Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2020

Administered by Department of Defence

Legislation au F2020L00773 Not in force Legislative Instrument

Legislation content

EXPLANATORY STATEMENT

Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2020

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 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 2020.

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 6 of the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2018 (the Principal Determination) for the purpose of section 52 of the Act. The amendment adds the average house price of $750,608 for the 2020-2021 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 Assistant Secretary 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 2019 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.

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 2020-2021 financial year is $32,537 higher than the figure determined for the previous year, reflecting upward movement in the market and house prices generally.

Methodology

The Treasury, the Department of Finance and Australian Bureau of Statistics were consulted on the methodology for determining the average house price under the scheme when it began in 2008.

Regulation Impact

The Office of Best Practice Regulation within the Department of the Prime Minister and Cabinet has advised that a regulation impact statement is not required for this amendment (OBPR exemption no.10425).

Authority: Subsection 52(1)
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 2020

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 (the Scheme) is a home loan subsidy scheme for eligible current and former Australian Defence Force (ADF) members. A major objective of the Scheme is to improve current ADF retention and recruitment rates. This is achieved by offering ADF 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 ADF members and their family to purchase a home to live in and ensures that ADF 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 2020-2021 year from which home loan subsidy payments rates are determined. The average house price for the 2020-2021 financial year is $32,537 higher than the figure determined for 2019-2020.

The Scheme 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 ADF members and their families by recognising the unique nature of service of ADF members.

Conclusion

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

 

Fiona Louise McSpeerin, Assistant Secretary People Policy and Employment Conditions 

 

Overview

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2020 was enacted to provide an updated average house price for the Defence Home Ownership Assistance Scheme (the Scheme) for the 2020-2021 financial year. This Determination was introduced to address the need for annual adjustments to the average house price to reflect changes in the housing market, ensuring the Scheme remains relevant and effective. The Defence Home Ownership Assistance Scheme Act 2008 authorised the making of this Determination, which was created by the delegate of the Minister for Defence. The policy objective of the Scheme is to support the retention and recruitment of eligible current and former Australian Defence Force members by offering them home loan subsidies that reflect the current home loan market interest rates, thereby assisting them in purchasing homes for themselves and their families. This amendment ensures that the Scheme continues to provide adequate assistance to ADF members and their families, promoting their right to just and favourable conditions of work and an adequate standard of living, including adequate housing.

Scope and Application

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2020 applies to the Defence Home Ownership Assistance Scheme established under the Defence Home Ownership Assistance Scheme Act 2008, which provides financial assistance to eligible current and former members of the Australian Defence Force for the purchase of a home. The Determination specifically sets the average house price for the 2020-2021 financial year, which is used in calculating the monthly subsidy payments under the Scheme. This legislative instrument is made by the delegate of the Minister for Defence, specifically the Assistant Secretary People Policy and Employment Conditions, in accordance with the powers conferred by subsection 52(1) of the Act. The Determination is applicable nationally across Australia, as it pertains to the overall average house price derived from data across the eight capital cities. There are no specific exclusions or exemptions outlined in this Determination, though it is subject to annual adjustments based on the national average house price data. The Determination is compatible with human rights, particularly the right to just and favourable conditions of work and the right to an adequate standard of living, by ensuring ADF members can afford adequate housing without facing disadvantages due to their service requirements.

Key Provisions

The main operative sections of the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2020 include Section 1, which details how this Determination may be cited; Section 2, which sets the commencement date of the Determination as 1 July 2020; and Section 4, which amends the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2018. The primary purpose of this Determination is to set the average house price for the 2020-2021 financial year, which has been set at $750,608, as specified in the Schedule. This figure is higher by $32,537 than the average house price determined for the previous financial year. The obligations imposed by the Act on the parties it governs include the requirement that the Minister for Defence, or their delegate, must determine an annual average house price for the purpose of calculating the monthly subsidy amount under the Scheme. This process must consider the national average house price and regional weighting data, as mandated by subsection 52(2) of the Defence Home Ownership Assistance Scheme Act 2008. The Assistant Secretary People Policy and Employment Conditions has been delegated this power and is responsible for ensuring that the average house price is determined annually, reflecting changes in the housing market. This ensures the Scheme remains responsive to economic conditions and market trends. There are no specific offences, penalties, or civil/criminal consequences outlined in the Determination itself for breach of the provisions. However, the Defence Home Ownership Assistance Scheme Act 2008 may have other sections that address breaches of the Scheme's provisions. Typically, any breaches of the Scheme's provisions could result in financial penalties or other administrative consequences, although the exact penalties are not specified in this Determination. The Determination ensures that the average house price is set in accordance with the legislative requirements and statistical data, thereby maintaining the integrity and effectiveness of the Scheme.

Legal classification tags

Area of Law
Defence Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Commencement Provisions
Licensing & Registration

Interactions

Authorises

All Versions

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.