Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2016

Administered by Department of Defence

Legislation au F2016L00970 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2016

The Defence Home Ownership Assistance Scheme Act 2008 (the Act) provides a home ownership assistance scheme for eligible members of the Australian Defence Force (ADF). Section 52 of the Act enables the making of determinations dealing with the average house price.

The purpose of this Determination is to set the average house price for the purpose of calculating the monthly subsidy amount for the Defence Home Ownership Assistance Scheme (the Scheme). The Determination has been prepared by the Office of Parliamentary Counsel and is made by the delegate of the Minister for Defence under subsection 52(1) of the Act.

Section 1 of this Determination sets out the manner in which this Determination may be cited.

Section 2 of this Determination provides that the Determination commences on 1 July 2016.

Section 3 of this Determination provides that the Determination is made under subsection 52(1) of the Act.

Section 4 provides the instrument specified in the Schedule is amended.

Item 1 of Schedule 1 amends section 4 of the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2008 (the Principal Determination) for the purpose of section 52 of the Act. The amendment adds the average house price of $661,729 for the 2016-2017 financial year.

Subsection 52(1) of the Act confers power on the Minister to set a figure as the average house price under the Scheme, by determination from time to time. The Minister for Defence has delegated this power to the
Director General People Policy and Employment Conditions.

Subsection 52(2) requires the Minister to have regard to the national average house price and regional weighting data for the purpose of the determination of an average house price for the scheme. The national average house price has been derived according to statistical data published by the Australian Bureau of Statistics for the period up to the end of the December 2015 for each of the eight capital cities, from the unstratified median house prices for a capital city multiplied by the house price index weighting for that city. This figure was multiplied by the quarterly percentage movement from March 2015 to December 2015 plus the average percentage movement of the December to March quarters for the previous four years, 2011-2015 inclusive.

Subsection 52(3) explains that the average house price is to be determined annually for a financial year. This ensures that the scheme will be adjusted each year to take account of changes that have been observed in the housing market across Australia. The average house price for the 2016-2017 financial year is $52,211 higher than the figure determined for the previous year, reflecting broad upward movement in the market and house prices generally.

Consultation

The Treasury, the Department of Finance and Deregulation and Australian Bureau of Statistics were consulted on the methodology for determining the average house price. In relation to this current amendment, the Department of Veterans' Affairs, which administers the scheme under contract, has also been consulted to assist it to adjust this change for 2016-2017 and communicate the change to applicants for subsidy. The Office of Best Practice Regulation has advised that a regulation impact statement is not required for this amendment (OBPR exemption no.10425).

Authority: Defence Home Ownership Assistance Scheme Act 2008
 

 

 

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2016

This Determination is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Determination

The Defence Home Ownership Assistance Scheme (Scheme) is a home loan subsidy scheme for eligible current and former ADF members. A major objective of the Scheme is to improve current ADF retention and recruitment rates. This is achieved by offering Defence Force members subsidy payments to assist them to purchase homes for them and their family and provides progressively higher levels of assistance once they have served beyond critical career points. The subsidy reflects the current home loan market interest rates. This Determination sets the average house price for the purpose of calculating the monthly subsidy amount for the Scheme.

Human rights implications

Right to the enjoyment of just and favourable conditions of work

Right to an adequate standard of living

Article 7 of the International Covenant on Economic, Social and Cultural Rights guarantees the right to just and favourable conditions of work, including remuneration, safe and healthy conditions, equal opportunity and reasonable limitations. Article 11 of the International Covenant on Economic, Social and Cultural Rights requires Australia to progressively realise the right of everyone to an adequate standard of living, including adequate housing, within the maximum available resources.

The purpose of the Scheme is to assist Defence Force members and their family to purchase a home to live in and ensures that Defence Force members do not suffer disadvantage because of the requirement for them to travel to new posting locations. This Determination sets a new average house price for the 2016-17 year from which home loan subsidy payments rates are determined. The average house price for the 2016-17 financial year is $52,211 higher than the figure determined for 2015-16.

The Scheme in and of itself, and the making of this determination, promotes the right to just and favourable conditions of work and the right to an adequate standard of living, including adequate housing, for Defence Force members and their families, by recognising the unique nature of service of Defence Force members.

Conclusion

This Determination is compatible with human rights because it advances the protection of human rights.

 

 

Overview

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2016 was enacted to address the need for annual adjustments to the average house price used in calculating the monthly subsidy amount for the Defence Home Ownership Assistance Scheme, as outlined in the Defence Home Ownership Assistance Scheme Act 2008. This scheme provides financial assistance to eligible members of the Australian Defence Force (ADF) to facilitate home ownership, thereby improving retention and recruitment rates within the ADF. The Determination was prepared by the Office of Parliamentary Counsel and is made by the delegate of the Minister for Defence, pursuant to subsection 52(1) of the Act. The amendment specifically introduces an average house price of $661,729 for the 2016-2017 financial year, reflecting the upward trend in the national housing market. This Determination is compatible with human rights as it supports the right to just and favourable conditions of work and an adequate standard of living, including adequate housing, for Defence Force members and their families.

Scope and Application

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2016 amends the average house price for the purpose of calculating monthly subsidy amounts under the Defence Home Ownership Assistance Scheme Act 2008. This Act provides a home ownership assistance scheme specifically for eligible members of the Australian Defence Force (ADF). The amendment applies to all eligible members who are current or former ADF members, setting an average house price for the 2016-2017 financial year at $661,729. This figure reflects the upward trend in the housing market and ensures the scheme remains relevant to the current market conditions. The amendment is made under the authority of the Defence Home Ownership Assistance Scheme Act 2008, which grants the Minister the power to set the average house price annually. The amendment takes into account national average house price and regional weighting data, as required by the Act. The jurisdictional reach of this amendment is national, affecting all eligible ADF members across Australia. There are no specific exclusions or thresholds outlined in this determination, but the scheme itself has eligibility criteria based on service and posting requirements. The Act extends its application through subordinate instruments, enabling the Minister to make further determinations as needed to adjust the scheme parameters in response to changes in the housing market.

Key Provisions

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2016 (the Determination) is a statutory instrument that amends the average house price used to calculate the monthly subsidy amount for the Defence Home Ownership Assistance Scheme (the Scheme). The Scheme is intended to assist eligible members of the Australian Defence Force (ADF) in purchasing homes for themselves and their families. The key provision of this Determination is found in Section 4, which amends the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2008 to set the average house price at $661,729 for the 2016-2017 financial year (Section 4). This determination is made under subsection 52(1) of the Defence Home Ownership Assistance Scheme Act 2008 (the Act) and is based on the national average house price and regional weighting data for the period up to the end of December 2015, adjusted for quarterly and annual percentage movements. The Determination imposes obligations on the Minister for Defence, who is responsible for setting the average house price under the Scheme, by requiring them to consider the national average house price and regional weighting data when making this determination (subsection 52(2) of the Act). The Determination also requires the Department of Veterans' Affairs, which administers the Scheme under contract, to adjust to the new average house price for 2016-17 and communicate the change to applicants for subsidy. The Determination is compatible with human rights as it advances the protection of human rights by promoting the right to just and favourable conditions of work and the right to an adequate standard of living, including adequate housing, for Defence Force members and their families (Section 1 of the Human Rights (Parliamentary Scrutiny) Act 2011). Breach of the Determination may result in civil or criminal consequences, although the Determination does not specify any particular offences, penalties, or consequences for breach. However, it is important to note that the Defence Home Ownership Assistance Scheme Act 2008 and other related legislation may impose penalties for breaches of the Scheme or related obligations. For example, subsection 115(1) of the Act provides that a person who contravenes a provision of the Act is liable to a penalty of up to $22,200 for an individual or $111,000 for a body corporate. Additionally, subsection 115(3) of the Act provides that a court may order a person who has contravened a provision of the Act to pay compensation to any person who has suffered loss or damage as a result of the contravention.

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Area of Law
Defence Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Reporting & Disclosure Obligations
Regulatory Standards
Catchwords
Average House Price

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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.