Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2023

Administered by Department of Defence

Legislation au F2023L00800 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 2023

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).

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 Assistant 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 March 2023. It is calculated using statistical data 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 2023-2024 financial year is $93,108 less than the figure determined for the previous year, reflecting downward movement in the market and house prices generally.

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 2023.

Section 3 of this Determination provides that the Determination is made under subsection 52 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 $912,289 for the 2023-2024 financial year.

Consultation

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 2023

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 2023–2024 year from which home loan subsidy payments rates are determined. The average house price for the 2023–2024 financial year is $93,108 less than the figure determined for 2022-2023.

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 2023 was enacted to address the need for an annual adjustment of the average house price used in calculating the monthly subsidy amount for the Defence Home Ownership Assistance Scheme (the Scheme). This scheme, established under the Defence Home Ownership Assistance Scheme Act 2008, provides home loan subsidies to eligible current and former Australian Defence Force (ADF) members. By amending the average house price, the Determination aims to ensure that the Scheme remains aligned with current housing market conditions and thereby supports ADF members in achieving home ownership, contributing to improved retention and recruitment rates within the ADF. The Determination was made by the Assistant Secretary People Policy and Employment Conditions, acting under the authority conferred by subsection 52(1) of the Act. The policy objective is to support ADF members and their families in securing adequate housing, thereby promoting the right to just and favourable conditions of work and an adequate standard of living 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 2023 amends the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2018 to set the average house price for the purpose of calculating the monthly subsidy amount for the Defence Home Ownership Assistance Scheme. The Scheme provides a home loan subsidy to eligible current and former Australian Defence Force members to improve retention and recruitment rates by offering subsidy payments to assist them to purchase homes for themselves and their families. The Scheme's objective is to ensure that ADF members do not suffer disadvantage due to the requirement for them to travel to new posting locations. This Determination applies to the Assistant Secretary People Policy and Employment Conditions, who has been delegated the power to set the average house price under the Scheme. The average house price is determined annually for a financial year, taking into account the national average house price and regional weighting data. The average house price for the 2023-2024 financial year is $912,289, which is $93,108 less than the figure determined for the previous year. This Determination has a national jurisdictional reach and applies to eligible ADF members across Australia. There are no stated exclusions, exemptions, or thresholds in this Determination. The Assistant Secretary People Policy and Employment Conditions has the power to extend or restrict the application of this Determination through subordinate instruments.

Key Provisions

The Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Amendment Determination 2023 primarily involves the amendment of the average house price used in the Defence Home Ownership Assistance Scheme for the 2023-2024 financial year. Section 52(1) of the Defence Home Ownership Assistance Scheme Act 2008 empowers the Minister to set the average house price for the Scheme by determination, and this power has been exercised by the Assistant Secretary People Policy and Employment Conditions, who has determined the average house price to be $912,289 for the 2023-2024 financial year (section 4, Schedule 1, item 1). This determination is made by considering the national average house price and regional weighting data, ensuring the Scheme remains responsive to changes in the housing market (subsection 52(2)). The average house price is determined annually to reflect the current market conditions, and this particular figure represents a decrease of $93,108 from the previous year (subsection 52(3)). The Act imposes several obligations on the parties involved. The Assistant Secretary People Policy and Employment Conditions is tasked with the responsibility of determining the average house price annually, taking into account the statistical data provided by the Australian Bureau of Statistics (subsection 52(2)). This obligation ensures that the Scheme's calculations are based on the most accurate and current data available. Additionally, the Office of Best Practice Regulation within the Department of the Prime Minister and Cabinet has determined that a regulation impact statement is not required for this amendment, as per OBPR exemption no.10425. This indicates that the amendment has been reviewed for its potential impact and deemed to be in compliance with regulatory standards. There are no explicit offences, penalties, or consequences for breach outlined in the explanatory statement. However, the accuracy and timeliness of the average house price determination are crucial for the proper functioning of the Defence Home Ownership Assistance Scheme. Failure to accurately determine and update the average house price could potentially lead to inconsistencies in the subsidy payments provided to eligible ADF members, which could affect the Scheme's objectives of improving retention and recruitment rates. Although no specific penalties are mentioned, the importance of adhering to the statutory requirements underscores the need for precise and timely compliance with the provisions of the Act.

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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.