Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2021

Administered by Department of Defence

Legislation au F2021L00791 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2021

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 2021.

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 $777,343 for the 2021-2022 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 2020 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 2021-2022 financial year is $26,735 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 2021

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 2021-2022 year from which home loan subsidy payments rates are determined. The average house price for the 2021-2022 financial year is $26,735 higher than the figure determined for 2020-2021.

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 2021 was enacted to address the need for an updated average house price figure for the Defence Home Ownership Assistance Scheme, which is established under the Defence Home Ownership Assistance Scheme Act 2008. This scheme provides financial assistance to eligible current and former members of the Australian Defence Force to purchase homes. The determination was made by the Assistant Secretary People Policy and Employment Conditions, as a delegate of the Minister for Defence, under the authority conferred by subsection 52(1) of the Act. The policy objective of the Determination is to ensure that the Scheme remains responsive to fluctuations in the housing market, thereby supporting ADF members and their families by providing a home loan subsidy that reflects the current market conditions. The Determination sets the average house price for the 2021-2022 financial year at $777,343, which is $26,735 higher than the previous year’s figure. This adjustment aligns the Scheme with the most recent statistical data on national average house prices and regional weightings, ensuring that the assistance provided is commensurate with the actual cost of housing. The Determination is designed to uphold the human rights of ADF members by supporting their right to just and favourable conditions of work and to an adequate standard of living, including adequate housing, as recognised under international human rights instruments.

Scope and Application

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2021 applies to the Defence Home Ownership Assistance Scheme established under the Defence Home Ownership Assistance Scheme Act 2008, which is designed to provide home loan subsidies to eligible members of the Australian Defence Force (ADF), including current and former members. This Determination is made by the delegate of the Minister for Defence and is applicable across Australia, covering both urban and regional areas. The Determination sets the average house price for the 2021-2022 financial year, which is integral to calculating the monthly subsidy payments under the Scheme. This Determination does not specify any exclusions or exemptions but is instead aimed at adjusting the average house price annually to reflect changes in the housing market, ensuring that the Scheme remains responsive to market conditions. The authority for this amendment is derived from subsection 52(1) of the Defence Home Ownership Assistance Scheme Act 2008, which allows the Minister to set the average house price by determination. The average house price for the 2021-2022 financial year has been set at $777,343, which is $26,735 higher than the previous year's figure, reflecting the upward trend in house prices. This ensures that the Scheme continues to support ADF members in purchasing homes and thereby improves retention and recruitment rates within the ADF.

Key Provisions

The main operative sections of the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2021 (the Determination) are found in section 4, which provides for the amendment of the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2018 (the Principal Determination). Specifically, Item 1 of Schedule 1 amends section 6 of the Principal Determination to include the new average house price of $777,343 for the 2021-2022 financial year. This amendment is made under the authority of subsection 52(1) of the Defence Home Ownership Assistance Scheme Act 2008 (the Act), which grants the Minister for Defence the power to set the average house price for the Scheme by determination. The average house price is determined annually to reflect changes in the housing market. The Determination imposes specific obligations and requirements on the parties involved. Under the Act, the Minister for Defence, through the Assistant Secretary People Policy and Employment Conditions, is responsible for setting the average house price for the Scheme. This process requires consideration of national average house price and regional weighting data, derived from statistical data published by the Australian Bureau of Statistics. The Assistant Secretary must ensure that the average house price is set annually, providing a mechanism for the Scheme to adjust to market changes. The obligation to consult with relevant authorities, including the Treasury, the Department of Finance, and the Australian Bureau of Statistics, is also part of the process for setting the average house price. The Determination includes provisions for civil and criminal consequences for breaches, though specific penalties are not detailed within the Determination itself. Under the Defence Home Ownership Assistance Scheme Act 2008, breaches of the Act or its regulations may result in penalties, including fines and, in some cases, imprisonment. The maximum penalties for breaches are outlined in the Act but are not repeated in the Determination. It is important to refer to the Defence Home Ownership Assistance Scheme Act 2008 for detailed information on potential penalties for non-compliance with the Scheme's requirements. The Determination ensures that the average house price is set in accordance with the statutory requirements and that the Scheme operates effectively to support eligible members of the Australian Defence Force.

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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.