EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO. 287
FIRST HOME OWNERS REGULATIONS (AMENDMENT)
Issued by the Authority of the Minister for Community Services and Health.
The First Home Owners Act 1983 (“the Act”) provides that assistance shall be paid to eligible persons in accordance with the regulations. The existing regulations require that that an eligible person own and occupy or intend to occupy the dwelling for the whole or part of each month for which a payment of assistance is to made. The regulations provide a schedule of annual amounts from which the monthly payments are drawn.
The amending regulations delete the monthly eligibility period and substitute an annual eligibility period. The regulations create a procedure whereby an eligible person is required to declare each year that he or she owns and occupies or intends to occupy the dwelling as a principal place of residence.
Where a person fails to make the declaration or provides information which indicates that the applicant no longer owns and occupies or intends to occupy the dwelling as a principal place of residence, the proposed regulations prevent the payment of instalments for the next year.
The amending regulations also provide that instalments of less than ten dollars shall not be made. Where an instalment would be less than ten dollars that instalment is increased to ten dollars by drawing from later instalments. The regulations will enable instalments in a year to be drawn, where necessary, from the later year’s entitlement notwithstanding that no declaration had been furnished in relation to that later year.
The regulations eliminate payments of minimal amounts over the five year period.
The amending regulations also provide that where a sole applicant or each of joint applicants to an application dies, assistance is not payable.
Finally, the amending Regulations preserve the operation of the Principal Regulations in relation to a person who has ceased to be eligible for assistance prior to the commencement of the amending regulations. That person can again become eligible for assistance by owning and either occupying or intending to occupy the dwelling within twelve months of having ceased to be eligible. The amending regulations will become applicable when that event occurs.
Overview
The First Home Owners Regulations (Amendment) 1987, issued under the authority of the Minister for Community Services and Health, amends the existing First Home Owners Act 1983. The Act provides financial assistance to eligible first home buyers, with the regulations determining the specific conditions of eligibility and payment. The amendment seeks to address potential issues of ineligibility and ensure that assistance is only provided to those genuinely meeting the criteria. The key changes include the introduction of an annual eligibility period, requiring eligible persons to declare their ongoing ownership and occupancy of the dwelling as their principal place of residence each year. Failure to make this declaration, or providing information indicating otherwise, will result in the cessation of payments for the following year. The amendments also aim to streamline payments by eliminating instalments of less than ten dollars and ensuring that such amounts are drawn from later instalments or the next year’s entitlement if necessary. Additionally, the regulations prevent payments if an applicant dies, and clarify that individuals who have previously ceased to be eligible can regain eligibility by owning and either occupying or intending to occupy the dwelling within twelve months of their ineligibility.
Scope and Application
The First Home Owners Regulations (Amendment) Statutory Rules 1987 No. 287, issued under the authority of the Minister for Community Services and Health, amend the existing regulations made under the First Home Owners Act 1983. These regulations apply to eligible persons who seek assistance in accordance with the Act. They primarily alter the eligibility criteria by replacing the monthly eligibility period with an annual eligibility period, requiring eligible persons to declare annually that they own and occupy or intend to occupy the dwelling as their principal place of residence. Failure to make the required declaration or providing information indicating non-compliance will result in the cessation of payments for the following year. Additionally, the amendments ensure that instalments of less than ten dollars are not paid, with any such amounts being increased to ten dollars by drawing from subsequent instalments. Furthermore, the regulations prevent payments of minimal amounts over the five-year period and terminate assistance upon the death of a sole or joint applicant. The amendments also allow a person who has previously ceased to be eligible for assistance to re-qualify by owning and either occupying or intending to occupy the dwelling within twelve months of their ineligibility, with the new regulations applying from that point.
Key Provisions
The key provisions of the First Home Owners Regulations (Amendment) 2004 (C2004L00220) primarily focus on altering the eligibility criteria and payment structure for first home owner assistance. Under the original regulations, eligible individuals were required to occupy or intend to occupy the dwelling for every month they received assistance (Regulation 3(1)). However, the amendment shifts this requirement to an annual declaration. Eligible persons must now declare annually that they own and occupy, or intend to occupy, the dwelling as their principal place of residence (Regulation 4(1)). This change streamlines the eligibility process by reducing the frequency of required declarations from monthly to annual.
The amended regulations impose specific obligations on eligible persons. They must make a declaration each year to confirm their continued eligibility for the assistance program. Failure to declare, or providing information that indicates they no longer meet the eligibility criteria, results in the cessation of payment instalments for the subsequent year (Regulation 4(2)). This requirement ensures that the assistance program remains targeted towards those who genuinely need and are actively using the support to own their principal residence.
Breach of these obligations has specific consequences under the amending regulations. If an eligible person fails to make the required annual declaration or provides false information, they will not receive any instalments for the following year (Regulation 4(2)). Additionally, the regulations stipulate that instalments of less than ten dollars will not be made, with any shortfall being compensated from subsequent instalments (Regulation 5(1)). This provision helps to avoid the administrative burden of processing and distributing minimal payments, which could be less than ten dollars.
The amendments also include provisions for scenarios such as the death of a sole or joint applicant, where assistance is no longer payable (Regulation 6). Furthermore, the regulations ensure that individuals who previously ceased to be eligible for assistance can re-qualify by owning and either occupying or intending to occupy the dwelling within twelve months of the cessation of their eligibility (Regulation 7). This flexibility allows for a more responsive and inclusive assistance program.