Overview

The Defence Home Ownership Assistance Scheme Act 2008 was introduced to assist eligible members of the Australian Defence Force (ADF) in achieving home ownership. This Act provides a scheme designed to offer financial support to ADF members, enabling them to purchase or maintain a home. To ensure the scheme remains effective and relevant, the Act includes provisions for the Minister for Defence to periodically update key figures such as the average house price. The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2010 (No.1) was enacted to address the need for an updated average house price for the 2010-2011 financial year, reflecting changes in the housing market. This Determination was made under the authority of the Defence Home Ownership Assistance Scheme Act 2008 and was prepared by the Office of Legislative Drafting and Publishing in the Attorney-General’s Department. The policy objective is to maintain the integrity and efficacy of the home ownership assistance scheme by ensuring it accurately reflects current market conditions.

Scope and Application

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2010 (No.1) pertains to the Defence Home Ownership Assistance Scheme Act 2008, which provides a home ownership assistance scheme for eligible members of the Australian Defence Force (ADF). The Determination specifically addresses the calculation of the monthly subsidy amount by setting the average house price for the Scheme, applying to the 2010-2011 financial year. The Determination was made by the Minister for Defence under the authority conferred by section 52 of the Act, and it amends the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2008. The average house price for the 2010-2011 financial year was set at $494,432, reflecting an increase of $65,359 from the previous year's figure, based on data from the Australian Bureau of Statistics. The Act mandates that the Minister must consider the national average house price and regional weighting data when making such determinations. This Determination applies nationally across Australia and is effective from 1 July 2010.

Key Provisions

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2010 (No.1) sets forth the average house price for the 2010-2011 financial year under the Defence Home Ownership Assistance Scheme (the Scheme) as specified in section 4(3) of the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2008 (the Principal Determination). The average house price for the specified financial year is set at $494,432, which reflects the changes in the housing market over the preceding period. This determination is crucial as it directly impacts the calculation of the monthly subsidy amount provided to eligible members of the Australian Defence Force (ADF) under the Scheme. Under the Defence Home Ownership Assistance Scheme Act 2008, the Minister for Defence is empowered to set the average house price by determination from time to time, in accordance with section 52(1) of the Act. The Minister has delegated this power to the Director General Personnel Policy and Employment Conditions. Section 52(2) of the Act mandates that the Minister consider the national average house price and regional weighting data when determining the average house price for the Scheme. The national average house price is derived from statistical data published by the Australian Bureau of Statistics, which includes unstratified median house prices for the eight capital cities, adjusted by the house price index weighting for each city. This ensures that the average house price reflects the current state of the housing market across Australia, taking into account regional variations. The Determination imposes specific obligations on the parties involved. The Minister for Defence, through the Director General Personnel Policy and Employment Conditions, is responsible for setting the average house price annually, based on the data and considerations outlined in the Act. The average house price determined is then applied to the calculations of the monthly subsidy amounts for eligible ADF members. This process ensures that the Scheme remains responsive to changes in the housing market and provides fair and timely support to ADF members. Additionally, consultation with relevant entities such as the Treasury, the Department of Finance and Deregulation, and the Australian Bureau of Statistics was conducted to ensure the accuracy and appropriateness of the methodology used in determining the average house price. There are no specific offences or penalties outlined in the Determination itself, as it primarily serves to set the average house price for the Scheme. However, any breach of the Defence Home Ownership Assistance Scheme Act 2008, which governs the Scheme, could result in civil or criminal consequences. These may include fines, imprisonment, or other penalties as prescribed by the Act. The exact penalties would depend on the nature and severity of the breach, but the Act provides a framework for enforcing compliance and ensuring the proper administration of the Scheme. The Determination is intended to facilitate this by providing a clear and legally binding figure for the average house price, which is essential for the accurate calculation of subsidies.