EXPLANATORY STATEMENT
STATUTORY RULES 1987 NO. 68
FIRST HOME OWNERS REGULATIONS (AMENDMENT)
Issued by Authority of the Minister of State for Housing and Construction.
Statutory Rule 1987 No. makes a regulation under the First Home Owners Act 1983 (“the Act”) relating to the establishment of separate income limits for applicants without dependent children, and to provide increased income limits for all applicants.
Relevant amounts for the income test in section 23 of the Act
Section 23 of the Act provides a formula to determine the amount of assistance payable where the prescribed earnings of an applicant, or joint applicants exceed a prescribed amount but do not exceed a higher prescribed amount, and also provides that no assistance is payable where the applicant’s prescribed earnings exceed the higher prescribed amount. The First Home Owners Regulations (Amendment) amends Regulations 5 which prescribes the higher and lower relevant amounts for each of the four levels of assistance.
Higher and lower relevant amounts
Four categories of higher and lower relevant amounts are provided in Sub-regulation 5(3)
(i) $31,000 (higher relevant amount)
- $23,000 (lower relevant amount)
for joint applicants without dependent children;
(ii) $15,500 (higher relevant amount)
- $11,500 (lower relevant amount)
for single applicants without dependent children;
(iii) $33,000 (higher relevant amount
- $25,000 (lower relevant amount)
for applicants with one dependent child; and
(iv) $34,000 (higher relevant amount)
- $26,000 (lower relevant amount)
for applicants with two or more dependent children.
The revised income limits came into effect from 31 March 1987 and will apply to all applicants whose prescribed date, as defined in section 14 of the Act, occurs on or after that date.
Sub-regulations 5(1) and (2) provide that the higher and lower relevant amounts applicable to applicants with prescribed dates which fall between 1 October 1983 and 30 March 1987, inclusive, remain applicable to those applications.
Overview
The First Home Owners Regulations (Amendment) 1987 were enacted to address the need for updated income limits under the First Home Owners Act 1983. This legislation, issued by authority of the Minister of State for Housing and Construction, aimed to rectify discrepancies in income thresholds for first-time homebuyers by establishing separate income limits based on family composition. The policy objective was to ensure that the financial assistance provided under the Act is accessible to a broader range of eligible applicants, particularly those without dependent children and those with varying family sizes. By amending the relevant amounts for the income test, the regulation introduced more equitable income limits that better reflect the financial circumstances of different categories of applicants. These revised limits came into effect on 31 March 1987, applying to all applicants whose prescribed date fell on or after that date, while preserving the existing limits for applications with prescribed dates between 1 October 1983 and 30 March 1987.
Scope and Application
The First Home Owners Regulations (Amendment) Statutory Rule 1987 No. 68 applies to individuals and joint applicants seeking assistance under the First Home Owners Act 1983. It pertains specifically to the income limits for determining eligibility for assistance, establishing separate income thresholds for applicants based on their family status. This regulation amends the previously set income limits by introducing new higher and lower relevant amounts for different categories of applicants. These categories include joint applicants without dependent children, single applicants without dependent children, applicants with one dependent child, and applicants with two or more dependent children. The amendment came into effect from 31 March 1987, affecting all applicants whose prescribed date falls on or after this date, while maintaining the existing limits for applications with prescribed dates between 1 October 1983 and 30 March 1987. The geographic reach of this amendment is national, applying across all jurisdictions within Australia. It does not include any specific exclusions or exemptions beyond the income thresholds, and the application is extended through the subordinate instrument of statutory rules.
Key Provisions
The main operative sections of the First Home Owners Regulations (Amendment) (SR 1987 No. 68) concern the establishment of separate income limits for applicants without dependent children and the increase of income limits for all applicants. Specifically, section 5 of the Regulations prescribes four categories of higher and lower relevant amounts for income tests under section 23 of the First Home Owners Act 1983. These income limits determine the amount of assistance payable to applicants whose earnings fall within specified ranges. No assistance is payable if earnings exceed the higher prescribed amount. The income limits are adjusted for applicants based on whether they are single or joint applicants and the number of dependent children they have.
The obligations and requirements imposed by the Act and the Regulations primarily concern the income test for applicants seeking assistance under the First Home Owners Act. Applicants must ensure their prescribed earnings fall within the specified limits to be eligible for assistance. The Regulations mandate that applicants provide accurate information regarding their income and family composition to determine the applicable income limits. For joint applicants without dependent children, the income limits are set at $31,000 (higher relevant amount) and $23,000 (lower relevant amount). For single applicants without dependent children, the limits are $15,500 and $11,500, respectively. For applicants with one dependent child, the limits are $33,000 and $25,000, and for those with two or more dependent children, the limits are $34,000 and $26,000.
The First Home Owners Act and the accompanying Regulations do not explicitly outline specific offences, penalties, or consequences for breaches of the income limits. However, any misrepresentation or provision of false information to obtain assistance could potentially lead to civil or criminal consequences under broader legislative provisions governing fraud and misrepresentation. Inaccurate information provided with the intent to deceive could be subject to penalties under Australian law, including fines and imprisonment. It is important for applicants to adhere to the requirements and provide truthful information to avoid potential legal ramifications.