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EXPLANATORY STATEMENT
STATUTORY RULES 1986 NO. 312
FIRST HOME OWNERS REGULATIONS (AMENDMENT)
Issued by Authority of the Minister for Housing and Construction
The First Home Owners Act 1983 (“the Act”) provides that assistance shall not be paid to an applicant if the amount of his taxable income for the relevant year exceeds a prescribed income limit. Ordinarily, the relevant year of income is the financial year preceding the date on which the applicant entered into the contract to purchase or build his home, or in the case of owner-builders, commenced the construction of his home (“the prescribed date”). However, section 22 of the Act under certain circumstances permits the applicant’s eligibility to be assessed on the income of the year in which the precribed date falls (“the current year”), or the following year (“the succeeding year”). Where section 22 applies, sub-section 19(2) provides for the applicant’s income in the relevant year to be reduced in accordance with the Regulations under the Act.
The existing Regulations provide certain formulae to be used in the calculation of the reduced amount of taxable income (Regulation 4A). The formulae are based on yearly changes to average weekly earnings. This ensures equity with applicants who have purchased their home in the same year but are being assessed on the basis of the income for an earlier year (i.e., the preceding year).
Currently, Regulation 4A provides appropriate formulae in cases where the applicant’s relevant year of income is the 1983/84 year or the 1984/85 year. Statutory Rule No. will amend Regulation 4A to provide for additional formulae in cases where the applicant’s relevant year of income is the 1985/86 year.