Defence Service Homes Amendment Act 1989

Overview

The Defence Service Homes Amendment Act 1989 was enacted to amend the Defence Service Homes Act 1918, addressing certain issues related to the administration and eligibility criteria for housing subsidies for defence service personnel and their families. This Act was passed by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, aiming to refine the eligibility and conditions under which subsidised housing advances can be provided. The policy objective, as indicated by the Minister during the second reading speeches in the House of Representatives on 5 April 1989 and in the Senate on 23 May 1989, is to ensure that the housing subsidy system remains fair and appropriately targeted towards those who genuinely need assistance, thereby maintaining the integrity and effectiveness of the support provided to defence service personnel and their families.

Scope and Application

The Defence Service Homes Amendment Act 1989 is a Commonwealth Act that amends the Defence Service Homes Act 1918. It applies to persons and entities involved in transactions concerning subsidised advances for the purpose of acquiring, constructing, improving, or repairing homes for defence service personnel. This Act applies to all individuals and entities that have been or are purchasers or borrowers under the Defence Service Homes Act 1918, except where they are merely the personal representatives of deceased purchasers or borrowers. The Act's reach is national, given its enactment by the Commonwealth of Australia. The Act excludes certain individuals from the issuance of a certificate of entitlement in relation to subsidy on a subsidised advance, such as those who have executed a mortgage in favour of the relevant Corporation or have had a Corporation advance made to them for a term of 25 years or less. The Act may be further extended or restricted by subordinate instruments, although no such instruments are specified in the text.

Key Provisions

The Defence Service Homes Amendment Act 1989 amends the Defence Service Homes Act 1918, introducing several key changes. Section 3 redefines the terms "further advance" and "initial advance" by removing the previous definitions and substituting new ones. "Further advance" now refers to a subsidised advance to a person who has previously been a purchaser or borrower, but is not currently one, except in the case of a personal representative of a deceased purchaser or borrower. Similarly, an "initial advance" is a subsidised advance for a specified purpose to a person who has not previously been a purchaser or borrower, again excluding personal representatives of deceased purchasers or borrowers. Section 19 adds a new provision stating that the Secretary must not issue a certificate of entitlement for a subsidy on a subsidised advance, except with the approval of the Minister, unless the advance is an additional, widow's, or essential repairs advance. A "prescribed person" is defined as someone who has been a purchaser, borrower, or executed a mortgage in the past, but this does not include those who have received a Corporation advance or an initial or further advance. Section 50b removes the word "financial" from the annual report requirements, likely simplifying the reporting obligations. The Act imposes specific obligations on the parties it governs. The Secretary, under Section 19, is required to adhere to the new criteria for issuing certificates of entitlement for subsidised advances. This means the Secretary must ensure that such certificates are not issued to prescribed persons unless approved by the Minister, unless the advance falls into one of the specified categories. Additionally, the Act introduces new definitions for "further advance" and "initial advance," which must be applied when determining eligibility for these types of advances. The annual reporting requirements, as amended by Section 50b, mean that the reporting process must now exclude financial details, simplifying the reporting burden. The Act does not explicitly outline offences, penalties, or consequences for breaches within its text. However, non-compliance with the Act's provisions could lead to administrative or legal consequences. For instance, if the Secretary issues a certificate of entitlement in violation of Section 19, this could result in the certificate being invalid, potentially leading to disputes or financial repercussions for the affected parties. Similarly, misinterpreting the definitions of "further advance" and "initial advance" could result in improper allocation of subsidies, which might necessitate corrective actions. Although specific penalties are not detailed, breaches of the Act's provisions could be subject to the broader legal consequences available under the Defence Service Homes Act 1918 or other relevant legislation.