EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 197
FIRST HOME OWNERS ACT 1983
Issued by Authority of the Minister for Housing and Construction.
Statutory Rule 1984 No.197 makes regulations under the First Home Owners Act 1984 relating to the establishment of separate income limits for sole applicants without dependent children and to provide reduced income limits for all other applicants, and to the provision of a deflationary formula for the purpose of assessing the income of certain classes of applicant under the FHO Act.
The revised income limits will come into effect on 22 August 1984 and will apply to all applicants whose prescribed date, as defined in the Act, occurs on or after that date.
The income limits are set out below.
(i) | Sole applicants without dependent children | Upper limit Lower limit | $13,950 $10,000 |
(ii) | All other applicants | Upper limit Lower limit | $27,900 $20,000 |
Section 22 of the Act provides that the Secretary may direct that an applicant’s year of income, for the purposes of the income, is not to be the year of income prior to the year in which home acquisition occurred but rather is to be the next year or in some cases the year after that. To enable all applicants who have a common home-acquisition year to be tested against common income limits the Act provides, in section 19, that the later year’s income is to be reduced (or deflated) in the Regulations. The proposed Regulations provide a formula for the deflator, using a deflator derived from average weekly earnings.
Overview
The First Home Owners Act 1983 was enacted by the Parliament of Australia to address the problem of providing affordable home ownership opportunities for first-time buyers. The Act was designed to assist individuals and families in purchasing their first home by setting income limits that determine eligibility for certain benefits and support. Statutory Rule 1984 No. 197, issued by authority of the Minister for Housing and Construction, amends the Act by establishing separate income limits for different categories of applicants and introducing a deflationary formula to assess the income of certain classes of applicant. The revised income limits came into effect on 22 August 1984 and apply to all applicants whose prescribed date, as defined in the Act, occurs on or after that date. This regulatory change aims to ensure that all applicants with a common home-acquisition year are assessed against consistent income limits, thereby providing a fair and standardised approach to eligibility determination.
Scope and Application
Statutory Rule 1984 No. 197, made under the First Home Owners Act 1984, pertains to the establishment of specific income limits for various categories of applicants. These income limits are applicable to all individuals who meet the definition of an applicant as per the Act and whose prescribed date of application occurs on or after 22 August 1984. The Act distinguishes between sole applicants without dependent children, who have an income limit ranging from $10,000 to $13,950, and all other applicants, who have a higher income limit ranging from $20,000 to $27,900. Additionally, the Act includes provisions for adjusting the income assessment period for applicants, ensuring that their income is evaluated against consistent limits by applying a deflationary formula as outlined in the Regulations. The scope of this legislation is limited to the Commonwealth, affecting individuals seeking to benefit from the First Home Owners Act 1984 in Australia. The regulations do not specify any exclusions, exemptions, or thresholds beyond those detailed within the Act itself.
Key Provisions
The First Home Owners Act 1984, as amended by Statutory Rule 1984 No. 197, sets out specific income limits for applicants seeking assistance under the Act. For sole applicants without dependent children, the upper income limit is set at $13,950 and the lower limit at $10,000 (section 19(i)). For all other applicants, the upper income limit is $27,900 and the lower limit is $20,000 (section 19(ii)). These income thresholds are crucial as they determine the eligibility of applicants for financial assistance under the Act.
The Act imposes obligations on applicants to ensure their income falls within the specified limits. It also requires the Secretary to consider the year of income for assessment, not necessarily the year prior to home acquisition, but potentially the next year or even the year after, depending on the circumstances (section 22). To ensure fairness and consistency, the income for the later assessment year must be deflated using a formula derived from average weekly earnings (section 19). This deflationary formula is designed to provide a more accurate assessment of an applicant's financial status relative to their home acquisition date.
In terms of consequences for breaches, the Explanatory Statement does not explicitly outline specific offences or penalties within the Statutory Rules 1984 No. 197. However, the First Home Owners Act 1984 itself may contain provisions that address non-compliance, such as penalties for providing false or misleading information or failing to meet the specified income limits. Penalties for such breaches could include fines, disqualification from the program, or other administrative sanctions, as determined by the relevant authorities under the overarching Act.