

The State Government sees the participation of Local Governments in the administration of the Scheme as a fundamental prerequisite to its successful implementation and operation. It is recognised also that this will involve Local Governments in some additional administrative costs, the degree of which would depend on a number of factors including whether or not a particular Local Government already has a remission policy of its own and the extent to which its Guidelines are at variance with those of the State Government Pensioner Rate Subsidy Scheme.

Local Governments have accepted that by cooperating in this way they are acting in the best interests of their pensioner ratepayers and that any additional costs are more than offset by the substantial State Government subsidies and financial assistance provided in other ways.

In regard to the actual funding of the subsidies, the State Government does not wish to see Local Governments suffering financial disadvantage from the Scheme at any time. Claims will therefore be processed and funds advanced as promptly as possible.

The cooperation of Local Governments is sought in the administration of the Scheme to benefit pensioner ratepayers in their areas.

The State Government assistance provides a subsidy to pensioners towards the cost of rates and charges levied on them by Local Governments. It is not a subsidy to Local Governments on remissions allowed by them.

Local Governments are requested to:

disseminate information on the availability and policies of the State Government subsidy throughout the area, in a way that ensures that all entitled are aware of the Scheme. Such publicity should specify an opening and closing date for applications. These dates should be determined by the Local Government in accordance with its own administrative requirements and the timing of its billing; and
establish the eligibility of ratepayers in their areas for assistance under the Scheme; and
show the State Government subsidy as a separate and clearly identifiable item on rates assessment notices of approved pensioners; and
lodge claims to the Department on the prescribed form, certified by the Chief Executive Officer or his/her nominee at quarterly or longer intervals.

Late Applications

It is a matter for Local Governments as to whether or not they are prepared to accept late applications in cases where the applicant met all the eligibility requirements at the commencement of the billing period but had not applied at that time. Where late applications are accepted, the subsidy is to be provided for the current billing period only and not applied retrospectively to previous billing periods. The billing period is determined by each Local Government and may not necessarily coincide with a current financial year. In special circumstances and acting on the advice of the Department, the provisions of this sub-clause may be waived in order to allow for the subsidy to be applied retrospectively to previous billing periods.

For the purposes of this Scheme, the definition of special circumstances that would constitute valid extenuating conditions to allow the subsidy to be backdated are primarily considered to be those situations where:

A person's pension has been granted and backdated, or their pensioner status restored retrospectively as a result of a proper appeal process, thereby preventing them from applying at the date of grant; or
A person's failure to be granted the subsidy has resulted from an acknowledged error on the part of a Local Government or the Department of Communities or a person professionally advising the pensioner, such as a solicitor or financial adviser.

Any claim on the Government for reimbursement of subsidies allowed on late applications will be met in the normal way and will be accepted by the Department at any time. Where the provisions for late applications are waived on the advice of the Department, any resultant claim on the Government for reimbursement of subsidies applied retrospectively to previous billing periods will also be met in the normal way and will be accepted by the Department at any time.

Confirmation of Eligibility

Irrespective of the number of notices issued by Local Governments in respect of each year, only one application/registration need be sought from pensioners. An application/registration need only be sought from pensioners either:

when applying for the subsidy for the first time; or
when the Local Government needs to re-establish eligibility (eg. after having a qualifying concession card regranted, changing the address of the principal place of residence, etc).

Initial or Re-established Eligibility:

Administrative expediency requires that an applicant's initial or re-established eligibility be determined on the basis of whether the eligibility criteria (as defined within this Policy) are satisfied by the applicant's circumstances on the day on which the application is made. In addition to receiving either a signed or telephone application, incorporating the applicant's consent, an officer of the relevant Local Government must:

sight the original of the applicant's current qualifying concession card; or
sight a photocopy of both sides of the applicant's current qualifying concession card; or
confirm concessional status online through Centrelink Customer Confirmation eService.

In cases where interstate pensioners move permanently to Queensland , Centrelink and the Department of Veterans' Affairs (DVA) may not immediately issue a Queensland card. In the interim, an application may be accepted provided that the Local Government is satisfied that the pensioner's permanent place of residence is now located in Queensland . For example, proof of residence could be met by the pensioner providing a letter of confirmation of benefit from Centrelink or DVA listing the address of the property on which the subsidy is being claimed.

Telephone applications must obtain and record the same information and applicant's declarations as the written application form, and comply with the provisions of the Centrelink Customer Confirmation eService.

Continuing Eligibility: Local Governments must verify continuing eligibility on at least an annual basis by either:

confirming a customer's concessional status via Centrelink's Customer Confirmation eService, or verbally through the Centrelink Customer Confirmation Service helpdesk; or
obtaining from the pensioner, written verification from the relevant Commonwealth agency; or
an officer of the relevant Local Government sighting either the original or a photocopy (both sides) of the applicant's current qualifying concession card.

If the process of determining continuing eligibility confirms that a previously approved pensioner, for whatever reason, has ceased to be eligible for the subsidy, the Queensland Government does not require the relevant Local Government to obtain a recoupment of the subsidy.

However in cases where there is reason to suspect that fraud has occurred, the Department must be notified in order that a decision can be made regarding whether action should be taken to recover the amount of subsidy in question.

7. Pro-Rata subsidies

Where a Local Government's billing period does not exceed three months, an approved pensioner purchasing a property or acquiring approved pensioner status after the commencement of the Local Government's billing period will not be entitled to a pro-rata subsidy for that billing period. In these cases, eligibility for the subsidy will commence from the first day of the next billing period.

Where a Local Government's billing period exceeds three months, the State Government will only pay to that Local Government subsidies upon a pro-rata basis from the date of an approved pensioner acquiring approved pensioner status, or up to and including (in the case of sale), or following (in the case of purchase), the date upon which that property was sold or purchased by an approved pensioner as evidenced by the Property Transfer Information (Form 24) or by official advice forwarded to a Local Government regarding change of ownership.

Notwithstanding the provisions outlined above, where the sole registered owner dies, and at the time of death, is an approved pensioner in receipt of the subsidy:

the surviving spouse will be entitled to the subsidy on a pro-rata basis from the beginning of the billing period immediately following the date of his/her spouse's death, providing that:

he/she is an approved and eligible pensioner at the time of his/her spouse's death; and
the title has or will be recorded with the surviving spouse as the registered owner; and
the Local Government is satisfied that the transmission of the title occurs within a reasonable time. The surviving spouse is to be encouraged to expedite the transfer of the property's title.

Notification is to be added to the rate searches of pensioner-owned properties issued by Local Governments whose billing period exceeds three months, to alert solicitors that the property being sold is currently owned by a pensioner.

Pensioner rebates will only be allowed on a pro-rata basis to the date of sale and the rates account will be adjusted to reflect actual rebate to this date only. In the event that the rebate is not calculated on a pro-rata basis on settlement, advice reflecting the full rates from the date of sale will be sent to the purchase.

8. Lapsed subsidies

The Scheme is not aimed at providing an incentive for prompt payment and hence there is no provision for the subsidy to lapse if the ratepayer does not pay by a specified time or falls into arrears.

For the purposes of this policy, the approved pensioner's rate subsidy only applies to the property while the pensioner satisfies the eligibility criteria. That is, the rate subsidy continues only while the approved pensioner is alive and retains ownership of the property. Upon the approved pensioner's death or in the event of the sale of the property the subsidy ceases from the date of death or sale, unless the person who inherits or purchases the property applies for and satisfies the subsidy eligibility requirements.

In the case where the property is sold, normal conveyancing practice will apply, that is, an adjustment (based on the subsidy entitlement at the time of sale and normal rate charges thereafter) will be made at settlement in favour of the purchaser, if rates are in arrears, or in favour of the vendor, if the rates are pre-paid beyond the settlement period.

9. Accountability

The claims made by Local Governments will be for amounts calculated on the basis of 20% of gross rates and charges (up to a maximum amount of $180 per annum) levied in respect of approved pensioners during the period. It is neither the desire nor the intention that unduly restrictive or demanding accountability requirements be placed upon Local Governments.

It is therefore unnecessary to submit full details of calculations or computer print outs when lodging claims with the State Government. These will be subject to verification in the course of the normal audit of the Local Government's accounts by the Queensland Audit Office representative.

Local Governments are expected to use the Claim for Advance form as prescribed and provided by the Department. This includes verification by the Chief Executive Officer, or his/her nominee.

It is expected that the Auditor will make whatever checks and tests are considered necessary in the normal course of the audit to satisfy the validity of the Local Government's claims for advances and the conformity of the Local Government's procedures with Scheme's policy framework. Full, well-documented records are therefore required to be maintained.

10. Privacy provision

The Department of Communities respects and protects people's privacy and collects, stores, uses, and discloses personal information responsibly and transparently when it delivers government services and conducts government business.

n addition to the confidentiality, secrecy, and disclosure provision of the legislation that the department administers, the department collects, stores, uses, and discloses personal information in accordance with the information privacy principles identified in Information Standard No. 42 Information Privacy.

If other agencies collect, store, use, or disclose personal information on behalf of the Department of Communities, or if they have access to personal information that the department holds in its records, they must comply with the same information privacy principles as the department.

You can view more on this at the website: http://www.communities.qld.gov.au/privacy/privacyplan/

Delegations:

Manager Concessions, Director Service Support and Provision, Executive Director, Office of Rural and Regional Communities and Deputy Director-General have an unlimited financial delegation within the budget allocation to approve claims for reimbursement submitted by Local Government for subsidies allowed to approved pensioners.

Related legislation or standards

Local Government Act 1993

Related departmental policy

Queensland Government Electricity Rebate Scheme
Queensland Government Electricity Life Support Concession Scheme

Rescinded policies

Administrative Guidelines for the Queensland Government Pensioner Rate Subsidy Scheme

Linda Apelt
Director-General

Seniors