Defence Force (Home Loans Assistance) Act 1990 (Cth)
This is a compilation of the
The notes at the end of this compilation (the
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register ( The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
For more information about any editorial changes made in this compilation, see the endnotes.
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
This Act may be cited as the
Defence Force (Home Loans Assistance) Act 1990 .
(1) Part 1 of this Act and Schedule 1 commence on the day on which this Act receives the Royal Assent.
(2) Subject to subsection (3), the remaining provisions of this Act (including Schedule 2) commence on a day or days to be fixed by Proclamation.
(3) If a provision referred to in subsection (2) does not commence under that subsection before 15 May 1991, it commences on that day.
In this Act, unless the contrary intention appears:
advanced amount means the amount advanced to a person by the Bank under a subsidised loan.
agreement means the agreement made between the Commonwealth and the Bank on 5 November 1990 (a copy of which is set out in Schedule 1), as that agreement is in force from time to time.
approved form means a form approved by the Secretary for the purpose of the provision in which the expression is used.
Bank means National Australia Bank Limited, or any person or body to whom it assigns all or any of its rights or obligations under the agreement.
basic service period means:
(a) in relation to a person covered by subparagraph (a)(i) of the definition of
eligible person —either:
(i) 5 years of effective full‑time service; or
(ii) 5 years of composite service; and
(b) in relation to a person covered by subparagraphs (b)(i), (ii) and (iii) of that definition—either:
(i) 5 years of effective full‑time service less the number of years of effective full‑time service completed before the person’s discharge; or
(ii) 5 years of composite service less the number of years of composite service completed before the person’s discharge; and
(c) in relation to a person covered by subparagraph (d)(i) of that definition—the number of years of effective full‑time service or composite service set out in Column 2 of the following table opposite the number of years specified in Column 1 that applies to the person:
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benchmark rate has the same meaning as in the agreement.
child : without limiting who is a child of a person for the purposes of this Act, someone is thechild of a person if:
(a) he or she is:
(i) a legally adopted child or a stepchild of the person; or
(ii) a child of the person within the meaning of the
Family Law Act 1975 ; and(b) he or she is:
(i) under 16; or
(ii) a student.
commencing day means the day on which Part 2 commences.
compensable disability means any physical or mental incapacity or disability suffered by a member (whether before, on or after the commencing day) in respect of which compensation was or is payable under:
(a) the
Safety, Rehabilitation and Compensation Act 1988 ; or(aa) the
Safety, Rehabilitation and Compensation (Defence‑related Claims) Act 1988 ; or(b) the
Veterans’ Entitlements Act 1986 ; or(ba) the
Military Rehabilitation and Compensation Act 2004 ; or(c) a law of the Commonwealth prescribed by the regulations.
composite service , in relation to a person who has completed a period of effective full‑time service and a period of statutory training obligation without a break between the periods, means a period of service that is worked out as follows:where:
statutory training obligation years means the years of statutory training obligation completed by a person.
statutory training factor is 0.625.
effective full‑time service years means the years of effective full‑time service completed by a person.Example 1: If a person completes 7 years of statutory training obligation and 1 year of effective full‑time service—the person’s years of composite service are:
Example 2: If a person completes 4 years of statutory training obligation and 1 year of effective full‑time service—the person’s years of composite service are:
Example 3: If a person completes 10 years of statutory training obligation and 2 years of effective full‑time service—the person’s years of composite service are:
continuous full‑time service means an unbroken period of full‑time service by a member in the Defence Force.Note: See section 7 for some special circumstances in which a period of full‑time service is taken to have been broken.
de facto partner has the meaning given by theActs Interpretation Act 1901 .
DSH Act means theDefence Service Homes Act 1918 .
effective full‑time service means a period of continuous full‑time service by a member, other than:
(a) a period longer than 21 consecutive days during which the member is:
(i) on leave of absence without pay; or
(ii) absent without leave; or
(iii) awaiting or undergoing trial for an offence of which the member is later convicted; or
(iv) undergoing detention or imprisonment; or
(b) in the case of a member who:
(i) is an officer of the Defence Force; and
(ii) on his or her appointment was enrolled as a student in a degree or diploma course at a university or other tertiary educational institution; and
(iii) was required by an appropriate authority in the Defence Force to continue those studies after appointment;
the period, determined by an appropriate authority in the Defence Force, during which the member cannot be treated as rendering effective full‑time service because of the need to engage in those studies or in activities connected with them.
eligible person means:
(a) a person who:
(i) is a non‑DSH member (other than an operational service member, a warlike service member, a rejoining member or a person covered by paragraph (b) or (d)); and
(ii) completes (whether before, on or after the commencing day) the basic service period applicable to the person; or
(b) a person who:
(i) on or after the commencing day, is discharged from the Defence Force because of a compensable disability; and
(ii) immediately before the discharge, was a non‑DSH member engaged or appointed for a period of less than 5 years; and
(iii) again becomes a member within 2 years after the day on which the discharge took effect; and
(iv) then completes the basic service period applicable to the person; or
(c) an incapacitated person; or
(d) a person who:
(i) having been an incapacitated person, again becomes a member within 2 years after the day on which his or her discharge as an incapacitated person took effect; and
(ii) then completes the basic service period applicable to the person; or
(e) a rejoining member; or
(f) an operational service member; or
(fa) a warlike service member; or
(g) a person (other than an incapacitated person) who:
(i) before, on or after the commencing day resigns, retires or is discharged from the Defence Force; and
(ii) immediately before the resignation, retirement or discharge was an operational service member, a warlike service member or a non‑DSH member covered by paragraph (a), (b), (d), (e) or (f); and
(iii) has not again become a member; or
(h) a person:
(i) who is a member of the Reserves; and
(ii) who completes the training period applicable to the person; and
(iii) to whom the DSH Act does not apply.
entitled person means a person who is the holder of an entitlement certificate that is in force.
entitlement certificate means a certificate issued under Part 2.
finishing day :
(a) for the purpose of subsection 12(6), in relation to the issue of an entitlement certificate to a person—means:
(i) if (at the time the decision is made in relation to the issue of an entitlement certificate) the person is an eligible person who is a member of the Defence Force (other than an operational service member)—30 June 2008; or
(ii) in any other case—30 June 2010; and
(b) for the purpose of subsection 15(3)—means 30 June 2010.
government authority means an authority (including a local governing body) established for a public purpose by or under a law of the Commonwealth, or of a State or Territory.
holder , in relation to an entitlement certificate, means the person to whom the certificate was issued.
house means a dwelling‑house and includes a single unit held under a strata title system, but does not include:
(a) a house that is unfit for anyone to live in or that is the subject of a condemnation order; or
(b) a house that is to be, or has been, compulsorily acquired by the Commonwealth or a State or Territory, or by a government authority; or
(c) a building that is a block of flats, or a flat that is not held under a strata title system; or
(d) a caravan or any kind of mobile house.
incapacitated person means:
(a) a person who, on or after the commencing day, is discharged from the Defence Force because of a compensable disability; or
(b) a person:
(i) whose first service in the Defence Force began after 14 May 1985; and
(ii) who is not covered by paragraph (ga) of the definition of
Australian Soldier in subsection 4(1) of the DSH Act; and(iii) who, before the commencing day, was discharged from the Defence Force because of a compensable disability;
and who, immediately before the discharge:
(c) had been a non‑DSH member engaged or appointed for a period that would have allowed the person to complete at least 5 years of effective full‑time service or composite service; and
(d) had completed less than 16 years of effective full‑time service or composite service.
intestacy law means a law of, or in force in, a State or Territory that provides for the devolution of the estate of a person who dies intestate.
member means a member of the Defence Force.
Middle‑East operational area means the area comprising the following countries and sea areas:
(a) Kuwait, Iraq, Bahrain, Oman, Qatar, Saudi Arabia, the United Arab Emirates and the Island of Cyprus;
(b) the sea areas contained within the Gulf of Suez, the Gulf of Aqaba, the Red Sea, the Gulf of Aden, the Persian Gulf and the Gulf of Oman;
(c) the sea area contained within the Arabian Sea north of the boundary formed by joining each of the following points to the next:
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(d) the sea areas contained within the Suez Canal and the Mediterranean Sea east of 30°E.
non‑DSH member means:
(a) a member whose first service in the Defence Force began after 14 May 1985 and who is not covered by paragraph (ga) of the definition of
Australian Soldier in subsection 4(1) of the DSH Act; or(b) a member:
(i) whose first service in the Defence Force began on or before 14 May 1985; or
(ii) whose first service in the Defence Force began after 14 May 1985 and who is covered by paragraph (ga) of the definition of
Australian Soldier in subsection 4(1) of the DSH Act;and who has made an election under section 4BA of the DSH Act that has not been revoked.
operational service member means a person who is an operational service member under subsection 3A(1) or (3).
parent : without limiting who is a parent of a person for the purposes of this Act, someone is the parent of a person if the person is his or her child because of the definition ofchild in this subsection.
rejoining member means a person who:
(a) before, on or after the commencing day resigns, retires or is discharged from the Defence Force; and
(b) immediately before the resignation, retirement or discharge was an eligible person; and
(c) again becomes a member within 2 years after the day on which the resignation, retirement or discharge took effect.
Reserves has the same meaning as in theDefence Act 1903 .
reviewable decision means a decision:
(a) refusing to issue an entitlement certificate; or
(b) cancelling an entitlement certificate; or
(ba) refusing to make a determination under subsection 4(1A); or
(c) refusing to grant approval under section 15 or 18; or
(d) that subsidy is not payable under subsection 20(2); or
(e) giving a notice under section 27; or
(f) refusing an application under section 31 or 32; or
(g) revoking an approval; or
(h) refusing to extend the period for making an application under section 33.
Secretary means the Secretary of the Department.
statutory training obligation means a period of training in a 12 month period that has been rendered by a person because the person is bound to render that training under theDefence Act 1903 , theNaval Defence Act 1910 or theAir Force Act 1923 or in accordance with regulations made under theDefence Act 1903 , theNaval Defence Act 1910 or theAir Force Act 1923 .
student means a person who is:
(a) at least 16 but under 25; and
(b) receiving full‑time education at a school or college, or at a university or other tertiary education establishment.
subsidised borrower means a person who:
(a) is liable, either alone or jointly with another person, to pay the outstanding amount of a subsidised loan; and
(b) is an entitled person, or was an entitled person before the first payment of subsidy was made on the loan.
subsidised loan has the same meaning as in the agreement.
subsidy means a subsidy payable under Part 3 by the Commonwealth to the Bank on a loan by the Bank, being a monthly amount calculated under this Act and payable, for the benefit of the borrower, in the manner provided in the agreement.
subsidy period , in relation to a person, means the period to which the person is entitled under section 23.
surviving spouse or de facto partner , in relation to a deceased person, means a person who was the spouse or de facto partner of the deceased person immediately before the deceased person’s death.Note: See also section 8.
training period , in relation to a person covered by paragraph (h) of the definition ofeligible person , means:
(a) 5 years of effective full‑time service; or
(b) a continuous period of 8 years of statutory training obligation; or
(c) 5 years of composite service.
warlike service means duty declared under subsection 3C(1) to be warlike service.
warlike service member has the meaning given by section 3B.
(1) A person is an operational service member for the purposes of this Act if:
(a) the person is a member; and
(b) the person is a non‑DSH member; and
(c) the person is allotted for duty anywhere within the Middle‑East operational area; and
(d) the duty includes duty sometime during the period that starts on 2 August 1990 and ends on 9 June 1991.
(2) An allotment for duty:
(a) may be taken into account for the purposes of subsection (1) even though it takes effect retrospectively; and
(b) may be taken into account for the purposes of subsection (1) whether it occurs before or after the commencing day; and
(c) will not be taken into account for the purposes of subsection (1) unless it is made by written instrument signed by the Vice Chief of the Defence Force.
(3) A person is also an operational service member for the purposes of this Act if:
(a) the person is a member; and
(b) the person is a non‑DSH member because of an election under section 4BA of the DSH Act; and
(c) the person is an Australian Soldier for the purposes of the DSH Act because of paragraph (a), (b), (c), (g) or (ga) of the definition of
Australian Soldier in subsection 4(1) of the DSH Act.Note 1: for paragraph (3)(b) see paragraph (b) of the definition of
non‑DSH member in section 3 of this Act.Note 2: the people referred to in paragraph (3)(c) served in operational areas in military conflicts before the Gulf conflict.
(1) A warlike service member is a member who:
(a) is a non‑DSH member; and
(b) has been allotted for duty declared under subsection 3C(1) to be warlike service; and
(c) has performed some or all of that duty.
(2) An allotment for duty:
(a) may be taken into account for the purposes of subsection (1) even though it takes effect retrospectively; and
(b) may be taken into account for those purposes whether it occurs before or after the commencement of this section; and
(c) will not be taken into account for those purposes unless it is made by written instrument signed by the Vice Chief of the Defence Force.
(1) The Minister may, by legislative instrument, declare duty to be warlike service for the purposes of this Act.
(2) A declaration under subsection (1):
(a) must be in writing; and
(b) may take effect retrospectively; and
(c) may relate to duty even if it was performed before the commencement of this section.
(3) The Minister may, by legislative instrument, revoke or vary a declaration under subsection (1).
(4) An instrument under subsection (3) may take effect retrospectively, except in so far as it results in duty ceasing to be warlike service for the purposes of this Act.
(1) An eligible person who is not a member stops being an eligible person:
(a) if he or she is not an incapacitated person referred to in paragraph (b) of the definition of
incapacitated person in section 3—at the end of 2 years after the day on which his or her resignation, retirement or discharge from the Defence Force took effect; or(b) if he or she is such an incapacitated person—on 1 December 1994.
(1A) However, the Secretary may determine in writing that a person covered by paragraph (1)(a) continues to be an eligible person for a specified period beyond the period of 2 years mentioned in that paragraph, if:
(a) the person is an incapacitated person; and
(b) the person satisfies the Secretary that the compensable disability that caused the person’s discharge also caused, or contributed to, the person’s failure to apply for an entitlement certificate within that 2 year period.
(1B) An application for a determination under subsection (1A) must be in writing.
(2) Subsection (1) does not apply to a person who has been an operational service member under subsection 3A(1).
(1) For the purposes of paragraphs 15(1)(b) and 20(2)(d), a person who is a part owner of a house is taken to own the house if:
(a) the person owns an interest in the house that is more than a half interest; or
(b) the person owns, together with his or her spouse, de facto partner or child or children, an interest in the house that is more than a half interest; or
(c) the person owns an interest in the house that, when added to any other interest in the house owned separately by the person’s spouse, de facto partner or child or children, is more than a half interest.
(2) In this section:
interest includes a legal or equitable interest and a life interest, but does not include an interest as lessee unless the relevant lease is a Crown lease for a term of more than 50 years.
For the purposes of this Act, the members of a person's family are:
(a) the person’s spouse or de facto partner; and
(b) a child of the person or of the person’s spouse or de facto partner; and
(c) a parent of the person, or of the person’s spouse or de facto partner, who is ordinarily dependent on the person.
(1) Without otherwise limiting the meaning of
continuous full‑time service as defined in section 3, a period of full‑time service by a member in the Defence Force is taken to be broken, for the purposes of this Act, if:
(a) the member is absent on leave without pay (other than prescribed leave) for longer than 12 consecutive months; or
(b) in connection with a transfer of the member between 2 arms of the Defence Force, the member stops serving in one such arm and there is a delay of more than 21 consecutive days before the member starts serving in the other.
(2) Paragraph (1)(b) does not apply if the delay was caused by the processing of the transfer by the relevant authorities in the Defence Force and was beyond the member's control.
(3) A period of full‑time service by a member of the Defence Force is not taken to have been broken by a period described in paragraph (a) or (b) of the definition of
effective full‑time service in section 3.
(1) If a deceased person has more than one surviving spouse or de facto partner, the surviving spouse or de facto partner who was living with the person immediately before his or her death is taken, for the purposes of Division 1 of Part 2 and paragraph 29(h), to be the person’s sole surviving spouse or de facto partner.
(2) For the purposes of subsection (1), the person is taken to have been living with a spouse or de facto partner immediately before the death of the person if they were not living together at that time only because of:
(a) a temporary absence from each other; or
(b) illness or infirmity of either or both of them.
The agreement, as executed on 5 November 1990, and its execution on behalf of the Commonwealth, are approved.
(1) A person may apply to the Secretary for an entitlement certificate.
(2) An application must be in writing, in the approved form and must be made in accordance with the agreement.
(3) An application by a person who is not an eligible person but who is the surviving spouse or de facto partner of a deceased eligible person must be made within 2 years after:
(a) if the eligible person was not a member—his or her resignation, retirement or discharge from the Defence Force took effect; or
(b) in any other case—the death of the eligible person.
(4) Subsection (3) does not apply if the deceased eligible person was, or had been, an operational service member under subsection 3A(1).
(1) Subject to this Act, the Secretary must, on application by a person for an entitlement certificate, issue to the person an entitlement certificate, in the approved form, certifying that the person is an entitled person.
(2) An entitlement certificate remains in force, unless it is sooner cancelled, until:
(a) if a subsidised loan is made to the entitled person by the Bank within 12 months after the day on which the certificate is issued—the first payment of subsidy is made on the loan; or
(b) in any other case—the end of the 12 months period mentioned in paragraph (a).
(1) The Secretary must not issue an entitlement certificate to a person unless satisfied that:
(a) the person is not the holder of an entitlement certificate that is in force; and
(b) the person:
(i) is an eligible person, or was an eligible person when he or she applied for the certificate; or
(ii) is the surviving spouse or de facto partner of such an eligible person; and
(c) if the person is a member (other than an operational service member, a warlike service member, a rejoining member or a person covered by paragraph (h) of the definition of
eligible person )—the person has completed 6 months of effective full‑time service after the end of the person’s basic service period; and(d) if the person is an operational service member under subsection 3A(3)—the person has completed 6 months of effective full‑time service; and
(e) if the person is a rejoining member who is not entitled to a subsidy period when he or she becomes a rejoining member—the person has completed 6 months of effective full‑time service after becoming a rejoining member; and
(f) the person’s subsidy period has not ended; and
(g) the person has not already been issued with an entitlement certificate on or after 1 July 2008.
(2) The Secretary must not issue an entitlement certificate to an eligible person who is not a member, otherwise than on an application made under subsection (4) or (5), if:
(a) 2 or more entitlement certificates were previously issued to the person; and
(b) at least one of those certificates was issued after the day on which the person’s resignation, retirement or discharge from the Defence Force took effect.
(3) The Secretary must not issue an entitlement certificate to a person who is a surviving spouse or de facto partner of the kind mentioned in subsection 10(3) (otherwise than on an application under subsection (4) of this section) if:
(a) where subsection 30(6) applies in relation to the person—one entitlement certificate was previously issued to the person within the period applicable to the person under subsection 10(3); or
(b) in any other case—2 entitlement certificates were previously issued to the person within that period.
(4) In spite of anything else in this Division, but subject to subsection (5), where a subsidised loan to a person who was an entitled person is discharged as a result of:
(a) the destruction of the house to which the loan relates; or
(b) the compulsory acquisition of the property to which the loan relates by the Commonwealth or a State or Territory, or by a government authority; or
(c) the sale or transfer of the property to which the loan relates under an order of a court, other than an order made under the
Bankruptcy Act 1966 or in proceedings for the recovery of a judgment debt;the Secretary must issue to the person an entitlement certificate if the person applies for the certificate within 12 months after the loan is discharged.
(5) In spite of anything else in this Division, where:
(a) a subsidised loan is made to a person; and
(b) the person is discharged from the Defence Force on or after the commencing day because of any compensable disability suffered by the person (whether or not the person is an incapacitated person); and
(c) the subsidised loan is discharged as a result of the sale or transfer of the property to which the loan relates;
the Secretary must issue to the person an entitlement certificate if, and only if:
(d) the person applies for the certificate within 12 months after the loan is discharged; and
(e) the Secretary is satisfied that the sale or transfer was reasonably necessary as a result of that disability.
(6) An entitlement certificate must not be issued after the finishing day.
(1) Where the Secretary is satisfied that:
(a) an entitlement certificate was issued to a person as a result of a false or misleading statement made by the person; or
(b) an entitlement certificate was issued to a person who, when it was so issued, was not entitled to it;
the Secretary may, by written notice of cancellation given to the person, cancel the certificate.
(2) If the Secretary is satisfied that a certificate issued to a person by the Secretary contains an error or omission, the Secretary may, by notice in writing:
(a) vary the certificate; or
(b) revoke the certificate and substitute another;
and, where the Secretary does so, the varied or substituted certificate has effect as if it had been issued at the time the original certificate was issued.
(3) If the Secretary cancels a certificate under subsection (1), the Secretary must give a copy of the notice of cancellation to the Bank.
(4) If the Secretary varies a certificate, or revokes a certificate and substitutes another, under subsection (2), the Secretary must give copies of the notice of variation or of the notice of revocation and substitution, as the case requires, to the person concerned and to the Bank.
(1) A subsidised borrower who:
(a) has obtained an advanced amount of less than $80,000; and
(b) wishes to increase that amount;
may apply to the Secretary for approval of the payment of subsidy in respect of the increase.
(2) An application must be in the approved form.
(3) An application by a person who has resigned, retired or been discharged from the Defence Force (other than a rejoining member) must be made within 2 years after the day on which the resignation, retirement or discharge took effect.
(3A) Subsection (3) does not apply to a person who has been an operational service member under subsection 3A(1).
(4) An application by a person who is not an eligible person but who is the surviving spouse or de facto partner of a deceased eligible person must be made within 2 years after:
(a) if the eligible person was not a member—his or her resignation, retirement or discharge from the Defence Force took effect; or
(b) in any other case—the death of the eligible person.
(5) Subsection (4) does not apply if the deceased eligible person was, or had been, an operational service member under subsection 3A(1).
(1) On receipt of an application for approval under section 14, the Secretary must grant the application if, and only if, the Secretary is satisfied that:
(a) the person’s subsidy period has not ended; and
(b) the person, or the person’s spouse or de facto partner, is not the owner of a house in Australia (other than that in respect of which the loan was made) being a house acquired after the person obtained the subsidised loan.
Note: See section 5.
(2) Subsidy does not become payable in relation to an increase in an advanced amount under a subsidised loan to a person unless or until the Secretary is satisfied that the amount of the increase has been used by the person:
(a) to enlarge, renovate or repair the house in respect of which the loan was made, or to construct any permanent improvements on the land on which the house is built; or
(b) to discharge another loan used by the person for a purpose of the kind mentioned in subparagraph 20(2)(g)(i), (ii), (iii), (iv) or (v).
(3) The Secretary must not grant an approval after the finishing day.
(4) Where the Secretary approves the payment of subsidy in relation to an increase in an advanced amount, the Secretary must cause a notice of approval, in the approved form, to be sent to the applicant and the Bank.
(5) An approval under this section stops having any effect if the increase to which it relates is not obtained within 12 months after the approval is granted.
(1) Where the Secretary is satisfied that an approval was granted to a person as a result of a false or misleading statement made by the person, the Secretary may, by written notice given to the person, revoke the approval.
(2) The Secretary must cause a copy of a revocation to be given to the Bank.
(3) Where an approval is revoked under this section it is taken never to have been granted.
(1) Where:
(a) a subsidised borrower who is the sole owner of the property to which the subsidised loan relates wishes, by a sale or transfer of part of his or her interest in the property, to own the property together with his or her spouse or de facto partner as joint tenants; or
(b) a subsidised borrower who owns the property to which the subsidised loan relates together with his or her spouse or de facto partner, as joint tenants, wishes, by a purchase or transfer of the spouse’s or de facto partner’s interest, to become the sole owner of the property;
the borrower may apply to the Secretary for approval of the continued payment of subsidy in relation to the property after the sale, purchase or transfer takes place.
(2) An application must be in the approved form and given to the Secretary at any time before the relevant sale, purchase or transfer takes place.
(1) On receipt of an application under section 17, the Secretary must grant the approval sought if, and only if, satisfied that:
(a) the proposed sale, purchase or transfer has not been ordered by the Federal Circuit and Family Court of Australia (Division 1); and
(b) as a result of the proposed sale, purchase or transfer, the property concerned will be owned by the subsidised borrower, or by the subsidised borrower and his or her spouse or de facto partner as joint tenants, and will not be owned by any other person.
(2) Where the Secretary grants an approval under this section, the Secretary must cause a notice of approval, in the approved form, to be sent to the applicant and to the Bank.
(1) Where the Secretary is satisfied that an approval was granted to a person as a result of a false or misleading statement made by the person, the Secretary may, by written notice given to the person, revoke the approval.
(2) The Secretary must cause a copy of a revocation to be given to the Bank.
(3) Where an approval is revoked under this section it is taken never to have been granted.
(1) Subject to this Part, subsidy is payable to the Bank on a loan made by the Bank in accordance with the agreement.
(2) Subsidy does not become payable on a loan to a person unless and until the Secretary is satisfied that:
(a) the person is an entitled person; and
(b) the person’s subsidy period has not ended; and
(c) each borrower has consented in writing to the recovery by the Commonwealth in accordance with the agreement and this Act of amounts to which subclauses 8.2 and 8.4 of the agreement apply; and
(d) the person, or the person’s spouse or de facto partner, is not the owner of any house in Australia other than that in respect of which the loan was made; and
Note: See section 5.
(e) the house in respect of which the loan was made:
(i) is owned by the person, or by the person and the person’s spouse or de facto partner as joint tenants (whether or not the spouse or de facto partner is also an entitled person) and is not owned by any other person; and
(ii) is used by the person as a home for the person and members of his or her family (if any); and
(iii) is suitable for use as such a home, having regard to all the relevant circumstances, including the person’s financial position, the needs of the members of his or her family (if any) and the location of the house; and
(iv) is not ordinarily used for the purpose of carrying on a business, trade or profession; and
(f) except where the agreement provides otherwise, the loan is secured by a first mortgage over the property to which it relates; and
(g) the loan has been used to enable the person to do any of the following things:
(i) to buy land and build the house to which the loan relates on the land;
(ii) to build that house on land already owned by the person;
(iii) to buy that house together with the land on which it is built;
(iv) if that house was partly built and already owned by the person—to complete the house;
(v) if that house was complete and already owned by the person—to enlarge, renovate or repair the house, or to construct any permanent improvements on the land on which the house is built;
(vi) to discharge another loan used by the person for a purpose mentioned in subparagraph (i), (ii), (iii), (iv) or (v).
(3) Subsidy is not payable in respect of a house situated outside Australia.
(4) Subsidy is not payable on a loan to a person in respect of a house if:
(a) subsidy was payable on a previous loan to the person in respect of the same house; and
(b) that subsidy was cancelled under section 28 at the person’s request; and
(c) more than 12 months has elapsed since subsidy stopped being payable as a result of that cancellation.
(5) Subject to this Part, subsidy may be payable on 2 or more successive loans by the Bank to the same subsidised borrower, whether in respect of the same house or different houses.
(6) For the purposes of paragraphs (2)(e) and (2)(g), but without limiting their meaning:
(a) a person is taken to own a house in respect of which a loan is made if the person has an interest in the house as a lessee under a Crown lease granted for a term of more than 50 years; and
(b) a person is taken to have bought a house if the person has bought an interest in the house as such a lessee.
(1) This section applies if subsidy (
2008 Act subsidy ) is, or has ever been, payable to a person under theDefence Home Ownership Assistance Scheme Act 2008 .(2) Subsidy is not payable on a loan to the person under this Act on or after the earliest day the 2008 Act subsidy became payable.
(1) Subject to this Part, the amount on which subsidy is payable is:
(a) the advanced amount; or
(b) $80,000;
whichever is less.
(2) If:
(a) a person obtains an advanced amount of less than $80,000; and
(b) the person later borrows a further amount by increasing that amount; and
(c) the payment of subsidy in respect of the increase is approved under section 15;
then, subject to this Part, the amount on which subsidy is payable is:
(d) the total of the borrowed amounts; or
(e) $80,000;
whichever is less.
(1) Subsidy is not payable on a loan of less than $10,000.
(2) Where an advanced amount is increased by a further borrowed amount of less than $10,000, subsidy is not payable in respect of the further amount unless the total of the borrowed amounts is at least $80,000.
(1) Subject to this Part, subsidy is payable on a subsidised loan to an eligible person while the person remains entitled to a subsidy period.
(2) An eligible person is at any particular time entitled to a subsidy period, being a period that at that time equals the person’s entitlement period less the person’s used subsidy period (if any).
(3) In this section:
entitlement period means:
(a) in relation to a member (other than an operational service member, a warlike service member or a rejoining member):
(i) the number of completed years of subsidy service served by the member after completing his or her basic service period; or
(ii) 20 years;
whichever is less; or
(b) in relation to a person who is or has been an operational service member under subsection 3A(1):
(i) if the member has served 16 completed years or less of subsidy service—16 years; or
(ii) if the member has served more than 16, but not more than 20, completed years of subsidy service—the number of completed years of subsidy service served by the member; or
(iii) if the member has served more than 20 completed years of subsidy service—20 years; or
(ba) in relation to a member who is an operational service member under subsection 3A(3):
(i) if the member has served 20 completed years or less of subsidy service—the number of completed years of subsidy service served by the member; or
(ii) if the member has served more than 20 completed years of subsidy service—20 years; or
(bb) in relation to a person who is or has been a warlike service member:
(i) the total of:
(A) the number of completed years (if any) of subsidy service served by the person; and
(B) the number of additional years of subsidy to which the person is entitled under subsection (5); or
(ii) 25 years;
whichever is less; or
(c) in relation to a rejoining member who is a subsidised borrower 2 years after the day on which his or her resignation, retirement or discharge from the Defence Force took effect:
(i) the number of completed years of subsidy service served by the person after completing the basic service period (if any) that last applied to the person before he or she became a rejoining member; or
(ii) 20 years;
whichever is less; or
(d) in relation to a rejoining member, other than a rejoining member covered by paragraph (c):
(i) the period equal to the number of completed years of subsidy service served by the person:
(A) after he or she became a rejoining member; and
(B) after completing the basic service period (if any) that last applied to the person before he or she became a rejoining member;
plus the total period (if any) during which subsidy was paid on any subsidised loan to the person before he or she became a rejoining member; or
(ii) 20 years;
whichever is less; or
(e) in relation to an incapacitated person:
(i) the number of completed years of subsidy service served by the person; or
(ii) 10 years;
whichever is less; or
(f) in relation to any other eligible person who is not a member:
(i) the number of completed years of subsidy service served by the person after completing the basic service period (if any) that last applied to the person before the day on which his or her resignation, retirement or discharge from the Defence Force took effect; or
(ii) 20 years;
whichever is less.
rejoining member does not include a person who has been an operational service member under subsection 3A(1) or has been a warlike service member.
subsidy service means:
(a) effective full‑time service; or
(b) statutory training obligation; or
(c) statutory training obligation added to effective full‑time service.
used subsidy period , in relation to a person, means the total period during which subsidy has been paid on any subsidised loan to the person.
(4) If, but for this subsection, a person would have 2 or more entitlement periods, the person’s entitlement period is taken to be the longer or longest of those periods.
(5) A person who is or has been a warlike service member is entitled to additional years of subsidy in accordance with the following table:
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Examples: 1. A person who has performed a total of 4 days warlike service is entitled to 2 additional years of subsidy.
2. A person who has performed a total of 3 months and 6 days warlike service is entitled to 3 additional years of subsidy.
3. A person who has performed a total of 9 months and one day warlike service is entitled to 5 additional years of subsidy.
(6) If a warlike service member is repatriated from warlike service because of wounds, injury or illness, he or she is taken for the purposes of subsection (5) to have continued to perform that warlike service until the end of:
(a) the period for which, in the opinion of the Secretary, the member could reasonably have expected at the time of repatriation to be posted on that warlike service, but for the circumstances leading to the repatriation; or
(b) the period for which the unit to which the member was attached performed that warlike service;
whichever ended first.
(7) In forming an opinion for the purposes of paragraph (6)(a), the Secretary must have regard to:
(a) any information given to the member about the expected length of the posting;
(b) any information given to the commander of the unit about the expected length of the posting of members of that unit;
(c) any other relevant matter.
(1) Subject to this Part, subsidy is payable on a subsidised loan to the surviving spouse or de facto partner of a deceased eligible person while the surviving spouse or de facto partner remains entitled to a subsidy period.
(2) Subject to subsection (3), the surviving spouse or de facto partner of a deceased eligible person is at any particular time entitled to a subsidy period that at that time is the same as the period that would have applied at that time under section 23 if the loan had been made to the eligible person.
(3) If the deceased is a prescribed member, subsection (2) applies to the surviving spouse or de facto partner as if the deceased had been an incapacitated person immediately before his or her death.
(4) In this section:
prescribed member means a deceased member:
(a) who had completed less than 16 years of effective full‑time service or composite service immediately before his or her death; and
(aa) who was neither an operational service member nor a warlike service member; and
(b) in respect of whose death compensation is payable under:
(i) the
Safety, Rehabilitation and Compensation Act 1988 ; or(iaa) the
Safety, Rehabilitation and Compensation (Defence‑related Claims) Act 1988 ; or(ia) the
Military Rehabilitation and Compensation Act 2004 ; or(ii) the
Veterans’ Entitlements Act 1986 ; or(iii) a law of the Commonwealth prescribed by the regulations.
surviving spouse or de facto partner does not include a surviving spouse or de facto partner who is an eligible person.
(1) Each monthly amount of subsidy is the amount that results from working out the relevant regular monthly repayment (
RMR ) amount under subsection (2) and then using that amount in the formula set out in subsection (3).(2) The RMR amount must be worked out using the formula:
where:
BR is the benchmark rate.
LA (loaned amount ) is the amount on which subsidy is payable.
(3) The monthly subsidy amount must be worked out using the formula:
where:
LA has the same meaning as in subsection (2).
RMR is the amount worked out under that subsection.
(1) Where a subsidised loan is made to 2 entitled persons jointly, each of whom is the spouse or de facto partner of the other, then:
(a) while both of them remain entitled to a subsidy period, this Act applies in relation to the loan as if the references in paragraphs 14(1)(a), 21(1)(b) and 21(2)(e), and in subsection 22(2), to $80,000 were references to $160,000; and
(b) when only one of them remains entitled to a subsidy period, paragraph (a) stops applying and the other provisions of this Act thereafter apply in relation to the loan as if he or she were the sole subsidised borrower.
(2) If, when paragraph (1)(a) applies in relation to a loan, one of the spouses or de facto partners dies:
(a) this Act continues to apply in relation to the loan in the manner mentioned in that paragraph until:
(i) the end of the subsidy period of the deceased spouse or de facto partner as at the date of death; or
(ii) the end of the subsidy period to which the surviving spouse or de facto partner is separately entitled;
whichever happens first; and
(b) when one of those things happens, paragraph (a) stops applying and the other provisions of this Act thereafter apply in relation to the loan as if the surviving spouse or de facto partner were the sole subsidised borrower.
(1) Where the Commonwealth is paying subsidy on a loan to a person and the Secretary is satisfied that:
(a) the relevant entitlement certificate was issued to the person as a result of a false or misleading statement by the person; or
(b) when the certificate was issued to the person, the person was not entitled to it; or
(c) all or any of the criteria set out in subsection 20(2) were not in fact met, although the subsidy became payable on the basis that the Secretary was, at the time the subsidy became so payable, satisfied that they had been met;
the Secretary may, by written notice given to the person, notify the person that subsidy will not be paid on the loan on or after the date of the notice.
(2) Where:
(a) the Commonwealth is paying subsidy on an increase on an advanced amount under a subsidised loan to a person; and
(b) the Secretary is satisfied that the approval under section 15 relating to the increase was granted as a result of a false or misleading statement by the person;
the Secretary may, by written notice given to the person, notify the person that subsidy will not be paid in respect of the amount of the increase on or after the date of the notice.
(3) The Secretary must cause a copy of a notice to be given to the Bank in accordance with the agreement.
(4) Where the Secretary gives a notice under subsection (1) in relation to subsidy on a loan:
(a) subsidy stops being payable on that loan on and after the date of the notice; and
(b) all amounts of subsidy paid on the loan before that date are taken, for the purposes of section 31, to be amounts not payable under this Act.
(5) Where the Secretary gives a notice under subsection (2) in relation to subsidy on an increased amount of a loan:
(a) subsidy stops being payable on the amount of the increase on and after the date of the notice; and
(b) all amounts of subsidy paid on the amount of the increase before that date are taken, for the purposes of section 31, to be amounts not payable under this Act.
(1) A subsidised borrower may, by a signed request in the approved form, ask the Secretary to cancel subsidy on the borrower’s subsidised loan.
(2) Only one request may be made in respect of any one subsidised loan.
(3) On receipt of a request, the Secretary must, by notice of cancellation given to the subsidised borrower, cancel the subsidy accordingly.
(4) The Secretary must cause a copy of a notice of cancellation to be given to the Bank in accordance with the agreement.
(5) Where subsidy on a subsidised loan is cancelled under this section, subsidy stops being payable on the loan on and after:
(a) the date of the notice; or
(b) if a later date is specified in the notice—that later date.
Subject to sections 27 and 28, subsidy stops being payable on a subsidised loan to a person who is a subsidised borrower when any of the following things happen:
(a) all outstanding amounts due under the loan are paid;
(b) the person’s subsidy period ends;
(c) if the property to which the loan relates is owned by the person and his or her spouse or de facto partner as joint tenants—the joint tenancy is converted into a tenancy in common;
(d) the property to which the loan relates is transferred under an order of the Federal Circuit and Family Court of Australia (Division 1) to the person’s spouse or de facto partner, or former spouse or former de facto partner, or to the person and his or her former spouse or former de facto partner, whether as joint tenants or as tenants in common;
(e) the property to which the loan relates, or any interest in it, is sold or transferred to another person (other than under an order of the Federal Circuit and Family Court of Australia (Division 1)) without an approval under section 18;
(f) the person (being a person to whom subsection 30(6) applies) dies;
(g) the person (being a person who is or was an eligible person) dies and does not have a surviving spouse or de facto partner;
(h) the person (being a person who is or was an eligible person) dies and the property to which the loan relates, or any interest in it, is sold or transferred under the person’s will or an intestacy law to someone other than the person's surviving spouse or de facto partner.
(1) Where:
(a) a prescribed borrower dies and has a surviving spouse or de facto partner; and
(b) the house to which the subsidised loan relates was, immediately before the borrower’s death, owned jointly by the borrower and the surviving spouse or de facto partner;
then, subject to section 29, subsidy continues to be payable on the loan.
(2) Where:
(a) a prescribed borrower dies and has a surviving spouse or de facto partner; and
(b) the house to which the subsidised loan relates was, immediately before the borrower’s death, owned solely by the borrower;
subsidy on the loan is suspended until the house is sold or transferred under the borrower’s will or an intestacy law.
(3) If:
(a) subsidy is suspended; and
(b) the house to which the subsidised loan relates is transferred under the borrower’s will or an intestacy law to a surviving spouse or de facto partner of the borrower who was living with the borrower immediately before the borrower’s death; and
(c) the house is so transferred subject to the loan;
then, subject to section 29, the suspension ends and subsidy is payable on the loan on and after the day on which the suspension took effect.
(4) If:
(a) subsidy is suspended; and
(b) the house to which the subsidised loan relates is transferred under the borrower’s will or an intestacy law to a surviving spouse or de facto partner; and
(c) the house is so transferred subject to the loan; and
(d) no surviving spouse or de facto partner of the borrower was living with the borrower immediately before the borrower’s death;
then, subject to section 29, the suspension ends and subsidy is payable on the loan on and after the day on which the suspension took effect.
(5) Where subsidy is suspended, the Secretary must cause a written notice of the suspension to be given to the Bank in accordance with the agreement.
(6) When subsidy is payable on a loan under this section, the relevant surviving spouse or de facto partner is to be treated, for the purposes of this Act, as if he or she were the subsidised borrower in relation to the loan.
(7) In this section:
prescribed borrower means a subsidised borrower who is or was an eligible person.
(1) Where:
(a) an amount has been paid to the Bank by the Commonwealth by way of subsidy on a loan to a person; and
(b) the amount is not payable under this Act; and
(c) neither subclause 8.1 nor 8.5 of the agreement applies in relation to the amount; and
(d) the Bank is not required to pay the due amount to the Commonwealth under subclause 8.2 of the agreement;
the due amount is payable to the Commonwealth by the person.
(2) Where:
(a) the Bank sells any property by way of enforcing a mortgage securing a loan to a person; and
(b) as a result of the sale, the Commonwealth is required to pay an amount to the Bank under subclause 8.4 of the agreement;
an amount equal to that amount is payable to the Commonwealth by the person.
(3) Where:
(a) the Bank sells any property that is, or was at any time, subject to a subsidised loan to a person; and
(b) the sale is by way of enforcing a mortgage securing that loan or another loan to the person; and
(c) a due amount is payable under this section to the Commonwealth by the person;
the Bank must pay to the Commonwealth an amount equal to:
(d) the part of the proceeds of the sale that, apart from this subsection, would have been payable by the Bank to the person; or
(e) the unpaid part of the due amount;
whichever is less.
(4) A payment by the Bank to the Commonwealth under subsection (3) is, to the extent of the payment, a discharge of any liability of the person referred to in that subsection to the Commonwealth and of any liability of the Bank to the person under the mortgage or the loan agreement.
(5) Where:
(a) an amount is payable to the Commonwealth under this section by a person other than the Bank; and
(b) the person does not pay the amount;
the amount may be recovered from the person in a court of competent jurisdiction as a debt due to the Commonwealth.
(6) Where:
(a) a due amount is payable to the Commonwealth under this section by a person other than the Bank; and
(b) the Secretary is satisfied, on written application by the person, that payment of the due amount in full would cause the person, or the person’s family, unreasonable financial hardship;
the Secretary may, by notice in writing given to the person, reduce the due amount by such amount as the Secretary specifies in the notice and this section applies in relation to the reduced amount as if it were the due amount.
(7) The Secretary must cause a copy of a notice under subsection (6) to be given to the Bank in accordance with the agreement.
(8) In this section:
due amount means an amount equal to the amount incorrectly paid to the Bank by way of subsidy on a loan to a person plus interest on that amount at the benchmark rate from time to time applicable from the day the incorrect payment was made until payment is made to the Commonwealth under the agreement or this section, as the case requires.
(1) Subject to this section, the Secretary may, on behalf of the Commonwealth, decide in writing:
(a) to write off an amount payable to the Commonwealth by a person under section 31; or
(b) to waive the right of the Commonwealth to recover from a person the whole or part of such an amount; or
(c) to allow such an amount to be paid by such instalments as are specified in the decision.
(2) The Secretary may make a decision under subsection (1) on his or her own initiative or on written application by the person concerned.
(3) The Secretary must not make a decision under paragraph (1)(a), (b) or (c) on the application of a person unless satisfied that a refusal of the application would cause the person, or the person’s family, unreasonable financial hardship.
(4) A decision under subsection (1) takes effect:
(a) on the day specified in the decision, being the day on which the decision is made or any day before or after that day; or
(b) if no day is so specified—on the day on which the decision is made.
(5) In this section:
person does not include the Bank.
(1) The Secretary must, as soon as practicable after making a reviewable decision, cause a notice in writing to be given to the person whose interests are affected by the decision containing:
(a) the terms of the decision; and
(b) the reasons for the decision; and
(c) a statement setting out particulars of the person’s right to have the decision reviewed under this section.
(2) A person whose interests are affected by a reviewable decision may apply in writing to the Secretary for a review of the decision.
(3) An application for a review must be made within 30 days after the day on which the decision first came to the notice of the applicant, or within such further period (if any) as the Secretary, either before or after the end of that period, allows.
(4) Subject to subsection (5), the Secretary must, on receiving an application, review the decision, or cause it to be reviewed by a person to whom the Secretary’s power under this section is delegated, being a person other than the person who made, or was involved in the making of, the decision and occupying a position senior to that occupied by the last‑mentioned person.
(5) Where a reviewable decision is made by the Secretary personally, the Secretary must refer an application for review of the decision to the Minister and the Minister must review the decision.
(6) A person who reviews a reviewable decision may make a decision affirming, varying or revoking the reviewable decision and, where the person revokes the decision, may make such other decision as the person thinks appropriate.
(7) A reference in this section to a person whose interests are affected by a reviewable decision does not include the Bank.
(1) Where a person makes a decision under subsection 33(6) affirming or varying a reviewable decision, the person must cause a notice in writing to be given to the person whose interests are affected by the decision (other than the Bank) containing:
(a) the terms of the decision; and
(b) the reasons for the decision; and
(c) a statement to the effect that, subject to the
Administrative Review Tribunal Act 2024 , application may be made to the Administrative Review Tribunal for review of the decision to which the notice relates.(2) Failure to include in a notice under subsection (1) a statement of the kind mentioned in paragraph (1)(c) does not affect the validity of the decision to which the notice relates.
(3) Subject to the
Administrative Review Tribunal Act 2024 , application may be made to the Administrative Review Tribunal by a person other than the Bank for a review of a decision made under subsection 33(6) affirming or varying a reviewable decision.
(4) In this section:
decision has the same meaning as in theAdministrative Review Tribunal Act 2024 .
An agreement between the Commonwealth and the Bank that revokes, amends or otherwise affects the operation of subclause 8.4 of the agreement, as executed on 5 November 1990, has no effect.
(1) The Commonwealth must disclose or give to the Bank, in accordance with the agreement, any information in the Commonwealth's possession that is required to be disclosed or given to the Bank under the agreement.
(2) The Bank must disclose or give to the Commonwealth, in accordance with the agreement, any information in the Bank's possession that is required to be disclosed or given to the Commonwealth under the agreement.
(1) This section applies to personal information about any of the following people:
(a) an applicant for an entitlement certificate;
(b) a person who has been issued with an entitlement certificate (whether or not the certificate is in force);
(c) a person who is, or has been, a subsidised borrower;
(d) a surviving spouse or de facto partner, or a family member, of a person covered by paragraph (a), (b) or (c).
(2) A person covered by subsection (3) may, for a purpose prescribed by the regulations:
(a) use the personal information; or
(b) disclose the personal information to another person covered by that subsection.
(3) This subsection covers the following people:
(a) the Secretary;
(b) a delegate of the Secretary under section 37;
(c) a delegate of the Secretary under the
Defence Home Ownership Assistance Scheme Act 2008 (the2008 Act ) or theDefence Service Homes Act 1918 (the1918 Act );(d) the Bank, if the Bank has:
(i) received an application for a subsidised loan from the person mentioned in paragraph (1)(b) of this section; or
(ii) made a subsidised loan to the person mentioned in paragraph (1)(c) of this section;
(e) a loan provider as defined under section 3 of the 2008 Act, if the loan provider has:
(i) received an application for a subsidised loan (as defined under section 3 of the 2008 Act) from the person mentioned in paragraph (1)(b) of this section; or
(ii) made a subsidised loan (as defined under section 3 of the 2008 Act) to the person mentioned in paragraph (1)(c) of this section;
(f) a credit provider as defined under section 4 of the 1918 Act, if the credit provider has:
(i) received an application for a subsidised advance (as defined under section 4 of the 1918 Act) from the person mentioned in paragraph (1)(b) of this section; or
(ii) made a subsidised advance (as defined under section 4 of the 1918 Act) to the person mentioned in paragraph (1)(c) of this section.
(4) The use and disclosure of personal information under subsection (2) is taken to be authorised by this Act for the purposes of:
(a) the
Privacy Act 1988 ; and(b) any provision of a law of a State or Territory that provides that personal information may be used or disclosed if the use or disclosure is authorised by law.
Note: The authorisation under this subsection is only for the use and disclosure of personal information for a prescribed purpose mentioned in subsection (2).
(5) The regulations may prescribe circumstances in which a person may, or must not, use or disclose personal information for the purposes of this section.
(6) In this section:
personal information has the same meaning as in thePrivacy Act 1988 .
The Secretary may, by signed instrument, delegate all or any of the Secretary's powers and functions under this Act to a person who is:
(a) an officer of the Department; or
(b) a member (being an officer) of the Defence Force; or
(c) a member, or member of the staff, of the Defence Housing Australia; or
(d) a delegate of the Secretary under subsection 81(2) of the
Defence Home Ownership Assistance Scheme Act 2008 .
The following payments by the Commonwealth to the Bank are to be made out of the Consolidated Revenue Fund, which is appropriated accordingly:
(a) payments of subsidy;
(b) payments made under subclause 8.4 of the agreement.
(1) The Secretary must, as soon as practicable after each 30 June, prepare and give to the Minister a report on the administration and operation of this Act during the year that ended on that day.
(2) The Minister must cause a copy of each report to be laid before each House of the Parliament within 15 sitting days of that House after the day on which the Minister receives the report.
The Governor‑General may make regulations not inconsistent with this Act prescribing matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
Section 3
TABLE OF CONTENTS
Recital
Clause
1. DEFINITIONS AND INTERPRETATION
Definitions
Interpretation
2. AGREEMENT
Parties to be bound by this Agreement
Bank to act in accordance with Scheme
3. FRANCHISE
4. FRANCHISE PAYMENTS
Payments
Provision of invoices
Times for payment
Checking of invoices by the Bank
Manner of payment
Resolution of dispute as to sums payable under Sub‑clause 4.1(b)
4.7 Provision for possible refund of part or all of the $42 million referred to in Sub‑clause 4.1(a)
5. SUBSIDISED LOANS
Preliminary enquiries
Entitlement Certificates
Application for Subsidised Loan
Obligation of the Bank to make a Subsidised Loan
Increases in the amount of a Subsidised Loan
Application of Lending Criteria
Lending Criteria
Alteration of Lending Criteria
Factors to be excluded by the Bank
5.10 Provision of reasons for rejection
5.11 Non‑discrimination
5.12 Security
5.13 Loan agreement
5.14 Entitled Person to include “spouse” in certain cases
5.15 Calculation of Benchmark Rate
5.16 Changes to Title or Subsidised Loan Account during term of a Subsidised Loan
6. FEES
6.1 Definitions of “fees”
6.2 Fees to be same as for other Housing Loan Customers
7. SUBSIDY
7.1 Obligation of the Commonwealth to pay Subsidy
7.2 Obligation of Bank on receipt of Subsidy
7.3 Payment of Subsidy
8. OVER‑PAYMENT OF SUBSIDY
8.1 Where immediate repayment required
8.2 Where over‑payments are to be added to Subsidised Loan Account
8.3 Bank not required to add over‑payment where Subsidised Loan Account closed
8.4 Commonwealth to refund amounts to Bank in certain circumstances
8.5 Cases of fraud, mistake or concealment
8.6 Commonwealth to notify Bank of due amount from time to time
8.7 Meaning of “due amount
” 8.8 Meaning of “Subsidised Borrower”
9. FURTHER HOUSING LOANS
9.1 Ability to apply for Further Housing Loans
9.2 Bank not to discriminate
10. PROMOTION AND OPERATION OF THE SCHEME
10.1 Obligations of the Bank
10.2 Obligations of the Commonwealth
11. INFORMATION
11.1 Notices by the Bank
11.2 Notices by the Commonwealth
11.3 Provision of information generally
11.4 Assistance in preparing Annual Reports and evaluations
11.5 Disclosure
11.6 No Charge to the Commonwealth by the Bank
12. ACKNOWLEDGEMENT OF COMMONWEALTH ADMINISTRATIVE ARRANGEMENTS
12.1 Commonwealth to act through Departments and statutory authorities
12.2 Meaning of “Commonwealth
” in the Agreement
13. DEALINGS WITH SOUTH AFRICA
14. STAMP DUTY
15. LEGAL AND ACCOUNTING COSTS
16. APPLICABLE LAW
17. NOTICES
18. WAIVER
19. ENTIRE AGREEMENT
20. AMENDMENTS OR VARIATION
21. ASSIGNMENT
22. DISPOSAL BY BANK
23. FURTHER ASSURANCES
24. ARBITRATION
24.1 Notice of dispute, question or difference
24.2 Submitting a dispute to arbitration
24.3 Arbitration relating to franchise payments
24.4 Arbitration relating to Benchmark Rate
24.5 Provisions relating to all arbitrations
25. CONFIDENTIALITY
25.1 Acknowledgement by the Bank of confidential material
25.2 Duty not to disclose
26. WARRANTIES
26.1 Warranties by the Commonwealth
26.2 Warranties by the Bank
27. INDEMNITIES
27.1 Obligations of the Bank
27.2 Obligations of the Commonwealth
28. RELATIONSHIP OF THE PARTIES
29. DEFAULT PROVISIONS
29.1 Persistent failure by the Bank to provide Subsidised Loans
29.2 Persistent failure by the Bank to comply with any other term of the Agreement
29.3 Meaning of “rectify the failure”
29.4 Immediate termination
29.5 Effects of termination
29.6 Interest payable on moneys over‑due
30. AUDIT
30.1 Report by external auditors of the Bank
30.2 Qualified reports
30.3 Discussion of audit procedures with external auditors
30.4 No charge to the Commonwealth by the Bank
31. ENABLING LEGISLATION
31.1 Enabling legislation being passed by Parliament
31.2 Amendments to draft Bill
31.3 Effect of amendments
31.4 No notice by Bank
31.5 Draft Bill to be submitted to Parliament
31.6 Procedure where notice given by the Bank
31.7 Effect of termination
31.8 Agreement approved by enabling legislation
31.9 Commencement Date after 31 December 1991
31.10 Passage of enabling legislation after 31 December 1990
SCHEDULES
1. Schedule A Table of Franchise Payments
2. Schedule B Particulars to be included in certain forms used under
the Act
3. Schedule C Part D—certificate by Bank manager
4. Schedule D Loan agreement
AN AGREEMENT made the 5th day of November 1990 BETWEEN THE COMMONWEALTH OF AUSTRALIA (“the Commonwealth”) of the one part, and NATIONAL AUSTRALIA BANK LIMITED of 500 Bourke Street, Melbourne in the State of Victoria of the other part,
WHEREAS:
A. The Commonwealth wishes to introduce, with effect from 15 May 1991, a Scheme to assist certain Members and former Members of the Defence Force and their spouses to meet repayments on Housing Loans provided to them by the lender under the Scheme.
B. The Bank provides Housing Loans in its ordinary course of business and has offered to be the lender under the Scheme.
C. Assistance will be provided in the form of Subsidy payments by the Commonwealth paid to the Bank for the benefit of persons entitled to Subsidy and their spouses where appropriate.
D. Entitlement to Subsidy will be determined by the Commonwealth in accordance with the Act.
NOW THEREFORE IT IS AGREED AS FOLLOWS:
1. DEFINITIONS AND INTERPRETATIONS
In this Agreement except where the context otherwise requires:
1.1 Definitions
Act: | means the Defence Force (Home Loans Assistance) Act 1990 as amended from time to time. |
Agreement: | means this agreement between the Commonwealth and the Bank signed on the above date. |
Application for Payment of Subsidy: | means an application to the Commonwealth for payment of Subsidy by an Entitled Person or Subsidised Borrower. |
Bank: | means National Australia Bank Limited or any person or body to whom it assigns all or any of its rights or obligations under this Agreement. |
Benchmark Rate: | means the rate of interest calculated in accordance with Sub‑clause 5.15. |
Business Day: | means a day upon which banks are open for business in Canberra and in Melbourne. |
Calendar Year: | means a period of twelve (12) Months, beginning on 1 January. |
Commencement Date: | means the day on which the entire Act comes into effect or 15 May 1991 whichever is the later. |
Entitled Person: | means a person who has been issued with an Entitlement Certificate pursuant to the Act. |
Entitlement Certificate: | means an entitlement certificate issued pursuant to the Act by the Commonwealth. |
Financial Year: | means a period of twelve (12) Months commencing on 1 July. |
Franchise Term: | means the period from the Commencement Date to 31 December 2006. |
Further Housing Loan: | means a Housing Loan made by the Bank in respect of the Property and is a loan which is in addition to the Subsidised Loan. |
Grant of Approval: | means a grant of approval given by the Commonwealth pursuant to the Act. |
Housing Loan: | means a loan from a bank to a borrower for any of the purposes for which Subsidised Loans may be made or increased under the Act and is a loan in respect of a dwelling in which it is intended that the borrower shall reside or is residing. |
Joint Borrower: | means a person, not being a Subsidised Borrower, joined as a mortgagor on Title with a Subsidised Borrower. |
Lending Criteria | means the lending criteria set out in Sub‑clause 5.7. |
Member: | means a member of the Defence Force. |
Month: | means a calendar month. |
Mortgage: | shall mean the mortgage, including statutory mortgages under a Torrens system of registration, securing the Subsidised Loan. |
Property: | means the property over which the Subsidised Loan is, or is to be secured, and shall be either: (a) real property; or (b) a Crown lease of real property where the term of the lease is more than fifty (50) years. |
Rest Day: | means the last Business Day of each Month. |
Scheme: | means the scheme of Housing Loan assistance established by the Act and this Agreement. |
Subsidy: | means a payment of subsidy to the Bank by the Commonwealth pursuant to the Act. |
Subsidised Borrower: | has the same meaning as in the Act. |
Subsidised Loan: | means a Housing Loan made by the Bank under Clause 5 in respect of which: (a) Subsidy is being paid; (b) a right to be paid Subsidy has been established; or (c) Subsidy will be paid provided the requirements of the Act and of this Agreement are satisfied. |
Subsidised Loan Account: | means the loan account maintained by the Bank in the name of a Subsidised Borrower or, Subsidised Borrower and Joint Borrower where applicable, in connection with a Subsidised Loan. |
Subsidy Payment Commencement: | means in respect of a Subsidised Loan the making of the first payment of Subsidy by the Commonwealth to the Bank in respect of a Subsidised Loan which shall occur when the first payment is included in an amount deposited with the Bank pursuant to Sub‑clause 7.3.2. |
Title: | means the documents, deeds or instruments confirming or evidencing title to the Property. |
1.2 Interpretation
1.2.1 Words importing one gender shall include the other gender.
1.2.2 Words importing the singular shall include the plural and vice‑versa.
1.2.3 A reference to a Clause shall be a reference to all of its Sub‑clauses, and a reference to a Sub‑clause shall be a reference to all of its Sub‑Sub‑clauses.
1.2.4 The Clause headings in this Agreement are for reference only and have no effect on the construction, interpretation or meaning of the Clauses.
1.2.5 The Schedules referred to herein form part of and are subject to the terms of this Agreement.
1.2.6 Where in this Agreement any period of time dating from a given day, act or event is prescribed or allowed for any purpose, the time shall be reckoned inclusive of such day or of the day of such act or event.
1.2.7 Where the last day of any period prescribed or allowed by this Agreement for the doing of anything falls on a Saturday, on a Sunday or on a day which is a public holiday or a bank holiday in the place in which the thing is to be or may be done, the thing may be done on the first day following which is not a Saturday, a Sunday, a public holiday or a bank holiday in that place.
1.2.8 Where in this Agreement any reference to time occurs, such time shall, unless it is otherwise specifically stated, be deemed in each State or part of the Commonwealth to mean the time in that State or part of the Commonwealth.
1.2.9 A reference to a Clause shall be a reference to a Clause in this Agreement.
1.2.10 A reference to the parties shall be a reference to the parties to this Agreement or their permitted assigns.
1.2.11 All sums of money referred to in this Agreement and all payments made under this Agreement shall be in Australian dollars.
2. AGREEMENT
2.1 Parties to be bound by this Agreement.
The parties hereby agree to be bound by all terms and conditions set out in this Agreement.
2.2 Bank to act in accordance with Scheme
The Bank further agrees to be bound by and to act at all times in accordance with the Scheme.
3. FRANCHISE
The Commonwealth hereby grants to the Bank;
(a) during the Franchise Term the exclusive right to participate as the lender under the Scheme; and
(b) in respect of Subsidised Loans advanced during the Franchise Term the exclusive right to receive Subsidy for the benefit of Subsidised Borrowers, or Subsidised Borrowers and Joint Borrowers, as the case may be,
and the Bank accepts these grants.
4. FRANCHISE PAYMENTS
4.1 Payments
The Bank agrees to pay to the Commonwealth:
(a) forty‑two million dollars ($42 million); and
(b) for each of the periods set out in Column 1 of Schedule A a payment calculated in accordance with the following formula:
Where
P = the payment due to the Commonwealth;
a = the total number of Subsidy Payment Commencements made during the period set out in Column 1 of Schedule A, or 4,500 whichever is the lesser;
b = the number set out in Column 2 on the same line as the period in Column 1; and
c = the amount set out in column 3 on the same line as the period in Schedule A;
provided that where P is a figure less than one (1), no payment shall be due to the Commonwealth in respect of that period.
4.2. Provision of invoices
The Commonwealth agrees to provide the Bank with a written invoice detailing its claim for payments due under Sub‑clause 4.1 (b).
4.3 Times for payment
The payments referred to in Sub‑clause 4.1 shall be made as follows:
(a) the sum of forty‑two million dollars ($42 million) referred to in Sub‑clause 4.1 (a) on the Commencement Date by 11.00 A.M; and
(b) the payments referred to in Sub‑clause 4.1 (b) at the times set out in Column 4 of Schedule A or within seven (7) days after receipt by the Bank of an invoice under Sub‑clause 4.2, whichever is the later.
4.4 Checking of invoices by the Bank
4.4.1 The Bank agrees that, upon receipt of an invoice referred to in Sub‑clause 4.2, it shall conduct a reasonable examination of such of its records as the Bank considers relevant to determine the correctness or otherwise of the invoice. If, following the examination, the Bank is of the opinion that the Commonwealth has omitted to claim sums to which the Commonwealth is entitled it shall immediately advise the Commonwealth in writing of the omission.
4.4.2 Where an invoice omits to claim sums to which the Commonwealth is entitled and the Bank has advised the Commonwealth of the omission pursuant to Sub‑clause 4.4.1, the Commonwealth shall provide the Bank with a further written invoice in respect of the omitted sum, such invoice to be payable by the Bank within seven (7) days of receipt.
4.5 Manner of payment
The sums referred to in Sub‑clause 4.1 shall be paid by means of a Bank cheque made payable to the Receiver of Public Moneys, Department of Finance and shall be delivered by hand to the Receiver of Public Moneys, Department of Finance, 624 Bourke Street, Melbourne, or as may be otherwise decided by the Commonwealth and notified to the Bank.
4.6 Resolution of disputes as to payments under Sub‑clause 4.1 (b).
Where a dispute, question or difference has arisen between the Commonwealth and the Bank as to a sum payable under Sub‑clause 4.1 (b), the Bank shall pay to the Commonwealth the sum about which there is no dispute, question or difference and the matter that is in dispute may be referred to arbitration by one of the parties in accordance with Clause 24.
4.7 Provision for possible refund of part or all of $42 million referred to in Clause 4.1 (a)
4.7.1 The Commonwealth agrees that, pursuant to this Sub‑clause, the Bank may be entitled to a refund of part or all of the sum of $42 million referred to in Clause 4.1 (a) of this Agreement if, before 31 December 1995, the Commonwealth should:
(a) pass legislation to reduce the benefits available to Entitled Persons under the Scheme;
(b) pass legislation to change in a restrictive way the eligibility criteria for participation in the Scheme; or
(c) introduce another scheme of Housing Loan assistance for members of the Defence Force who are eligible under this Scheme,
and this causes:
(d) the number of persons to whom Subsidised Loans are provided by the Bank under the Scheme to fall below:
(i) 2,000 in the period from the Commencement Date to 31 December 1992; or
(ii) 2,000 in the 1993 Calendar Year, the 1994 Calendar Year or the 1995 Calendar Year.
4.7.2 Where the Bank is of the opinion that any of the above facts have occurred or will occur, it may give notice of that situation to the Commonwealth in writing. On receipt of such notice the Commonwealth and the Bank shall meet with a view to verifying the facts and then determining the extent to which part or all of the sum of $42 million referred to in Clause 4.1(a) shall be refunded to the Bank by the Commonwealth to take account of the effects of such action by the Commonwealth, such refund not to exceed the following sums:
(ii) If no reference rate is set out in Item 3 of the Schedule, and the Bank is not in receipt of subsidy, then the following provision applies:—
Upon the fixing of a new current interest rate by the Bank, or debiting an annual insurance premium as set out in Item 7 of the Schedule, the amount of each instalment payable thereafter may be varied by the Bank notwithstanding that such variation may increase or decrease the term of the loan set out in Item 2 of the Schedule. In the event that the Bank should so vary the amount of instalments, the Bank shall give one months notice to the Applicant of such variation.
(iii) If a reference rate is set out in Item 3 of the Schedule, and the Bank is not in receipt of subsidy, then the following provision applies:—
Once during each year until the loan is repaid in full, the Bank will review the instalments payable pursuant to Clause 4 hereof. If the current interest rate at the date of the review exceeds the reference rate then fixed by the Bank such instalment will be increased by a rate equal to the difference between the current interest rate and such reference rate. The instalments may also be increased to provide for the debiting to the loan account of annual premium/s for insurance/s set out in Item 7 of the Schedule. The Bank shall give the Applicant one months notice of any variation to the instalment.
7. The Applicant shall have the right, at any time, to repay the whole or any part of the balance of the loan, provided however, that any such repayment shall not reduce the amount of each instalment payable thereafter except by prior agreement with the Bank.
8. (i) The Applicant shall pay to the Bank on demand an application fee as set out in Item 5 of the Schedule.
(ii) The Applicant shall pay a service fee calculated in accordance with the Bank’s scale current from time to time. Such service fee shall be debited to the loan account on the days adopted for this purpose from time to time by the Bank. The initial service fee is set out in Item 5 of the Schedule provided that the service fee may be varied by the Bank without notice to the Applicant.
(iii) If the loan is not drawn before the expiration of three months from the date of approval of the application by the Bank, the Applicant shall pay a commitment fee as set out in Item 5 of the Schedule, being a percentage per annum of the amount of the loan undrawn, calculated on a daily basis from the date of approval until the loan is drawn, or in the case of a progressive loan, the first drawdown of the loan, provided that the Bank at its discretion may require the Applicant to pay the commitment fee on the undrawn instalments of such progressive loan until the loan is fully drawn. The commitment fee shall be paid upon drawdown of the loan or upon the final drawdown of the loan in case of a progressive loan.
9. Notwithstanding Clause 8 (iii) hereof or the fact that a commitment fee may have been charged by the Bank if the Applicant does not avail of the loan or any part thereof within twelve months of the date of issue of the entitlement certificate (or, if no Entitlement Certificate is issued, within twelve (12) months of the date of approval of the loan) the Bank may thereafter at any time elect that it shall no longer be under any obligation to make the loan hereby applied for provided that the Bank shall give to the Applicant not less than one months notice of its intention to exercise such election and the Applicant shall have the right to draw the loan (subject to the terms and conditions) prior to the expiration of the period mentioned in such notice; provided always that if the Bank does elect not to make the loan it shall not affect the Applicant's right to apply for further loans under the Scheme or otherwise.
10. The Applicant shall pay, or reimburse the Bank on demand, or at its discretion the Bank may debit the Applicant's account, for all costs, charges and expenses of every description which the Bank may according to its usual practice incur in connection with:—
(a) this application, the loan, any instrument executed by the Applicant pursuant to these terms and conditions or any of the securities or any other document given or which may be given in relation to the loan, and
(b) the exercise or attempted exercise of any power or remedy pursuant to these terms and conditions, any of the securities or any other document or otherwise in respect of the loan,
including, but not limited to, all charges for legal advice or assistance as between solicitor and client, stamp duty and search and registration fees. The Bank may debit all such costs, charges and expenses to the loan account so that the amounts thereof shall be included in the balance of the loan from time to time or may debit the same to the account nominated on the Home‑Loan Application for debiting of instalments.
11. Sub‑clause 6.1 and sub‑clause 6.2 of the agreement made between the Bank and the Commonwealth on 5th November 1990, a copy of which is set out in Schedule 1 of the
Defence Force (Home Loans Assistance) Act 1990 , are incorporated by reference herein for the purposes of Clause 8 and Clause 10 hereof.12. The balance of the loan together with interest and all fees and other moneys owing by the Applicant to the Bank shall be secured by the securities. The Applicant shall not be entitled to drawdown the loan or any part thereof until the Bank is satisfied that each security is properly executed and, where appropriate, is capable of registration.
13. The Applicant shall set forth such information in a Home‑Loan Application as the Bank may require.
14. Notwithstanding anything to the contrary expressed or implied herein or in any other document whatsoever whether connected with the loan or with any other transaction and whether executed heretofore or hereafter the Applicant agrees with the Bank to pay the balance of the loan together with interest and all fees and other moneys owing by the Applicant to the Bank on the date upon which demand therefor in writing is made on the Applicant by the Bank after the occurrence of any one or more of the following events:—
(a) default is made in the payment of any moneys on the day upon which they become due and payable pursuant to the provisions hereof,
(b) default (other than the default mentioned in the preceding sub‑ paragraph (a)) is made in the performance or observance of any of the provisions hereof,
(c) the Applicant commits a breach of any covenant or agreement contained in the said securities,
(d) the Applicant commits a breach of or defaults under the terms of any other agreement or arrangement between the Applicant and the Bank,
(e) any mortgagee or encumbrancer of the land comprised in the security exercises or attempts to exercise any power by virtue of any default under the mortgage or encumbrance,
(f) the Applicant without the written consent of the Bank (which may attach such terms or conditions to the giving of consent as it thinks fit) further mortgages, charges or otherwise further encumbers the land subject to the securities, or does or suffers to be done anything whereby any charge or liability becomes or might become imposed upon the land subject to the securities of any part or parts thereof, whether in priority to the securities or not or attempts so to do,
(g) the Applicant without the written consent of the Bank (which may attach such terms or conditions to the giving of consent as it thinks fit) transfers, sells or leases or attempts to transfer, sell, lease or in any way parts with possession of the land subject to the securities or any part or parts thereof or attempts so to do, or alters, demolishes or removes any building thereon,
(h) the Applicant without the written consent of the Bank (which may attach such terms or conditions to the giving of consent as it thinks fit) subdivides the land subject to the securities or any part or parts thereof or attempts so to do, or calls for an apportionment of the loan pursuant to the provisions of any statute, rule of law or equity,
(i) any guarantor of the loan becomes bankrupt or assigns his estate for the benefit of his creditors or enters into a composition or arrangement with his creditors or in the case of a company goes into liquidation either voluntarily or compulsorily,
(j) the Applicant becomes bankrupt or assigns his estate for the benefit of his creditors or enters into a composition or arrangement with his creditors or in the case of a company goes into liquidation either voluntarily or compulsorily,
(k) any of the information supplied by the Applicant appearing in the Home‑Loan Application is found to be false or, in the opinion of the Bank, is misleading, or
(l) any of the information supplied by the Applicant in support of any application to the Commonwealth under the Scheme (including, but not limited to, information supplied in an application for an entitlement certificate or application for payment of subsidy) is found to be false.
15. The Applicant agrees and acknowledges that during such period as the Bank is in receipt of subsidy in respect of the loan the Bank shall be bound to act in accordance with the Scheme and in particular the Applicant acknowledges and agrees that:
(a) (i) where an amount is incorrectly paid to the Bank by the Commonwealth by way of subsidy, the Bank will, in accordance with the Scheme, pay to the Commonwealth an amount equal to the amount incorrectly paid (together with any interest thereon due under the Scheme) and any such payment will be debited to the loan account so that the amount thereof shall be included in the balance of the loan from time to time and shall be secured by the securities;
(ii) where the Bank pays an amount to the Commonwealth under sub‑paragraph (i) hereof and such amount (or any part thereof) is reimbursed or refunded to the Bank by the Commonwealth pursuant to the Scheme, the Applicant will be indebted to the Commonwealth for such amount; and
(iii) if the Applicant is indebted to the Commonwealth under the Scheme for any amount incorrectly paid to the Bank by the Commonwealth by way of subsidy and the Bank realises any securities over the property specified in Item 6 of the Schedule, then the Bank will from the proceeds of such realisation pay to the Commonwealth such amount as the Bank is required to pay under the Scheme in respect of the Applicant's indebtedness;
(b) the Bank will provide the Commonwealth with copies of any documents or any other information in the possession or under the control of the Bank relating to the loan or application for loan or to the Scheme as may from time to time be requested by the Commonwealth pursuant to the Scheme or which the Bank is otherwise required to provide to the Commonwealth pursuant to the Scheme;
(c) the Bank shall not be liable or responsible to the Applicant for any loss, damage or cost suffered or incurred by the Applicant (whether directly or indirectly) as a result of, or arising from, the operation of the Scheme except where such loss, damage or cost is attributable to failure by the Bank to act in accordance with the Scheme;
(d) the Bank will not allow:
(i) the name of the Applicant appearing on the loan account or on the securities to be changed from that appearing in the entitlement certificate; or
(ii) a person to be joined to or separated from the loan account or securities,
unless the Bank agrees to such change and the Applicant obtains approval from the Commonwealth for such change;
(e) the Bank will not allow a property specified in Item 6 of the Schedule to be held on, or converted to, a tenancy in common.
16. The Applicant acknowledges that the Commonwealth has sole responsibility for considering and approving any applications which the Applicant is required to make to the Commonwealth pursuant to the Scheme (including, but not limited to, applications for entitlement certificate and payment of subsidy) and for determining whether subsidy is payable or whether subsidy shall be cancelled or suspended.
17. The Bank agrees to be bound by and act in accordance with the Scheme. The generality of this clause shall not be affected by any other provisions herein.
18. When two or more Applicants are parties hereto the agreements on their part herein contained or implied shall bind them and any two or more of them jointly and each of them severally.
Item:
1. Applicant:
2. Loan: $
Term: years
3. Instalments
Initial Instalment: $
Due: Monthly/Fortnightly*—commencing that period from final drawdown or such other date as advised by the Bank.
Reference Rate: % per annum
4. Loan Interest Day
Last business day of each—Month** (* *Delete and specify relevant period if other than Month)
5. Fees
Application Fee: $
Initial Service Fee: $ per half year
Commitment fee: % per annum
6. Securities
(To be) registered First/Second* Mortgage over property situated at—
7. Insurances
Please effect a:
* Home Safe Policy with National and General Insurance Co. Ltd.
* Mortgage Safe Policy with National and General Insurance Co. Ltd.
* Mortgage Safe Policy with National Australia Life Ltd.
and debit to the loan account the annual premium/s as advised by the Insurer/s.
*Delete whichever is inapplicable.
8. Current Interest Rate
% per annum
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
The abbreviation key sets out abbreviations that may be used in the endnotes.
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
The
If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.
A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the
If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.
ad = added or inserted | o = order(s) |
am = amended | Ord = Ordinance |
amdt = amendment | orig = original |
c = clause(s) | par = paragraph(s)/subparagraph(s) |
C[x] = Compilation No. x | /sub‑subparagraph(s) |
Ch = Chapter(s) | pres = present |
def = definition(s) | prev = previous |
Dict = Dictionary | (prev…) = previously |
disallowed = disallowed by Parliament | Pt = Part(s) |
Div = Division(s) | r = regulation(s)/rule(s) |
ed = editorial change | reloc = relocated |
exp = expires/expired or ceases/ceased to have | renum = renumbered |
effect | rep = repealed |
F = Federal Register of Legislation | rs = repealed and substituted |
gaz = gazette | s = section(s)/subsection(s) |
LA = | Sch = Schedule(s) |
LIA = | Sdiv = Subdivision(s) |
(md) = misdescribed amendment can be given | SLI = Select Legislative Instrument |
effect | SR = Statutory Rules |
(md not incorp) = misdescribed amendment | Sub‑Ch = Sub‑Chapter(s) |
cannot be given effect | SubPt = Subpart(s) |
mod = modified/modification | |
No. = Number(s) | commenced or to be commenced |
Defence Force (Home Loans Assistance) Act 1990 | 14, 1991 | 21 Jan 1991 | s 1–9 and Sch 1: 21 Jan 1991(s 2(1)) Sch 2: 1 Mar 1991 (s 2(2) and gaz 1991, No. S24) Remainder: 15 May 1991 (s 2(3)) | |
Defence Force (Home Loans Assistance) Amendment Act 1991 | 152, 1991 | 21 Oct 1991 | s 4(a): 21 Jan 1991 (s 2(2)) Remainder: 21 Oct 1991 (s 2(1)) | — |
Veterans’ Affairs Legislation Amendment Act 1992 | 70, 1992 | 26 June 1992 | Sch: 26 June 1992 (s 2(1)(f)) | — |
Defence Legislation Amendment Act 1992 | 91, 1992 | 30 June 1992 | s 12 and 15: 30 June 1992 (s 2(1)) s 13 and 14: 1 Sept 1992 (s 2(2) and gaz 1992, No. S211) | — |
Defence Legislation Amendment Act 1993 | 95, 1993 | 22 Dec 1993 | s 10–15: 22 Dec 1993 (s 2) | — |
Defence Force (Home Loans Assistance) Amendment Act 1994 | 61, 1994 | 19 May 1994 | 19 May 1994 (s 2) | — |
Defence Legislation Amendment Act 1995 | 43, 1995 | 15 June 1995 | Sch 3: 1 Sept 1994 (s 2(4)) | — |
Defence Legislation Amendment Act (No. 1) 1996 | 56, 1996 | 8 Nov 1996 | Sch 1 (items 5–44): 8 Nov 1996 (s 2(1)) | Sch 1 (item 44) |
Defence Legislation Amendment Act (No. 1) 1999 | 116, 1999 | 22 Sept 1999 | Sch 6 (item 1): 22 Sept 1999 (s 2(1)) | — |
Defence Legislation Amendment (Enhancement of the Reserves and Modernisation) Act 2001 | 10, 2001 | 22 Mar 2001 | Sch 2 (items 40–43, 94, 95): 19 Apr 2001 (s 2(1)) | Sch 2 (items 94, 95) |
Defence Legislation Amendment Act 2003 | 135, 2003 | 17 Dec 2003 | Sch 2 (items 26, 27): 17 Dec 2003 (s 2(1) item 8) | — |
Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004 | 52, 2004 | 27 Apr 2004 | Sch 3 (items 15–18): 1 July 2004 (s 2(1) item 6) | — |
Defence Legislation Amendment Act (No. 1) 2005 | 121, 2005 | 6 Oct 2005 | Sch 5 (items 16–18): 1 Jan 2005 (s 2(1) item 3) | — |
Defence Housing Authority Amendment Act 2006 | 45, 2006 | 22 May 2006 | Sch 2 (item 1): 22 Nov 2006 (s 2(1) item 3) | — |
Defence Force (Home Loans Assistance) Amendment Act 2006 | 137, 2006 | 30 Nov 2006 | 30 Nov 2006 (s 2) | — |
Defence Force (Home Loans Assistance) Amendment Act 2007 | 81, 2007 | 21 June 2007 | 21 June 2007 (s 2) | — |
Defence Home Ownership Assistance Scheme (Consequential Amendments) Act 2008 | 28, 2008 | 23 June 2008 | Sch 1 (items 1–5): 1 July 2008 (s 2(1)) | — |
Same‑Sex Relationships (Equal Treatment in Commonwealth Laws—General Law Reform) Act 2008 | 144, 2008 | 9 Dec 2008 | Sch 4 (items 2–46): 10 Dec 2008 | Sch 4 (items 16, 22, 24, 35) |
Statute Law Revision Act 2011 | 5, 2011 | 22 Mar 2011 | Sch 7 (item 48): 19 Apr 2011 (s 2(1) item 19) | — |
Privacy Amendment (Enhancing Privacy Protection) Act 2012 | 197, 2012 | 12 Dec 2012 | Sch 5 (item 30) and Sch 6 (items 15–19): 12 Mar 2014 (s 2(1) items 3, 19) Sch 6 (item 1): 12 Dec 2012 (s 2(1) item 16) | Sch 6 (items 1, 15–19) |
Statute Law Revision Act 2013 | 103, 2013 | 29 June 2013 | Sch 4 (item 4): 29 June 2013 (s 2(1) item 16) | — |
Safety, Rehabilitation and Compensation Legislation Amendment (Defence Force) Act 2017 | 108, 2017 | 14 Sept 2017 | Sch 3 (items 8, 9): 12 Oct 2017 (s 2(1) item 5) | — |
Federal Circuit and Family Court of Australia (Consequential Amendments and Transitional Provisions) Act 2021 | 13, 2021 | 1 Mar 2021 | Sch 2 (items 297, 298): 1 Sept 2021 (s 2(1) item 5) | — |
Administrative Review Tribunal (Consequential and Transitional Provisions No. 1) Act 2024 | 38, 2024 | 31 May 2024 | Sch 8 (item 1): 14 Oct 2024 (s 2(1) item 2) | — |
s 3............................................. | am No 152, 1991; No 70, 1992; No 91, 1992; No 95, 1993; No 56, 1996; No 116, 1999; No 10, 2001; No 135, 2003; No 52, 2004; No 137, 2006; No 81, 2007; No 28, 2008; No 144, 2008; No 5, 2011; No 108, 2017; No 13, 2021 | |
s. 3A.......................................... | ad. No. 152, 1991 | |
s. 3B.......................................... | ||
ad. No. 95, 1993 | |
s. 3C.......................................... | ad. No. 95, 1993 |
am. No. 121, 2005 | |
s. 4............................................ | am. No. 152, 1991; No. 91, 1992; No. 43, 1995; No. 135, 2003 |
ss. 5, 6....................................... | am. No. 144, 2008 |
s. 8............................................ | rs. No. 144, 2008 |
s. 10........................................... | am. No. 152, 1991; No. 144, 2008 |
s. 12........................................... | am. No. 152, 1991; No. 95, 1993; No. 56, 1996; Nos. 28 and 144, 2008 |
s. 13........................................... | am. No. 91, 1992 |
s. 14........................................... | am. No. 152, 1991; No. 56, 1996; No. 144, 2008 |
s. 15........................................... | am. No. 144, 2008 |
s 17............................................ | am No 144, 2008 |
s 18............................................ | am No 144, 2008; No 13, 2021 |
s. 20........................................... | am. No. 144, 2008 |
s. 20A........................................ | ad. No. 28, 2008 |
ss. 21, 22.................................... | am. No. 56, 1996 |
s. 23........................................... | am. No. 152, 1991; No. 95, 1993; No. 56, 1996 |
s 24 ........................................... | am No 152, 1991; No 95, 1993; No 56, 1996; No 52, 2004; No 144, 2008; No 108, 2017 |
s 26............................................ | am No 56, 1996; No 144, 2008 |
s 29............................................ | am No 144, 2008; No 13, 2021 |
s 30............................................ | am No 144, 2008 |
s 34............................................ | am No 38, 2024 |
s 35............................................ | am No 61, 1994 |
s 36A......................................... | ad No 28, 2008 |
am No 144, 2008; No 197, 2012 | |
s 37............................................ | am No 45, 2006; No 28, 2008 |
Schedule 2.................................. | rep No 103, 2013 |
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