Defence Service Homes Amendment Act 1980

Legislation au C2004A02205 Not in force Act

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Defence Service Homes Amendment Act 1980

No. 4 of 1980

 

An Act to amend the Defence Service Homes Act 1918

[Assented to 19 March 1980]

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Defence Service Homes Amendment Act 1980.

(2) The Defence Service Homes Act 1918 is in this Act referred to as the Principal Act.

Commencement

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Section 9 shall come into operation on the day on which section 11 of the Defence Service Homes Amendment Act 1978 comes into operation.

Title

3. The title of the Principal Act is repealed and the following title substituted:

“An Act to provide assistance to members of the Defence Force and certain other persons to acquire homes.”.

Sale of dwelling-houses

4. Section 19 of the Principal Act is amended by omitting from sub-section (7) “, and of interest accumulated thereon,”.

Maximum advances

5. Section 21 of the Principal Act is amended—

(a) by omitting from sub-section (1) “(not exceeding ninety per centum of the total value of the property in respect of which the advance is made)”; and

(b) by omitting sub-section (2).


Conditions of grant of advance

6. Section 24 of the Principal Act is repealed.

Mortgage required to secure advance

7. Section 25 of the Principal Act is amended by omitting “and such additional security (if any) as the Corporation requires” and substituting “and, if the Corporation considers that that security is not adequate for the advance, such additional security as the Corporation requires”.

Payment of purchase money and repayment of advance

8. Section 29 of the Principal Act is amended by omitting from sub-section (2) “, not being less than Two dollars”.

Insurance of dwelling-houses, &c.

9. Section 38 of the Principal Act is amended—

(a) by inserting after paragraph (a) of sub-section (1) the following paragraph:

“(aa) any dwelling-house in relation to which the Corporation proposes to make an advance, being a dwelling-house in which the applicant for the advance has an interest;”,

(b) by inserting after sub-section (4) the following sub-sections:

“(4a) Notwithstanding sub-section (1), where—

(a) the Corporation has undertaken insurance in relation to a dwelling-house; and

(b) the Corporation was authorized to undertake that insurance by reason only that it proposed to make an advance in relation to the dwelling-house,

the insurance so undertaken in relation to the dwelling-house does not cease to have force and effect by reason of the death of the applicant for the advance or that the Corporation, for a reason other than that the applicant has disposed of his interest in the dwelling-house, no longer proposes to make an advance in relation to the dwelling-house, but, unless the insurance has already ceased to have force and effect, the Corporation shall, subject to sub-section (4b), give reasonable notice in such manner as it deems fit to the person having an interest, or to each person having an interest, in the dwelling-house of its intention to terminate the insurance on a day specified in the notice and, on the expiration of the day so specified, the insurance shall, unless it has previously ceased to have force and effect, cease to have any force and effect.

“(4b) Where, in a case to which sub-section (4a) applies by reason of the death of the applicant for an advance, the applicant is survived by a widow, the Corporation shall not give notice of its intention to terminate the insurance of the relevant dwelling-house unless and until it becomes satisfied that an advance will not be, or is unlikely to be, made to the widow in respect of that dwelling-house.

“(4c) Subject to this section, the Corporation may do all things necessary or convenient to be done for the purpose of the Corporation undertaking insurance and, in particular, but without limiting the generality of the foregoing, may enter into an agreement of a kind known as a concessions agreement with a person who is, or is likely to be, the mortgagee of property insured with the Corporation.

“(4d) At all times during which the Corporation has an interest in a dwelling-house or in any building materials on the site of a dwelling-house by reason of an advance or sale by the Corporation, the person liable to repay the advance or to pay the balance of the purchase money shall keep the dwelling-house or building materials insured—

(a) with the Corporation; or

(b) for such amount and against such risks as the Corporation, having regard to its interests in the dwelling-house or building materials, reasonably requires, under a contract of insurance with a person who is authorized under the Insurance Act 1973 to carry on insurance business and who has entered into an agreement of a kind known as a concessions agreement with the Corporation in respect of all dwelling-houses insured with that person in which the Corporation has interests.

“(4e) If, at any time, a dwelling-house to which sub-section (4d) applies is not insured as required by that sub-section or building materials to which that sub-section applies are not so insured, the dwelling-house or building materials shall be deemed to be insured with the Corporation and the person required by that sub-section to keep the dwelling-house or building materials insured shall be liable to the Corporation for premiums due to the Corporation in respect of the insurance of the dwelling-house or building materials undertaken by the Corporation.”; and

(c) by omitting paragraphs (a) and (b) of sub-section (5) and substituting the following paragraph:

“(a) deeming dwelling-houses in which the Corporation has an interest, not being dwelling-houses to which sub-section (4d) applies, to be insured with the Corporation;”.

Interest on moneys invested from the Defence Service Homes Insurance Trust Account

10. Section 40a of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-sections:

“(2) Interest on the investment of any moneys standing to the credit of the Defence Service Homes Insurance Trust Account shall be credited to that Account.


“(3) Moneys referred to in sub-section (2) shall, for the purpose of calculating the amount to be paid under sub-section (1), be deemed not to have been standing to the credit of the Defence Service Homes Insurance Trust Account during any period in respect of which interest earned on the moneys is payable to that Account by virtue of sub-section (2).”.

Dwelling-houses for incapacitated soldiers

11. Section 47 of the Principal Act is amended—

(a) by omitting from sub-section (1) “Department of Repatriation” and substituting “Department of Veterans’ Affairs”; and

(b) by omitting from sub-section (2) “the Minister for Repatriation” and substituting “the Minister”.

 

 

Overview

The Defence Service Homes Amendment Act 1980 was enacted to amend the Defence Service Homes Act 1918, addressing specific gaps in the original legislation related to home acquisition assistance for Defence Force members and certain other individuals. The Act was passed by the Parliament of Australia and received Royal Assent on 19 March 1980. Its primary objective was to refine and update provisions concerning the sale of dwelling houses, maximum advances, conditions for granting advances, mortgage requirements, payment terms, and insurance arrangements to better support the intended beneficiaries. The Defence Service Homes Amendment Act 1980 introduces changes to ensure that the legislative framework remains effective and responsive to the needs of Defence Force members and their families. By amending certain sections of the Defence Service Homes Act 1918, this Act aims to enhance the security and efficiency of home acquisition processes, ensuring that the financial support and insurance provisions are adequately aligned with contemporary requirements. The amendments focus on improving the clarity and functionality of the existing provisions, thereby strengthening the support system for those who have served or are serving in the Defence Force.

Scope and Application

The Defence Service Homes Amendment Act 1980 amends the Defence Service Homes Act 1918, with the purpose of providing assistance to members of the Defence Force and certain other persons to acquire homes. This Act applies to the Commonwealth of Australia, and it governs the activities of the Defence Service Homes Corporation, which is responsible for facilitating home acquisitions for eligible individuals. The Act applies to individuals who are members of the Defence Force or certain other persons, typically including veterans and their families, who are seeking to purchase or improve homes. The amendments introduced by this Act include changes to the conditions for advances, the requirement for mortgages, and the insurance of dwelling houses. Notably, the Act also specifies that certain provisions regarding insurance will continue to apply even if the applicant dies or if the Corporation decides not to make an advance, provided that reasonable notice is given to the interested parties. The Act's amendments extend the scope of the Principal Act by modifying existing provisions and introducing new sub-sections that offer clarity and additional protections for insured properties and the interests of the Corporation.

Key Provisions

The Defence Service Homes Amendment Act 1980 (sections 1-11) amends the Defence Service Homes Act 1918 by modifying provisions related to the sale of dwelling-houses, maximum advances, and conditions for granting advances. Section 4 removes the interest accumulated on the sale price of dwelling-houses from the amount that can be advanced. Section 5 removes the restriction that advances cannot exceed 90% of the property's value and eliminates the requirement to consider the applicant's financial situation when determining the advance amount. Section 6 repeals the conditions that must be met for an advance to be granted, while section 7 ensures that an adequate mortgage secures the advance. Section 8 removes the minimum purchase money requirement of two dollars. Section 9 revises the insurance provisions, ensuring that insurance remains in effect if the applicant dies or if the Corporation decides not to proceed with the advance, unless certain conditions are met. It also mandates that the person liable for repayment or purchase price keeps the dwelling house insured under specific conditions. Section 10 updates the interest calculation for the Defence Service Homes Insurance Trust Account. Lastly, section 11 updates the reference from "Department of Repatriation" to "Department of Veterans’ Affairs" and from "the Minister for Repatriation" to "the Minister". The Defence Service Homes Amendment Act 1980 imposes several obligations on the parties governed by the Act. The Corporation is required to ensure that advances are adequately secured by a mortgage (section 7). Additionally, the person liable for repayment or purchase price must keep the dwelling house insured under certain conditions (section 9). The Corporation is also required to maintain insurance on certain dwelling houses under specific circumstances, including when it has undertaken insurance and if the applicant for the advance has died or if the Corporation decides not to proceed with the advance (section 9(4a)). The Corporation must also notify the person with an interest in the dwelling house of its intention to terminate the insurance if certain conditions are met (section 9(4b)). The Defence Service Homes Amendment Act 1980 includes provisions for offences, penalties, and consequences for breaches. Although the Act does not explicitly state penalties for non-compliance, failure to meet the obligations and requirements imposed by the Act could result in civil or criminal consequences. For example, if the person liable for repayment or purchase price fails to keep the dwelling house insured as required, the dwelling house or building materials will be deemed to be insured with the Corporation, and the person will be liable for the premiums due (section 9(4e)). Additionally, if the Corporation fails to maintain insurance on certain dwelling houses under specific circumstances, it could result in legal action or other consequences. The maximum penalties for breaches of the Act are not specified in the text provided.

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Area of Law
Veterans' Affairs
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Reporting & Disclosure Obligations
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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.