First Home Owners Regulations (Amendment) 1994 No. 347
EXPLANATORY STATEMENT
STATUTORY RULES 1994 No. 347
Issued by authority of the Minister for Housing and Regional Development.
FIRST HOME OWNERS ACT 1993
FIRST HOME OWNERS REGULATIONS (AMENDMENT)
Sub-section 42(1) of the First Home Owners Act 1983 ("the Act") provides that the Governor-General may make Regulations not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed.
Sub-section 23(1) provides that subject to the Act assistance to a sole applicant or to joint applicants shall be paid in accordance with the regulations.
The termination of the First Home Owners Scheme was announced as part of the Budget delivered on 21 August 1990 the Act was amended to preclude payment of assistance to sole or joint applicants whose prescribed date (date of contract to buy or build or of commencing to build as an owner-builder) was later than 21 August 1990. Eligible applicants (those who currently own and occupy their homes) with prescribed dates immediately prior to 22 August 1990 will continue to receive assistance by way of monthly instalments over a 5 year period ending in August 1995
In view of the costs of keeping the First Home Owners Scheme operative until August 1995 it is proposed to pay applicants a one off sum which is the aggregate of their remaining unpaid monthly entitlements. The maximum possible monthly payment for applicants in their fifth and final year is only $29 and it is expected that their aggregation, with a single final payment of up to approximately $250 in November 1994, would be welcomed by remaining applicants.
The First Home Owners Regulations (Amendment) amends the Regulations by providing that in spite of any other provision of the Regulations the Secretary to the Department of Housing and Regional Development may pay as a lump sum the balance of an amount of assistance that would but for the Regulation be payable to an applicant in instalments.
Overview
The First Home Owners Regulations (Amendment) 1994, issued under the authority of the Minister for Housing and Regional Development, provides amendments to the regulations governing the First Home Owners Act 1983. This amendment was introduced to address the financial burden of maintaining the First Home Owners Scheme until its scheduled termination in August 1995. As a result of the scheme's termination, the Act was modified to prevent the provision of assistance to applicants with prescribed dates after 21 August 1990. However, eligible applicants with prescribed dates before this cutoff were allowed to continue receiving assistance in monthly instalments until August 1995. To alleviate the administrative costs and expedite the payment process for these remaining applicants, the Regulations were amended to enable the Secretary to the Department of Housing and Regional Development to pay the balance of their remaining unpaid monthly entitlements as a single lump sum, expected to be around $250, by November 1994.
Scope and Application
The First Home Owners Regulations (Amendment) 1994 applies to individuals and entities participating in the First Home Owners Scheme, specifically those who are eligible for assistance under the First Home Owners Act 1983. This legislation primarily concerns first-time home buyers who meet the criteria set out in the Act, with a particular focus on those whose prescribed dates of contract to buy or build, or commencement of building as an owner-builder, were before 22 August 1990. The regulations amend the existing payment structure to allow for a lump sum payment of remaining unpaid monthly entitlements to these eligible applicants, rather than continuing the scheme with the smaller monthly instalments that would have been due. The geographic scope of the Act and its regulations is nationwide, as it pertains to the Commonwealth's First Home Owners Scheme. The regulations extend to any person or entity within Australia that qualifies under the Act. The changes introduced by the Amendment are intended to address the financial implications of continuing the scheme until its scheduled conclusion in August 1995, particularly by providing a more substantial payment to eligible applicants before the scheme’s termination.
Key Provisions
The First Home Owners Regulations (Amendment) 1994 No. 347 primarily focuses on altering the payment structure of the First Home Owners Scheme (section 42(1)). Under the original regulations, assistance was paid in monthly instalments over a five-year period to eligible applicants, provided their prescribed date was prior to 22 August 1990. However, due to the termination of the Scheme announced on 21 August 1990, the amendments now allow for the payment of a lump sum to eligible applicants instead of continuing with the instalments. This one-off payment is intended to cover the remaining unpaid monthly entitlements, which, given the reduced monthly payments towards the end of the Scheme, would amount to approximately $250 in November 1994.
The obligations imposed by these regulations primarily concern the Secretary to the Department of Housing and Regional Development. They must ensure that the lump sum payments are processed correctly and efficiently to all eligible applicants whose prescribed date falls within the specified criteria. This includes verifying the applicants' eligibility, calculating the precise amount due, and making the lump sum payments by the stipulated time.
Failure to comply with these regulations may result in civil or administrative penalties. While the regulations themselves do not specify the exact penalties for non-compliance, the overarching legislation, the First Home Owners Act 1993, provides a framework within which such penalties might be determined. Penalties could include financial penalties, corrective actions, or other measures designed to ensure compliance with the Act and its regulations. The exact nature and severity of these penalties would depend on the specific circumstances of the non-compliance and any relevant administrative or judicial processes.