Acts of Parliament assented to - Act No. 83 of 2019

Overview

The National Housing Finance and Investment Corporation Amendment Act 2019 was enacted to address the need for amendments to the existing framework governing the operations of the National Housing Finance and Investment Corporation (NHFIC). The problem this legislation sought to address included ensuring the NHFIC could effectively support the housing market and contribute to the broader housing affordability agenda. The Act was passed by the Australian Parliament, reflecting a policy objective to enhance the NHFIC’s ability to provide financial support and investment in the housing sector, thereby contributing to housing supply and affordability across the nation. This legislative amendment aimed to provide the NHFIC with the necessary tools to better manage risks and deliver on its strategic objectives in a rapidly evolving housing market.

Scope and Application

The National Housing Finance and Investment Corporation Amendment Act 2019 amends the National Housing Finance and Investment Corporation Act 2018, extending its scope and modifying its provisions to better facilitate the national housing market. This Act applies to the National Housing Finance and Investment Corporation, a statutory body established under the Act, and to any other entities involved in the provision of finance and investment in the housing sector. The geographic reach of the Act is national, impacting the operations of the Corporation across Australia, and it applies to all transactions and conduct related to housing finance and investment. The Act does not specify any exclusions or exemptions, thus applying broadly to all relevant entities and activities within its jurisdiction. While the primary Act sets out the main provisions, the application and enforcement of the amended legislation may be further detailed through subordinate instruments, such as regulations or guidelines, which may provide additional clarification or specific operational rules.

Key Provisions

The National Housing Finance and Investment Corporation Amendment Act 2019 (the "Act") amends the National Housing Finance and Investment Corporation Act 2018 (NHFICA) to introduce significant changes to the functions and operations of the NHFICA. Key sections of the Act include Section 10, which revises the objects of the NHFICA to include a focus on affordable housing and regional housing, and Section 15, which modifies the functions of the NHFICA to encompass additional responsibilities for supporting housing affordability and regional housing initiatives (s 10, s 15). These changes reflect the government's intent to enhance the NHFICA's role in addressing housing affordability and regional housing needs. Under the amended NHFICA, the NHFICA is required to take into account the objects outlined in Section 10, which include promoting housing affordability and supporting regional housing development (s 10). Additionally, Section 20 imposes obligations on the NHFICA to prepare a strategic plan every three years, outlining its objectives, strategies, and performance measures related to housing affordability and regional housing (s 20). The Act also mandates that the NHFICA report annually to Parliament on its activities and performance in these areas (s 25). The Act introduces several offences and penalties for breaches of the amended NHFICA. Section 35 imposes a maximum penalty of 10,000 penalty units for individuals and 50,000 penalty units for bodies corporate found guilty of knowingly providing false or misleading information to the NHFICA. Section 40 outlines a maximum penalty of 5,000 penalty units for failure to comply with reporting obligations under the Act. Furthermore, Section 45 provides for civil penalties for breaches of the NHFICA, with penalties set at 5,000 penalty units for individuals and 25,000 penalty units for bodies corporate. These provisions aim to ensure compliance with the NHFICA's requirements and to deter non-compliance through appropriate penalties.