Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1)

Administered by Department of Veterans' Affairs

Legislation au F2005B00019 Regulations Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Statutory Rules 2004 No. 376

 

Defence Force (Home Loans Assistance) Act 1990

 

Issued by the authority of the Minister for Veterans' Affairs

 

Defence Force (Home Loans Assistance) Amendment

Regulations 2004 (No. 1)

 

 

Section 40 of the Defence Force (Home Loans Assistance) Act 1990 (the Act) provides that the Governor-General may make regulations not inconsistent with the Act prescribing matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

 

It is a requirement under the Act that a member of the Australian Defence Force must have served a certain period of continuous full time service in order to obtain financial assistance. Section 7 of the Act provides that a member's full time service is not broken where prescribed leave is taken. Regulation 4 of the Defence Force (Home Loans Assistance) Regulations (the Principal Regulations) provides that prescribed leave is :

  • compensation leave within the meaning of the Commonwealth Employees' Rehabilitation and Compensation Act 1988 ; and
  • leave without pay and maternity leave granted pursuant to Ministerial Determinations under section 58B of the Defence Act 1903.

 

The purpose of the Regulations is to update the list of prescribed leave types that do not interrupt continuous full time service for the purpose of determining eligibility for financial assistance under the Act.  The Regulations would also update the title of the Principal Regulations in line with current drafting practice.

 

The Military Rehabilitation and Compensation Act 2004 (the MRC Act) commenced on 1 July 2004.  The MRC Act provides for a rehabilitation and compensation scheme for current and former members of the Australian Defence Force, who until 30 June 2004 were covered by the Safety, Rehabilitation and Compensation Act 1988.

 

As a result of the enactment of the MRC Act, consequential amendments to the Principal Regulations have been identified to ensure that prescribed leave includes instances where members are incapacitated as a result of injury or disease and are entitled to compensation under the MRC Act. A further amendment, while not consequential on the enactment of the MRC Act, is necessary as a result of the change in name of the Commonwealth Employees' Rehabilitation and Compensation Act 1988 to the Safety, Rehabilitation and Compensation Act 1988 in 1992. Furthermore, an amendment to the definitions in regulation 3 is also required to reflect the replacement of the "Leave Without Pay Determination 2608" and the "Maternity Leave Determination 2604" with the "Defence Determination 2003/21".

 

Details of the Regulations are outlined in the Attachment.

 

The Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.

 

The Regulations are taken to have commenced on 1 July 2004, the same date as the commencement of the MRC Act. Subsection 48(2) of the Acts Interpretation Act 1901 (AIA) prohibits the making of a regulation retrospectively if such an amendment has the effect of adversely affecting the rights of a person or imposing a liability on such a person (other than the Commonwealth), for acts done before the date of the notification of the regulation in the Gazette. The Australian Government Solicitor has advised that, as the Regulations do not operate in such a manner, the retrospective commencement of the Regulations is not prohibited by subsection 48(2) of the AIA. On the contrary, they have a beneficial operation for eligible Australian Defence Force members.

 

 

 

 

 

 

 

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ATTACHMENT

 

 

 Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1)

 

 

Regulation 1 identifies these Regulations as the Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1).

 

Regulation 2 provides that the Regulations are taken to have commenced on 1 July 2004, the same date as the commencement of the Military Rehabilitation and Compensation Act 2004 (the MRC Act).

 

Regulation 3 identifies the regulations amended by Schedule 1 as the Defence Force (Home Loans Assistance) Regulations (the Principal Regulations).

 

Schedule 1 makes three substantive amendments to the Principal Regulations.

 

Item 1 substitutes the citation of the Principal Regulations in regulation 1 with the "Defence Force (Home Loans Assistance) Regulations 1991."

 

Item 2 replaces the obsolete references to Determination 2604 (Maternity Leave) and Determination 2608 (Leave Without Pay) with a reference to Defence Determination 2003/21, which has consolidated these and other former Determinations.

 

Item 3 substitutes existing regulation 4 to specify types of leave that would be prescribed leave for the purposes of the Defence Force (Home Loans Assistance) Act 1990, as a consequence of the enactment of the MRC Act and the consolidated Defence Determination 2003/21 namely-

 

  • leave granted to a member who is:

(a)   incapacitated for service or work; and

(b)   entitled to compensation under Part 3 of Chapter 4 of the MRC Act;

  • maternity leave without pay under Part 3 of Chapter 8 of the Defence  Determination;
  • parental leave without pay granted under Part 4 of Chapter 8 of the Defence Determination;
  • leave without pay granted under Part 7 of Chapter 8 of the Defence Determination of the kind mentioned in clause 8.7.3 of that Determination; and
  • part-time leave without pay granted under clause 8.7.4 of the Defence Determination.

 

 Item 3 also replaces the reference to Commonwealth Employees' Rehabilitation and Compensation Act 1988 with the Safety, Rehabilitation and Compensation Act 1988. This is a housekeeping measure necessary as a result of the change in name of the former Act to the latter Act in 1992.

Overview

The Defence Force (Home Loans Assistance) Act 1990 was enacted by the Commonwealth Parliament to address the financial hardship faced by members of the Australian Defence Force when they were unable to maintain home loans due to service-related disabilities or other circumstances. This Act aims to provide financial assistance to eligible members, ensuring they are not left in financial distress as a result of their service. The Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1) were subsequently introduced to update the list of prescribed leave types that do not interrupt continuous full-time service for the purposes of determining eligibility for financial assistance. These amendments were necessitated by the enactment of the Military Rehabilitation and Compensation Act 2004 and changes in the naming and consolidation of related Defence Determinations. The policy objective of these regulations is to ensure that the list of prescribed leaves remains current and reflective of the legal framework governing military rehabilitation and compensation.

Scope and Application

The Defence Force (Home Loans Assistance) Act 1990 applies to members of the Australian Defence Force who seek financial assistance for home loans. Eligibility for this assistance hinges on the member having served a specific period of continuous full-time service, which is not interrupted by certain types of leave as defined in the Act and its regulations. The Act operates nationally, covering all members of the Australian Defence Force regardless of where they are stationed. It also allows for the creation of regulations to further define the scope of the Act, as seen in the Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1), which updated the types of prescribed leave that do not break the continuity of service. These regulations, which came into effect on 1 July 2004, amended the Defence Force (Home Loans Assistance) Regulations to reflect changes in related legislation such as the Military Rehabilitation and Compensation Act 2004 and updates to Defence Determinations, ensuring that the leave types recognised under the Act remain current and comprehensive.

Key Provisions

The Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1) amend the Defence Force (Home Loans Assistance) Regulations 1991 (Principal Regulations) to update the types of leave that do not interrupt continuous full time service for the purpose of determining eligibility for financial assistance under the Defence Force (Home Loans Assistance) Act 1990 (the Act). Regulation 2 of the Amendment Regulations specifies that these Regulations commence on 1 July 2004, the same date as the commencement of the Military Rehabilitation and Compensation Act 2004. Regulation 3 identifies the Principal Regulations as those amended by Schedule 1. Schedule 1 makes several key amendments to the Principal Regulations, the most significant of which is found in Item 3, which updates the types of prescribed leave. The Defence Force (Home Loans Assistance) Act 1990 requires that a member of the Australian Defence Force must have served a certain period of continuous full time service to obtain financial assistance. Regulation 4 of the Principal Regulations, as amended by Item 3 of Schedule 1, provides that prescribed leave includes compensation leave under the Safety, Rehabilitation and Compensation Act 1988, and specific types of leave granted under the Defence Determination 2003/21. This amendment ensures that leave taken for reasons such as incapacity due to injury or disease and leave related to maternity, parental care, and other specified circumstances, does not break the continuity of full-time service. This means that members who take such leave are still eligible to receive financial assistance under the Act. The Defence Force (Home Loans Assistance) Amendment Regulations 2004 (No. 1) impose several obligations on the parties involved. Firstly, they require the updating of the types of leave that do not interrupt continuous full-time service, ensuring that members who take leave for specific reasons, such as incapacity or maternity, are still eligible for financial assistance. Secondly, the Regulations mandate that the Principal Regulations be updated to reflect changes in legislation, such as the Military Rehabilitation and Compensation Act 2004 and the change in name of the Safety, Rehabilitation and Compensation Act 1988. These obligations are aimed at ensuring that the Regulations remain current and relevant to the changing legal environment. Under the Defence Force (Home Loans Assistance) Act 1990, there are no explicit offences or penalties for breach of the Act or Regulations. However, failure to comply with the requirements set out in the Regulations could potentially lead to disputes regarding eligibility for financial assistance. In such cases, the matter would likely be resolved through administrative review or judicial interpretation. The Regulations themselves do not impose criminal or civil penalties for breach, but rather provide a framework for determining eligibility for financial assistance based on the types of leave that do not interrupt continuous full-time service. The Regulations ensure that members who take leave for specified reasons are not disadvantaged in their pursuit of financial assistance.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.