Commonwealth and State Housing Agreement Act of 1956 (5 Eliz Ii No. 25) (Qld)

HOUSING. 5 E liz . II. No. 25,1956. Commonwealth and State Housing, Etc., Act. 173 HOUSING. An Act to Authorise the Execution by or on behalf * jgjy1- of the State of Queensland of a Further COMKON- Agreement between the Commonwealth of "2HT Australia and the Several States of the aaec “ t Commonwealth in relation to Housing, and 1956 for other purposes. [A ssented to 28 th N ovember , 1956.] W HEREAS by an agreement made the Preamble. nineteenth day of November, One thousand nine hundred and forty-five, between the Commonwealth and the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania and, pursuant to the terms of that agreement, varied as between the Commonwealth and certain of the States parties thereto by agreements dated respectively the twenty-sixth day of November, One thousand nine hundred and forty-eight, the thirtieth day of December, One thousand nine hundred and forty-nine, the twenty-fourth day of November, One thousand nine hundred and fifty-two, and the fifth day of March, One thousand nine hundred and fifty-four, entered into between the Treasurer of the Commonwealth and the Treasurers of certain States, and by an agreement dated the sixteenth day of April, One thousand nine hundred and fifty-five, between the Commonwealth and the States of New South Wales, Victoria, Queensland, South Australia and Western Australia further amended as between the Commonwealth and those States (which agreement, as varied from time to time, is herein called “ the 1945 Agreement ”) provision was made for the carrying out by the said States with the assistance of the Commonwealth of rental housing projects : A nd W hereas the 1945 Agreement was authorised or approved by the Parliaments of the Commonwealth and of the said States : ■ A nd W hereas in or about the month of August, One thousand nine hundred and fifty, the State of Tasmania withdrew from the rental housing scheme the subject of the 1945 Agreement and is no longer regarded as a party to the 1945 Agreement:

174 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, A nd W hereas , by reason of subclause (1) of clause 16 of the 1945 Agreement, the 1945 Agreement does not apply to housing projects commenced by the State of Queensland after the thirteenth day of December, One thousand nine hundred and fifty-five. A nd W hereas the Commonwealth has proposed to the States that the Commonwealth will grant further financial assistance under section ninety-six of the Commonwealth of Australia Constitution to the States for housing upon terms and conditions in accordance with the form of agreement contained in the First Schedule to this Act: A nd W hereas the Parliament of the Commonwealth has authorised the execution by or on behalf of the Commonwealth of an agreement in accordance with that form : A nd W hereas it is desirable that the execution by or on behalf of the State of Queensland of an agreement in accordance with that form should be authorised— Be it therefore enacted by the Queen’s Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled, and by the authority of the same, as follows :— short title. 1. This Act may be cited as “ The Commonwealth and State Housing Agreement Act of 1956.” Execution of 2. The execution for or on behalf of the State of agreement. Queensian(j Gf an agreement between the Commonwealth and the States in relation to housing in accordance with the form contained in the First Schedule to this Act is, and it is hereby declared always was, authorised. Application 3. The Treasurer is, and it is hereby declared in Home?S always was, authorised to agree with the Minister of Builders’ State of the Commonwealth for the time being Account. administering the *Housing Agreement Act 1956 of the Commonwealth, in pursuance of clause 16 (3) of the form of agreement contained in the First Schedule to this Act, upon the terms and conditions set out in the Second Schedule to this Act, and to make pursuant to those terms and conditions loans from the account * No. 43 of 1956 of the Commonwealth.

1956. HOUSING. Commonwealth and State Housing, Etc., Act. 175 called “ the Home Builders’ Account ” to be established in the Treasury pursuant to the said clause 16, which account is hereby appropriated accordingly. 4. The agreement in accordance with the form Agreement of agreement set out in the First Schedule to this Act ^terms when executed for and on behalf of the State of conditions Queensland and the Commonwealth of Australia, and^^f the terms and conditions set out in the Second Schedule law. to this Act when agreed upon by the Treasurer and the Minister of State of the Commonwealth for the time being administering the *Housing Agreement Act 1956 of the Commonwealth, shall have the force of law as though the agreement and those terms and conditions were enactments of this Act. 5. (1.) Section thirty-three of f“ The State Housing Rate of Acts, 1945 to 1955,” shall not apply with respect to the respect*of rate per centum per annum of the interest payable in certain respect of— borrowers (a) Contracts of sale under that Act enteredpurchasers' into (whether before, on or after the passing of this Act) by the Queensland Housing Commission with tenants of dwellings erected under the 1945 Agreement and completed on or before the thirtieth day of dune, One thousand nine hundred and fifty-six ; or ( b) Advances made to borrowers by the Queensland Housing Commission from moneys allocated to that Commission from the account called “ the Home Builders’ Account ” to be established in the Treasury pursuant to clause 16 of the form of agreement contained in the First Schedule to this Act. (2.) Every purchaser under a contract of sale to which subsection one of this section applies shall pay, and it is hereby declared always was liable to pay, to the Queensland Housing Commission, in compliance in every respect with the conditions of the contract thereunto binding him, interest in respect of the purchase money owing to the Commission at the rate of four pounds ten shillings per centum per annum. * No. 43 of 1956 of the Commonwealth, f 10 G. 6 No. 6 and amending Act.

176 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, (3.) Every borrower of an advance to which subsection one of this section applies shall pay to the Queensland Housing Commission, in compliance in every respect with the conditions of the advance thereunto binding him, interest at a rate per centum per annum equal to— (a) The rate of interest charged by the Commonwealth to the State, in pursuance of clause 9 of the form of agreement contained in the First Schedule to this Act, in respect of the moneys allocated by the State to the Commission from which the Commission made the advance to the borrower; plus (b) One half of one per centum. Deposit on sale. 6 . Notwithstanding the provisions of subsection three of section twenty-four of *“ The State Housing Acts, 1945 to 1955,” where the purchase price of any dwelling sold by the Queensland Housing Commission, pursuant to clause 15 of the form of agreement contained in the First Schedule to this Act, exceeds two thousand five hundred pounds, the deposit to be paid in respect of that sale shall be not less than— (i.) Two hundred and fifty pounds ; or (ii.) If the Governor in Council (who is hereby authorised to do so from time to time) shall by Order in Council determine that such deposit shall be some other amount, the amount for the time being so determined. Building societies, &c., authorised to receive loans from the Home Builders’ Account. 7. Where, in pursuance of clause 16 (3) of the form of agreement contained in the First Schedule to this Act the Treasurer proposes to make from the Home Builders’ Account any loan to—- (а) A building society registered under •}•“ The Building Societies Acts, 1886 to 1956 ” ; or (б) A co-operative society registered under $“ The Co-operative Societies Acts, 1946 to 1951 ” ; or * 10 G. 6 No. 6 and amending Act. t 50 V. No. 34 and amending Acts. J 10 G. 6 No. 50 and amending Acts.

1956. HOUSING. Commonwealth and State Housing, Etc., Act. 177 ( c) Any company, association or society prescribed by the Governor in Cjouincil by Proclamation published in the Gtazette or included in any class of company, association, or society so prescribed, then, notwithstanding anything contained in the Act whereunder that building society, co-operative society, company, association or society is constituted, incorporated or registered or in the constitution and rules thereof (and, in particular, notwithstanding any limitations in such Act or constitution and rules with respect to the receipt of moneys upon loan or the giving of security for moneys received upon loan) that building society, co-operative society, company, association or society is hereby authorised to receive that loan and to give in respect thereof security as required by the Treasurer and the constitution and rules of that building society, co-operative society, company, association or society shall be deemed to empower the receipt of such loan and the giving of such security. 8. All capital and interest moneys in respect of any Loans from loan made by the Treasurer from the Home Builders’ tBhueilHdeorms’e Account to— Account charged on (a) A building society registered under *“ The property and Building Societies Acts, 1886 to 1956 ” ; or basosrertoswoefr. ( b) A co-operative society registered under The Co-operative Societies Acts, 1946 to 1951 ”, shall forthwith upon the making of the loan become and be a first charge upon the property and assets of that society or association in priority to all other charges thereover or encumbrances thereon (including all prior such charges and encumbrances and also any charge or encumbrance thereover or thereon created by any other Act) save a prior charge created by this section in respect of an earlier such loan. * 50 V. No. 34 and amending Acts, f 10 G. 6 No. 50 and amending Acts.

178 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, Section 2.] First Schedule. A n A greement made the day of One thousand nine hundred and fifty-six B etween the C ommonwealth of A ustralia (in this agreement called 44 the Commonwealth ”) of the first part, T he S tate of N ew S outh W ales of the second part, T he S tate of V ictoria of the third part, T he S tate of Q ueensland of the fourth part, T he S tate of S outh A ustralia of the fifth part, T he S tate of W estern A ustralia of the sixth part, and T he S tate of T asmania of the seventh part. W hereas by an agreement made the nineteenth day of November, 1945, between the Commonwealth and the States of New South Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania and, pursuant to the terms of that agreement, varied as between the Commonwealth and certain of the States parties thereto by agreements dated respectively the twenty-sixth day of November, 1948, the thirtieth day of December, 1949, the twenty- fourth day of November, 1952, and the fifth day of March, 1954, entered into between the Treasurer of the Commonwealth and the Treasurers of certain States, and by an agreement dated the sixteenth day of April, 1955, between the Commonwealth and the States of New South Wales, Victoria, Queensland, South Australia and Western Australia further amended as between the Commonwealth and those States (which agreement, as varied from time to time, is in this agreement called 44 the 1945 Agreement ”) provision was made for the carrying out by the said States with the assistance of the Commonwealth of rental housing projects : A nd W hereas the 1945 Agreement was authorised or approved by the Parliaments of the Commonwealth and of the said States: A nd W hereas in or about the month of August, 1950, the State of Tasmania withdrew from the rental housing scheme the subject of the 1945 Agreement and is no longer regarded as a party to the 1945 Agreement : A nd W hereas , by reason of subclause (1) of clause 16 of the 1945 Agreement, the 1945 Agreement does not apply to housing projects commenced by the following States after the respective dates specified below, namely :— The State of New South Wales—the first day of April, 1956 ; The State of Victoria—the thirtieth day of April, 1956 ; The State of Queensland—the thirteenth day of December. 1955; The State of South Australia—the third day of January, 1956 ; The State of Western Australia—the fifteenth day of January, 1956: A nd W hereas the Commonwealth has proposed to the States that the Commonwealth will grant further financial assistance under section 96 of the Commonwealth of Australia Constitution to the States for housing upon the terms and conditions set out in this Agreement: A nd W hereas the Parliament of the Commonwealth has authorised the execution by and on behalf of the Commonwealth of this agreement:

1956. HOUSING. Commonwealth and State Housing, EtcAct . 179 Now IT IS HEREBY AGREED as follows I— L (1.) Notwithstanding that all the States of New South Wales, Approval of Victoria, Queensland, South Australia, Western Australia and Parliaments, Tasmania are named as parties to this agreement, this agreement shall operate as an agreement between the Commonwealth and each State, the Parliament of which authorises or approves the agreement as fully and effectually as if the State or States the Parliament or Parliaments of which so authorises or authorise or approves or approve the agreement were the only State or States named as a party or parties to the agreement. (2.) This agreement shall, as between the Commonwealth and a State, come into force upon being authorised or approved by the Parliament of that State. (3.) In this agreement, each State which is named as a party to this agreement and the Parliament of which authorises or approves this agreement is referred to as a 44 State,” and the expression 44 the States ” means, where the context so permits or requires, all of those States so authorising or approving this agreement. 2. The Commonwealth shall provide for or secure the Performance performance by it and its instrumentalities of the obligations of the of Agree- Commonwealth under this agreement and each of the States shallment* provide for or secure the performance by that State and its instrumentalities of the obligations of that State under this agreement. 3. (1.) In this agreement, unless the contrary intention appears — Interprets- 4 £ building society” means a society registered under thetlon' laws of a State as a building or housing society, whether terminating or permanent and whether or not a co-operative society; 44 dependant ” means a person who is wholly or partly dependent for his support upon the pay, earnings and income of, or upon a pension or compensation payable in qonsequence of the incapacity or death of, a person who is, or was, a member of the Forces ; 44 dwelling ” means a detached or semi-detached dwelling- house or a flat erected or to be erected by the Staie under this agreement and, subject to clause 11 of this agreement, includes such fences, outbuildings and other improvements and such connexions for sewerage, water, electricity and other services, as have been constructed for or are reasonably required to be constructed for that dwelling- house or flat; 44 eligible person ” means an eligible person within the meaning of the WarServiceHomesAct1918-1955 as amended from time to time and includes the wife of such an eligible person who is temporarily or permanently insane; 44 financial year ” means a period of twelve months commencing on the first day of July ; 44 home builder ” means a person who requires finance for the erection or purchase of a home for himself;

180 HOUSING. Commonwealth and State Housing , EtcAct. 5 E liz . II. No. 25, “ member of the Forces ” means a person who— (а) is, or during the war was, a member of the Active Permanent Forces, other than the Australian Imperial Force; (б) during the war was a member of the Australian Imperial Force; (c) was a member of the Citizen Forces enlisted, appointed or called up for continuous service for the duration of, and directly in connexion with, the war ; (d) served during the war in the Merchant Navy ; (e) is, or during the war was, engaged on continuous full-time service as a member of any Nursing or Women’s Service or Corps forming part of the Naval Military or Air Forces of the Commonwealth; (/) during the war was engaged on continuous full-time paid duty with any part of the Defence Force as a member of a Voluntary Aid Detachment; (g) during the war was engaged on service as a member of the Naval, Military or Air Forces of any part of the dominions of His Late Majesty King George the Sixth other than Australia, and who was born in Australia or was, immediately prior to his becoming a member of any of those Forces, domiciled in Australia; (h) during the war was engaged on continuous full-time service with any Nursing Service or other Women’s Service auxiliary to the Naval, Military or Air Forces of any part of the dominions of His Late Majesty King George the Sixth other than Australia, and who was born in Australia or was, immediately prior to her becoming a member of that Service, domiciled in Australia; (f) being at the time of allotment— (i.) a member of the Naval, Military or Air Forces of the Commonwealth, including a member of any Nursing or Women’s Service or Corps forming part of those Forces ; (ii.) a member of the Naval, Military or Air Forces of any part of the Queen’s Dominions other than Australia who was born in Australia or was, immediately prior to his becoming a member of any of those Forces, domiciled in Australia; or (iii.) a person engaged on continuous full-time service with any Nursing Service or other Women’s Service auxiliary to the Naval, Military or Air Forces of any part of the Queen’s Dominions other than Australia and who was born in Australia or was, immediately prior to her becoming a member of that Service, domiciled in Australia, was allotted for duty outside Australia in or in connexion with the warlike operations in Korea after the twenty-sixth day of June, 1950, or in or in

1956. HOUSING. Commonwealth and State Housing, Etc., Act. 181 connexion with the warlike operations in Malaya after the twenty-eighth day of June, 1950, and, if he was so allotted while in Australia, of in a part of the Queen’s Dominions other than the Common­ wealth, left the last port of call in Australia or in that other part of the Queen’s Dominions, as the case may be, for the purpose of serving in connexion with those operations ; or (j) is or was included in a class of members or former members of the Naval, Military or Air Forces of the Commonwealth which the Prime Minister and the Premier of a State may at any time agree shall comprise members of the Forces for the purposes of this agreement in respect of that State ; “ the Director ” means the Director of War Service Homes appointed for the purposes of the WarServiceHomesAct1918-1955 and includes any person for the time being performing the duties of the office of the Director of War Service Homes; “ the Loan Council ” means the Australian Loan Council constituted under the Financial Agreement a copy of which is set forth in the Schedule to the Financial AgreementAct1928 of the Commonwealth, as varied from time to time; “ the Minister ” means the Minister of State of the Commonwealth for the time being administering the Commonwealth Act authorising this agreement or a member of the Executive Council of the Commonwealth acting for the time being for and on behalf of that Minister ; “ the war ” means the war which commenced on the third day of September, 1939, and includes any other war in which His Late Majesty King George the Sixth became engaged after that date and before the date of this agreement. (2.) In this agreement, unless the contrary intention appears, words in the singular number include the plural and words in the masculine gender include the feminine. 4. (1.) Subject to this clause, the operation of the 1945 Agreement 1945 Agree shall be deemed to have been, as between the Commonwealth and each ment of the States other than the State of Tasmania, extended to the to thirtieth day of June, 1956. 1956 ’ (2.) The 1945 Agreement shall continue, and be deemed to have continued, to apply after the thirtieth day of June, 1956, to and in respect of the dwellings completed and advances made under that agreement on or before the thirtieth day of June, 1956. (3.) A dwelling commenced under the 1945 Agreement but not completed on or before the thirtieth day of June, 1956, shall be deemed to be erected under this agreement. (4.) Moneys advanced by the Commonwealth in accordance with the 1945 Agreement and expended by a State for purposes other than the erection of dwellings completed on or before the

182 HOUSING. Commonwealth and State Homing, Etc., Act. 5 E liz . II. No. 25, thirtieth day of June, 1956, shall be deemed not to be an advance under the 1945 Agreement for the purpose of the calculation of a loss under subclause ( 1 .) of clause 15 of the 1945 Agreement. (5.) Moneys advanced by the Commonwealth in accordance with this agreement and expended by a State on, and included in the capital cost of, dwellings completed on or before the thirtieth day of June, 1956, under the 1945 Agreement shall be deemed to be an advance under the 1945 Agreement for the purpose of the calculation of a loss under subclause (1.) of clause 15 of the 1945 Agreement. ( 6 .) For the purposes of this clause, a dwelling shall be deemed to have been completed if it was occupied or ready for immediate occupation. Advances to 5. (1.) During the financial years commencing on the first day States. of July in the years 1956, 1957, 1958, 1959 and 1960, respectively, the Commonwealth will make advances to the States, subject to the terms of this agreement, for the purposes of the erection of dwellings and of the provision of finance to home builders. (2.) Each State will, prior to the meeting of the Loan Council called to consider the borrowing programme to be approved by the Loan Council under the Financial Agreement for a financial year referred to in the last preceding subclause, notify the Commonwealth of the amount of the advances which the State requires under this agreement in that financial year. (3.) The amount to be advanced to a State under this clause in respect of a financial year referred to in subclause ( 1 .) of this clause shall be such amount as may be agreed upon between the Common­ wealth and that State, or, failing agreement, as may be allocated by the Commonwealth from the loan funds made available to the Commonwealth by the Loan Council in the approved borrowing programme in respect of that financial year. Advances to 6 . (1.) The total advances made available to a State under be allocated ciause 5 Gf this agreement in a financial year referred to in subclause y ta es. ^ y 0f ciause 5 0f this agreement shall be divided into two parts, one part of which shall be used for the erection of dwellings by the State, and the other part of which shall be used to provide finance for home builders in accordance with this agreement by means of loans by the State to building societies and other institutions approved by the Minister. (2.) During each of the financial years commencing on the first day of July, 1956, and the first day of July, 1957, respectively, each State shall allocate for the provision of finance for home builders not less than twenty per centum of the total advances made to that State under clause 5 of this agreement in that financial year. (3.) During each of the financial years commencing on the first day of July in the years 1958, 1959 and 1960, respectively, each State shall allocate for the provision of finance for home builders not less than thirty per centum of the total advances made to that State under clause 5 of this agreement in that financial year. Funds for 7. ( 1 .) Of the advances made to a State which pursuant to Service clause 6 of this agreement are to be used for the erection of dwellings Dwellings. by the State, the State shall set aside such portion as may be

1956. HOUSING. Commonwealth and State Housing, Etc., Act i 183 specified by the Minister from time to time, but not exceeding in a financial year five per centum of the amount of those advances in that financial year, for the purposes of clause 13 of this agreement. ( 2 .) During each of the financial years referred to in clause 5 of this agreement the Commonwealth will, in addition to the advances made under clause 5 of this agreement, advance to the State an amount equal to the amount set aside in that financial year by the State under the last preceding subclause. 8 . The amounts to be advanced in a financial year to a State Advances to pursuant to clause 5 and to subclause (2) of clause 7 of this agreement be made by shall be made available by the Commonwealth in that financial instalments, year by equal monthly instalments unless otherwise agreed between the Treasurer of the Commonwealth and the Treasurer of the State. 9. ( 1 .) Each advance made by the Commonwealth to a State interest, under this agreement shall bear interest computed from the date upon which the advance is made at a rate per centum per annum ascertained in accordance with subclauses (2.), (3.) and (4.) of this clause. (2.) In respect of advances made during the financial years commencing on the first day of July, 1956, and the first day of July, 1957, respectively, the rate shall be the long term bond rate less— (a) three-quarters of one per centum per annum, if the long term bond rate does not exceed four and oiie-half per centum per annum; or (b) one per centum per annum, if the long term bond rate exceeds four and one-half per centum per annum. (3.) In respect of advances made during the financial years commencing on the first day of July in the years 1958, 1959 and 1960, respectively, the rate shall be as agreed between the Com monwealth and the States, or, in default of agreement, as determineed by the Treasurer of the Commonwealth, but not exceeding the long term bond rate less three-quarters of one per centum per annu i ] m. (4.) For the purposes of subclauses ( 2 .) and (3.) of this clause, the long term bond rate shall be the interest rate payable inj respect of a Commonwealth Public Loan having a currency exceeding five years being raised in Australia at the date the advance is made or, if none is being raised at that date, in respect of the Commonwealth Public Loan having a currency exceeding five years last raised in Australia prior to that date. (5.) On the thirty-first day of December and the thirtieth day of June of each financial year referred to in clause 5 of this agreement each State will pay to the Commonwealth the interest which has accrued up to that thirty-first day of December or thirtieth day of June as the case may be on the advances made to that State during that financial year. 10. (1.) Subject to subclause (2.) of clause 15 of this agreement, Repayment each State will repay to the Commonwealth the amount of each of advances advance made to the State under this agreement together with interest States, thereon as aforesaid (except such interest as is paid by the State under * subclause (5.) of the last preceding clause) by equal annual instalments

184 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, of principal and interest so that the whole of the amount of the advance and interest will be repaid in fifty-three years from the beginning of the financial year next succeeding the financial year in which the advance was made, the first such instalment being payable on or before the end of the financial year next succeeding the financial year in which the advance was made. (2.) Accounting procedures in respect of the repayment of advances will be as agreed upon between the Treasurer of the Common­ wealth and the Treasurer of each State or, in default of agreement, as determined by the Treasurer of the Commonwealth, but nothing in this subclause shall affect the other provisions of this agreement. Use of 11. ( 1 .) Except as otherwise provided in this agreement, advances for dwellings erected with that part of the advances which pursuant to edrweecltliionngso.f cshlaaullsebe 6 ooff rtehaissoangarbeleemseiznet aanredtsotabneduarsded, pforrimthareileyrefcotriofnamofilidews eollfinlogws, or moderate means, and may be built in such localities and in accordance with such policy as the State deems fit. ( 2 .) The dwellings referred to in the last preceding subclause may comprise blocks of flats, especially in high-density population areas, but, except by agreement between the Minister and the appropriate Minister of the State, no block of flats shall exceed three storeys in height above the main entrance level. (3.) A State may use advances which are to be used for the erection of dwellings— (a) for the resumption or acquisition on just terms of land upon which the dwellings are to be erected ; and (b) subject to clause 12 of this agreement, to meet costs incurred by the State for the purposes of— (i.) forming, making, paving, kerbing or draining any streets, roads or thoroughfares for the purpose of the dwellings; and (ii.) draining or otherwise making suitable for the purpose of the dwellings, land upon which the dwellings are to be erected. Manner in 12. A State will ensure that advances by the Commonwealth which are not used for— advances may not be (а) shops; used. ( б ) except as may otherwise be agreed between the Minister and the appropriate Minister of the State, works, such as the construction of drainage systems or mains for sewerage, water, electricity or other services, which are normally the financial responsibility of Local Government or public utility authorities ; or (c) materials and works other than those required for the purpose of the erection of dwellings. Dwellings 13. (1.) Each State shall use the moneys set aside by it under for serving subclause (1.) of clause 7 of this agreement and the moneys advanced members of to it under subclause ( 2 .) of that clause for the purpose of the erection the Forc * es. of dwellings for allotment to serving members of the Naval, Military and Air Forces of the Commonwealth in accordance with this clause.

HOUSING. 185 1956. Commonwealth and State Housing, Etc., Act. ( 2 .) Dwellings erected by the State pursuant to this clause shall be of a size and standard normally erected by the State in pursuance of subclause ( 1 .) of clause 11 of this agreement. (3.) The State shall erect the dwellings in such localities and shall distribute the dwellings among those localities in such manner as the Minister may, after consultation with the appropriate Minister of the State, from time to time specify, but shall not be required to erect a dwelling in a locality which, in the opinion of the appropriate Minister of the State, is not a usual residential locality. (4.) Unless and until the Minister informs the State that a dwelling erected pursuant to this clause is not required for allotment to serving members of the Naval, Military and Air Forces of the Commonwealth— (а) the dwelling shall be let, at the option of the State, to a serving member of the Naval, Military or Air Forces of the Commonwealth nominated by the Commonwealth from time to time, or to the Commonwealth, and not otherwise; ( б ) the rent payable in respect of the dwelling shall be determined by the State in accordance with the usual formula applied by the State in determining the rent of dwellings erected by it under this agreement; (c) the State shall maintain the dwelling and its equipment in good repair and condition ; (d) except as provided in this clause, the State will retain ownership of the dwelling. 14. (I.) Subject to this clause and to subclause (4.) of clause 13 Allotment of of this agreement, each State will allot dwellings to persons who are dwellings. in need of proper housing accommodation in such order of priority as it decides. (2.) As far as possible fifty per centum of the dwellings erected from time to time by a State under this agreement shall be allotted to— (a) members of the Forces ; (b) dependants of members of the Forces ; and (c) widows of deceased members of the Forces. (3.) Dwellings erected by the State pursuant to clause 13 of this agreement shall, for the purposes of the last preceding subclause, be deemed to be allotted to members of the Forces. 15. (L) Except as provided in clause 13 of this agreement, Sale of each State may, if it so desires and at such price and on such terms dwellings, as it thinks fit, sell any dwellings, but sales pursuant to this subclause shall not affect the obligation of the State under clauses 9 and 10 of this agreement to repay and to pay interest on advances made under this agreement. (2.) Where a person to whom a dwelling could be sold is an eligible person who desires to purchase the dwelling from the Director in pursuance of the WarServiceHomesAct1918-1955 as

186 HOUSING. Commonwealth and State Housing , EtcAct. 5 E liz . II. No. 25, amended from time to time, or to obtain an advance under that Act to enable him to purchase the dwelling, the State may, if requested so to do by the Director, sell the dwelling to the Director or that eligible person, in which event no amount of money shall be payable to the State by the Director or the eligible person, as the case may be, but the State shall transfer to the Director or to the eligible person, as the case may be, an estate in fee simple in the land on which the dwelling is erected, if the dwelling is erected on freehold land, or issue a Crown lease in perpetuity to the Director or to the eligible person, as the case may be, if the dwelling is erected on Crown land, subject in either case to the reservations, exceptions and conditions (if any) contained in the Crown Grant or Crown lease, as the case may be, and to such encumbrances, reservations, exceptions, covenants or conditions subject to which the sale is expressly made, and the amount of the State’s indebtedness to the Commonwealth under subclause (1.) of clause 10 of this Agreement shall as from the date of sale be reduced by the amount of the purchase price of the dwelling less the amount, if any, credited to the purchaser. Home Builders’ Account. 16. (1.) Each State shall credit that part of the advances made to it by the Commonwealth which pursuant to clause 6 of this agreement is to be used for the provision of finance for home builders to a special account in the Public Accounts of the State to be called the “ Home Builders 5 Account55. (2.) The Home Builders 5 Account shall be credited also with the moneys received by the State from building societies and other approved institutions in repayment of principal and interest in respect of loans made by the State to those societies and institutions under this agreement and shall be debited with the repayments of principal and the payments of interest payable by the State to the Common­ wealth under subclause (5.) of clause 9 and under clause 10 of this agreement in respect of the advances made to the State for the provision of finance for home builders and with any expenses incurred by the State in providing that finance in accordance with this agreement. (3.) All moneys at any time available in the Home Builders 5 Account (after allowing for amounts by which the Account is to be debited under the last preceding subclause) shall be used by the State for the provision of finance for home builders in that State by means of loans by the State to building societies and other institutions approved by the Minister subject to and in accordance with terms and conditions agreed or to be agreed between the Minister and the appropriate Minister of the State. (4.) The State shall not use moneys from the Home Builders 5 Account except subject to and in accordance with such terms and conditions as are agreed under the last preceding subclause. (5.) Each State shall at least fourteen days before the first day of each of the months of July, October, January and April of each year notify the Commonwealth of its proposals for the use of the moneys available in the Home Builders 5 Account.

1956. HOUSING. Commonwealth and State Housing, Etc., Act. I n W itness whereof the Prime Minister of the Commonwealth of Australia and the Premiers of each of the States of New Sotith Wales, Victoria, Queensland, South Australia, Western Australia and Tasmania have signed this agreement for and on behalf of the Common­ wealth of Australia and of the said States respectively. S igned by the Prime Minister of the" Commonwealth of Australia for and on behalf of the Commonwealth in j the presence of— S igned by the Premier of the State of New"] South Wales for and on behalf of the > said State in the presence of— J S igned by the Premier of the State of") Victoria for and on behalf of the said ^ State in the presence of— J S igned by the Premier of the State of"j Queensland for and on behalf of the > said State in the presence of— J S igned by the Premier of the State of^| South Australia for and on behalf of S- J the said State in the presence of— S igned by the Premier of the State of') J Western Australia for and on behalf V of the said State in the presence of— S igned by the Premier of the State of^j Tasmania for and on behalf of the y said State in the presence of— J 187 Second Schedule. [Section 3.] APPLICATION OF HOME BUILDERS’ ACCOUNT— QUEENSLAND. S chedule of terms and conditions agreed between the M inister for N ational D evelopment and the appropriate M inister for the S tate of Q ueensland in pursuance of clause 16 (3.) of the A greement BETWEEN THE GOVERNMENTS OF THE COMMONWEALTH AND the S tates of A ustralia in respect of H ousing dated ..................... day of ......................... 1956. Approved Institutions. 1. (a) In this Schedule “ approved institutions ” means either building societies (which expression in this schedule includes housing societies) or other institutions approved by the Minister in accordance with clause 16. (3.) of the Housing Agreement 1956.

188 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, ( 6 ) It is the purpose of the Commonwealth that, as far as possible, moneys in the Home Builders’ Account should be made available to home builders through building societies; that the growth of building societies should be encouraged; and that other institutions will only be approved after due consideration by the Minister of the requirements for finance of building societies. Therefore, the Minister has, for the time being, for the purposes of clause 16. (3.) approved :— (i.) Building societies which as at 30th June, 1956, were registered under the Building Societies’ Act of 1886-1952 or under the Co-operative Societies Act of 1946-1951 and such new building societies as may be subsequently so registered and approved by the State ; and (ii.) For advances made during the financial year commencing on the first day of July, 1956, the Brisbane Permanent Building and Banking Company Limited and the Queensland Housing Commission. (c) To facilitate the growth of building societies in Queensland the State will:— (i.) Legislate to provide that notwithstanding the provisions of any Act, Regulation, registered rules or articles of association of any approved institution such approved institution may borrow moneys under the Housing Agreement 1956 without restriction as to the amount of such moneys which may be borrowed ; (ii.) Legislate to provide that the indebtedness of a building society to the State shall constitute a first charge on the assets of the society ; (iii.) Register in accordance with the relevant Act or Acts any new building society which may hereinafter be established, provided such new society has first complied with the requirements of such relevant Act or Acts. Amount to be allocated to approved Institutions. 2. (a) For the financial year commencing on the first day of July, 1956, the amount to be allocated to building societies and other approved institutions—based on a Loan allocation of £2,750,000— shall be not less than £550,000. (5) The aforementioned amount to be allocated to building societies and other approved institutions during the financial year commencing on the first day of July, 1956, shall be distributed as follows (i.) £250,000 shall be allocated to the Brisbane Permanent Building and Banking Company Limited. (ii.) Except as elsewhere provided in this section, £300,000 shall be allocated by equal monthly instalments to the Queensland Housing Commission. (iii.) The allocation to building societies shall be such amount as may be approved by the Minister and such approved allocation for building societies shall be obtained by reducing the aforementioned monthly allocations to the Queensland Housing Commission.

1956. HOUSING. Commonwealth and State Housing, Etc., Act. (iv.) If the total amount available in the Home Builders’ Account in the financial year commencing on the first day of July, 1956, is greater or less than £550,000 the amouiit allocated from the Account to the Queensland Housing Commission shall be adjusted to take account of the difference between £550,000 and the total available. (c) After the 30th day of June, 1957, the proportions in which the moneys available in the Home Builders’ Account shall be allocated as between different classes of approved institutions shall be as agreed between the Minister and the appropriate State Minister, or in default of agreement, as determined by the Minister, to the intent that the amount of moneys to be made available to building societies shall be progressively increased if and when the requirements of building societies for loans under the Agreement become sufficient to absorb such increased allocation. Terms upon which moneys are to be lent by the State to approved institutions. 3, (a) Except as elsewhere provided in this Schedule^ the terms upon which moneys are lent by a State to a building society or other approved institution shall be determined by the State in Accordance with the law of the State and the policy of the State in relation to such societies or institutions. (b) The State shall ensure that a building society or other approved institution shall observe the terms and conditions of this Schedule in respect of loans made to a society or other approved institution under the Agreement. (c) The State shall charge interest on loans made by it during the financial year commencing on the first day of July, 1956, to a building society or other approved institution at a rate per centum per annum calculated as follows :— (i.) For loans made to a building society a rate not exceeding one half of one per cent, more than the rate being charged by the Commonwealth to the State in pursuance of clause 9 of the Agreement at the time the loan is made to the building society; (ii.) For loans made to the Brisbane Permanent Building and Banking Co. Ltd. a rate not exceeding one fourth of one per cent, more than the rate being charged by the Commonwealth to the State in pursuance of clause 9 of the Agreement at the time the loan is made to the aforesaid Bank; (iii.) For loans made to the Queensland Housing Commission, on the understanding that there is no net charge to the Home Builders’ Account for administrative or other costs connected with the making of loans to or recovering of repayments of principal and interest from the Commission, a rate equal to the rate being charged by the Common­ wealth to the State in pursuance of clause 9 of the Agreement. The rate of interest to be charged on loans to be made in each financial year after the 30th day of June, 1957, shall be reviewed before the beginning of each financial year with the object of ensuring that 189

190 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, reasonable costs of administration incurred by or on behalf of the State in connection with the making of loans to Building Societies and other approved institutions do not impose a net charge on the Home Builders’ Account, and shall be such rate as may be agreed between the Minister and the appropriate Minister of the State or in default of such agreement as determined by the Minister. (d) In making a loan to a building society or other approved institution under this section the State shall require the amount of the loan, together with interest thereon in accordance with this section, to be repaid to the State within a period not exceeding thirty-one years from the date on which the loan is made, or within such other period as may be agreed upon between the Minister and the appropriate State Minister, repayment to be made by regular quarterly instalments of principal and interest unless otherwise agreed upon between the State and the Society or institution. (e) The State may require a building society or other approved institution to provide such security as the State deems fit in respect of moneys lent by the State to the society or institution. (/) The State shall make such amendments to existing legislation or provide such new legislation as may be necessary to give effect to the State’s obligations under this Schedule. Terms upon which a building society or other approved institution may make loans. 4. (a) Subject to this section, the terms upon which a building society or other approved institution may make loans shall be as agreed between the State and the society or institution. (b) Except as may otherwise be agreed from time to time between the Minister and the appropriate State Minister a building society or other approved institution shall not lend any part of an amount lent to it by the State pursuant to this Schedule except on the terms that the borrower from the building society or other approved institution shall be bound :— (i.) to provide an equity of not less than ten per centum of the valuation or purchase price, whichever is the lower amount, of the dwelling and the land on which it is erected, in respect of which the loan is being made ; and (ii.) to repay the loan, together with interest thereon, within a period not exceeding 31 years. (c) A building society may make loans to a borrower— (i.) up to £2,750 provided the loan does not exceed 90 per cent, of the value or purchase price of the house and the land on which it is erected ; (ii.) in excess of £2,750 and up to £4,000 provided the loan does not exceed 66 2/3 per cent, of the value or purchase price of the house and the land on which it is erected. (d) Subject to section 4 (b) the maximum advance upon the security of any dwelling shall be fixed by the State. (e) The rate of interest charged to a borrower by a building society or other approved institution in respect of a loan made by the Society or institution under the Agreement shall, together with any

HOUSING. 1956. Commonwealth and State Housing, Etc., Act. charges made to the borrower in respect of management or administration expenses, be a rate per centum per annum calculated as follows :— ' (i.) for loans made by a building society, a rate to be agreed between the State and the building society but not exceeding three fourths of one per cent, more than the rate charged by the State to the building society under section 3 (c) (i.) of this Schedule ; (ii.) for loans made by Brisbane Permanent Building and Banking Co. Ltd. a rate not exceeding three fourths of one per cent, more than the rate charged by the State to the aforesaid Bank under section 3 (c) (ii.) of this Schedule ; (iii.) for loans made by the Queensland Housing Commission a rate not exceeding one half of one per cent, more than the rate being charged by the State to the aforesaid Commission under section 3 (c) (iii.) of this Schedule ; or if the loan to the Society or institution is made after the 30th day of June, 1961, shall be such rate as may from time to time be agreed between the Minister and the appropriate Minister of the State, or in default of agreement, at the rate charged under this subsection as at 30th June, 1961. (/) A building society or other approved institution shall in respect of each loan made, ensure that a borrower shall, at his own expense, execute a legal mortgage to the society or approved institution of the property proposed as security for the loan, but a building society or other approved institution shall not make any advance on the security of any property which is subject to a prior mortgage unless the prior mortgage is in favour of the society or institution. (</) A building society or other approved institution shall not make any advance to a borrower for the erection or purchase of a dwelling unless the society or other approved institution is satisfied that the borrower intends to reside in the dwelling. (h) Loans under the Agreement by a building society or other approved institution in the financial year commencing on the first day of July, 1956, may not be made on the security of dwellings other than new dwellings. The term “ new dwelling 99 shall be as defined by the State. ( i ) In making a loan to a building society or other approved institution the State shall permit the society or other approved institution to make a loan to a person who desires to purchase a dwelling erected by the State, but shall not impose a condition that the society or other approved institution must make a loan to a person who desires to purchase a dwelling erected by the State. Administration. 5. (a) To facilitate the administration of the making of loans to building societies in pursuance of the terms and conditions of the Schedule, the Minister agrees, subject to approval by the Governor- General in pursuance of section 80 of the Public Service Act, to the War Service Homes Division of the Department of National Development providing, as agent for the State, administrative and technical assistance on behalf of the State. 191

192 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, (h) The State agrees that the following conditions shall apply in respect of the administrative and technical assistance to be undertaken by War Service Homes Division in pursuance of this section :— (i.) one State Minister and one State Department to be nominated as haying overall responsibility for the administration of the Scheme ; (ii.) War Service Homes Division to report to and through that Department which shall have the responsibility of making recommendations to its Minister ; (iii.) the State to lay down its requirements for technical reports ; War Service Homes Division may assist in an advisory capacity; (iv.) as War Service Homes Division has no officers and no representatives of its own in many country areas it is to be understood that in those areas the Division will have to work as it now does through Department of Works or Shire Engineers in obtaining technical advice ; (v.) the arrangements to be reviewed at the end of two years with a view to the State taking over the work done by War Service Homes Division. (c) The arrangements in respect of the administration of the Home Builders’ Account, including the assistance to be given by War Service Homes Division to the State shall be as set out in the Annexure to this Schedule, or as may otherwise be agreed between the Minister and the appropriate Minister of the State. (d) Nothing in section 5 shall affect the other sections of this Schedule. General Condition. 6 . Nothing in this Schedule affects the obligations of building societies or other approved institutions to comply with Common­ wealth and/or State laws in respect of their activities. Annexure. HOUSING AGREEMENT, 1956. HOME BUILDERS’ ACCOUNT—ADMINISTRATION. The arrangements agreed upon for the administration of the Home Builders’ Account are set out in the following paragraphs. State Responsibilities. 2. It is the responsibility of the State under the Housing Agreement to administer the Home Builders’ Account in accordance with clauses 6 and 16 of the Agreement and the Schedule of terms and conditions agreed between the appropriate Commonwealth and

1956. HOUSING. Commonwealth and State Housing, Etc., Act. State Ministers in pursuance of clause 16 and to make repayment to the Commonwealth, with interest, of advances allocated under clause 6 and credited under clause 16 to the Home Builders’ Accbumt. Registration and approval of Building Societies . 3. Societies shall be registered under “ The Building Societies Acts , 1886 to 1952,” by the Registrar of Friendly Societies and Building Societies, or under “ The Co-operative Societies Acts , 1946 to 1951,” by the Registrar of Co-operative Societies. 4. Applications by Societies for approval under the Agreement shall be made to one of the aforementioned Registrars who will submit the applications to the appropriate State Minister for approval. 5. The respective Registrars shall carry out such investigations of Building Societies as may be deemed by the State to be necessary and, when submitting a recommendation to the State Minister for approval of a Society, shall advise the War Service Homes Division of the practice of that Society in making preliminary investigations of proposals, physical inspections during construction of houses and valuations of completed houses. Financial Transactions. 6 . Loans by the State to the Brisbane Permanent Building and Banking Co. Ltd. and to the Queensland Housing Commission shall be made by the Queensland Treasury on the basis set out in the Schedule of terms and conditions agreed under clause 16 (3.) of the Agreement. Loans to the aforesaid Bank shall be made according to the following procedure : (i.) Payments to be made direct by the Treasury to the Bank ; the Bank to pay interest and redemption on State moneys direct to the State Treasury ; the Bank to provide security as considered by the State Solicitor-General to be satisfactory. (ii.) The Bank at close of the year, or at times during the year as required by the State Treasury, to submit statements certified by their Auditors, or other authority required by the State Treasury, establishing that the advances paid to the Bank have been utilised for the purchase and erection of new homes (homes which have not previously been occupied) and strictly in accordance with requirements of the Schedule agreed between the State and the Commonwealth. 7. The following transactions shall be carried out by the State Treasury and recorded in the Home Builders’ Account:— (i.) credit advances from the Commonwealth Treasury ; (ii.) debit loans by the State to Building Societies or other approved institutions ; (iii.) credit repayments of principal and interest by Building Societies and other approved institutions to the State; (iv.) debit repayments of principal and interest by the State to the Commonwealth. G ■! 193

194 HOUSING. Commonwealth and State Housing, Etc., Act. 5 E liz . II. No. 25, 8 . Payments to approved Building Societies shall be made by the State Treasury on receipt of a certificate from War Service Homes Division in accordance with the State’s requirements. 9. Approved Building Societies shall provide such information as to the use made of moneys advanced and securities held as the State Treasury may require. 10. Approved Building Societies shall notify War Service Homes Division, as agent of the State, of their requirements each quarter. 11. War Service Homes Division, as agent for the State, to compile the quarterly return required under clause 16 (5.) of the Agreement and submit the return to the appropriate State Minister for approval, the State Minister to submit the return to the Commonwealth. Technical Inspection. 12. A Building Society shall apply to War Service Homes Division for a certificate, where required by the State Treasury, in connection with the payment of loans from within the approved allocation to the Society. 18. War Service Homes Division shall carry out technical investigations and provide advice to State Treasury in connection with paragraph 12 on the basis set out hereunder :— (a) The State shall determine the extent of check which it considers necessary and which it will accept as reasonable evidence of security in making a payment. ( b) Any check imposed will depend on the organisation of the particular Society. Therefore, in making application through the Registrar for the State’s approval, the Societies shall be required to indicate tbe routine adopted by them in preliminary investigation of a particular proposal and in physical inspection during construction or valuation (for completed homes). (c) Queensland Housing Commission and the Brisbane Permanent Building and Banking Co. Ltd. shall be excepted from any technical check by War Service Homes Division. Moneys would be advanced to Queensland Housing Commission on acknowledgment and to the Brisbane Permanent Building and Banking Co. Ltd. on covenant to repay. (d) For well established and operating Societies, the following investigations shall be made :— (i.) Check plans and specifications and prepare estimate for comparison with tender ; (ii.) In case of loan on basis of new already erected home, check detailed valuation and Report (War Service Homes form adapted is recommended as giving full description of dwelling) ; * (iii.) Obtain audit certificate from Society certifying that legal documents have been executed securing amount of advance (or certificate from Society’s solicitors);

1956. HOUSING. Commonwealth and State Housing, Etc., Act. (iv.) Inspect properties at discretion of the State or its agent. (e) For other Societies the following investigations shall be made :— Erection of Homes. Depending on extent of technical organisation of Society :— (i.) Inadequate technical organisation : (а) Check land ; ( б ) Check plans and specifications ; (c) Prepare estimate and check with tender ; (d) Make periodical inspections when progress payment required. (ii.) Good technical organisation : (а) Check report on land ; ( б ) Check plans and specifications ; (c) Prepare estimate and compare with tender ; (d) Make periodical inspections—two at legist, one of which to be at stage before internal linings fixed and other at completion, or at discretion of the State, acceptance of Architect’s progress certificate. Purchase of New Home. {a) Check detailed valuation and report on each particular property. ( 6 ) Obtain certificate from Solicitors or firms of Auditors that legal documents have been executed securing amount of advance. (/) Building Societies shall certify to War Service Homes Division that comprehensive Insurance policies have been taken out in respect of each property for which an advance is sought. (g) An undertaking to be given to War Service Homes Division by each Society to carry out periodical inspections to ensure that individual homes are being maintained to preserve both the Society’s and the State’s security. (h) Annual certificates shall be supplied to War Service Homes Division by Auditors of Societies certifying that:— (i.) Titles and Mortgages are held covering all tjhe Societies’ advances; and (ii.) moneys advanced under the Agreement have been expended in accordance with the conditions of the Agreement. 14. War Service Homes Division operates with its own staff from the Border to Nambour North and to Dalby West and in other areas technical services may be performed for it by the Department of Works or in isolated areas by Shire Engineers or oth erj qualified persons. War Service Homes Division's Costs. 15. Ail costs incurred by War Service Homes Division in performing the duties referred to in this document shall be met by the State from the Home Builders’ Account. 195