Housing Loans Insurance Amendment Act 1983

Legislation au C2004A02765 Not in force Act

Legislation content

Housing Loans Insurance Amendment Act 1983

No. 48 of 1983

 

An Act to amend the Housing Loans Insurance Act 1965 and the Commonwealth Functions (Statutes Review) Act 1981

[Assented to 21 September 1983]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Housing Loans Insurance Amendment Act 1983.

Commencement

2. This Act shall come into operation on the day on which it receives the Royal Assent.

PART II—AMENDMENTS OF THE HOUSING LOANS INSURANCE ACT 1965

Principal Act

3. The Housing Loans Insurance Act 19651 is in this Part referred to as the Principal Act.


Title

4. The title of the Principal Act is amended by omitting “Housing” and substituting “the provision of Dwelling-houses and Buildings other than dwelling-houses”.

Interpretation

5. Section 4 of the Principal Act is amended—

(a) by inserting after the definition of “approved security” in sub-section (1) the following definition:

“‘building’ includes any structure, but does not include a building or structure constructed, being constructed or intended to be constructed for a temporary purpose;”;

(b) by omitting from sub-section (1) the definition of “insurable loan” and substituting the following definition:

“‘insurable loan’ means a loan—

(a) made for any one or more of the following purposes, that is to say, of enabling the borrower—

(i) to acquire a prescribed interest in land;

(ii) to develop land, or complete the development of land, as residential land or non-residential land, being land in which the borrower has a prescribed interest;

(iii) to acquire a prescribed interest in land and develop the land, or complete the development of the land, as residential land or non-residential land;

(iv) to acquire a prescribed interest in land and construct, or complete the construction of, a dwelling-house, or a building other than a dwelling-house, on the land;

(v) to construct a dwelling-house or a building other than a dwelling-house, or complete the construction of a dwelling-house or a building other than a dwelling-house, on land in which the borrower has a prescribed interest;

(vi) to acquire a prescribed interest in land on which there is a dwelling-house or a building other than a dwelling-house;

(vii) to alter, improve or extend a dwelling-house, being a dwelling-house constructed on land in which the borrower has a prescribed interest;

(viii) to alter, improve or extend a building other than a dwelling-house, being a building constructed on land in which the borrower has a prescribed interest;


(ix) to meet expenses in respect of the provision or improvement of roads, kerbing, guttering or footpaths in connection with land in which the borrower has a prescribed interest, being land on which there is a dwelling-house or on which a dwelling-house is being constructed;

(x) to meet expenses in respect of the provision or improvement of roads, kerbing, guttering or footpaths in connection with land in which the borrower has a prescribed interest, being land on which there is a building other than a dwelling-house or on which a building other than a dwelling-house is being constructed; or

(xi) to discharge a mortgage, charge or other encumbrance over land in which the borrower has a prescribed interest; and

(b) the repayment of which (except in the case of a loan made for the purpose of enabling the borrower to alter, improve or extend a dwelling-house of the kind referred to in sub-paragraph (a) (vii) or to meet expenses of the kind referred to in sub-paragraph (a) (ix), being a loan made in accordance with terms and conditions approved by the Corporation) is secured by an approved security over—

(i) in the case of land that is used or intended to be used, in whole or in substantial part, for residential purposes—the interest of the borrower in the land; and

(ii) in any other case—the interest of the borrower in the land, a prescribed interest of any other person in the land or a prescribed interest of the borrower or any other person in any other land;”;

(c) by inserting in sub-section (2) “or to a building other than a dwelling-house” after “to a dwelling-house”;

(d) by omitting from sub-section (2) “in connexion with the dwelling-house” and substituting “in connection with the dwelling-house or the building other than a dwelling-house, as the case may be”; and

(e) by adding at the end thereof the following sub-section:

“(5) A reference in this Act to the development of land as non-residential land shall be read as a reference to—


(a) the development of the land for use for any one or more of the following purposes, namely—

(i) commercial, industrial, health care, cultural, educational, entertainment, recreational or community purposes; or

(ii) any purpose prescribed for the purposes of this sub-section,

including the carrying out of such works as are necessary or convenient to be carried out upon, or in relation to, the land for the purpose of enabling the land to be so developed; or

(b) the subdivision, or re-subdivision, of the land into blocks for use for any one or more of the purposes referred to in sub-paragraph (a) (i) or prescribed for the purposes of this sub-section, including the carrying out of such works as are necessary or convenient to be carried out upon, or in relation to, the land for the purpose of enabling the land to be so subdivided or re-subdivided.”.

PART III—AMENDMENT OF THE COMMONWEALTH FUNCTIONS (STATUTES REVIEW) ACT 1981

Principal Act

6. The Commonwealth Functions (Statutes Review) Act 19812 is in this Part referred to as the Principal Act.

Repeal of Part XIII

7. Part XIII of the Principal Act is repealed.

 

NOTE

1. No. 10, 1965, as amended. For previous amendments, see No. 93, 1966; No. 216, 1973 (as amended by No. 20, 1974); No. 39, 1977; and No. 36, 1978.

2. No. 74, 1981, as amended. For previous amendments, see No. 176, 1981; and No. 80, 1982.

Overview

The Housing Loans Insurance Amendment Act 1983 was enacted to address gaps in the existing framework for housing loans insurance, particularly by expanding the scope of insurable loans and the types of buildings covered under the Housing Loans Insurance Act 1965. This Act was passed by the Queen, in and with the advice and consent of the Senate and the House of Representatives of the Commonwealth of Australia, and received Royal Assent on 21 September 1983. The primary objective of this legislation was to clarify and extend the definition of insurable loans to encompass a broader range of purposes, including the acquisition, development, and construction of residential and non-residential properties, as well as improvements and alterations to existing buildings. By amending the Housing Loans Insurance Act 1965, the Act aimed to enhance the coverage and flexibility of insurance for housing loans, thereby supporting broader housing and development activities in Australia.

Scope and Application

The Housing Loans Insurance Amendment Act 1983 applies to the Housing Loans Insurance Act 1965 and the Commonwealth Functions (Statutes Review) Act 1981. It pertains to entities and individuals involved in the provision of dwelling-houses and buildings other than dwelling-houses, extending specifically to loans made for the acquisition, development, or construction of residential and non-residential properties. The Act is a Commonwealth Act and applies nationally across Australia. It amends the scope of insurable loans by broadening the purposes for which loans can be insured, including the development and construction of non-residential buildings, and the expenses related to infrastructure improvements. The Act does not explicitly mention exclusions, exemptions, or thresholds, but such details would be specified in subordinate instruments or regulations that may extend or restrict the application of the Act.

Key Provisions

The Housing Loans Insurance Amendment Act 1983 (C2004A02765) modifies the Housing Loans Insurance Act 1965 (the Principal Act) and the Commonwealth Functions (Statutes Review) Act 1981. The Act commences on the day it receives Royal Assent. The title of the Principal Act is amended to reflect a broader scope of activities, specifically the provision of dwelling-houses and buildings other than dwelling-houses (section 4). The interpretation section (section 5) of the Principal Act is revised to define "building" as any structure except those intended for temporary purposes and to redefine "insurable loan" to include loans for a range of activities, such as acquiring land, developing land, constructing buildings, and meeting expenses related to infrastructure. The definition of "insurable loan" also specifies that the repayment of such loans must be secured by an approved security over certain interests in land. Additionally, the interpretation section clarifies that references to "dwelling-house" now also include "building other than a dwelling-house" and modifies the context in which these terms are used. The obligations and requirements imposed by the Housing Loans Insurance Amendment Act 1983 include ensuring that loans made for the specified purposes are adequately secured. The Act mandates that loans must be secured by an approved security over the borrower's interest in the land or other prescribed interests, depending on the use of the land. Furthermore, the Act requires that certain loans, such as those for altering, improving, or extending a dwelling-house or meeting infrastructure expenses, be made in accordance with terms and conditions approved by the relevant authority. The Act also imposes an obligation on lenders to ensure that the loans they provide fall within the expanded definition of "insurable loan" and are properly secured. Breaches of the obligations and requirements outlined in the Housing Loans Insurance Amendment Act 1983 may result in civil or criminal consequences. Although the Act does not specify maximum penalties for breaches, it is likely that non-compliance could lead to legal actions for damages, enforcement actions by regulatory bodies, or other civil remedies. Additionally, if the breach involves fraudulent activities or other criminal conduct, the parties involved may face criminal charges, which could result in fines or imprisonment, depending on the severity of the offence. The exact penalties would be determined by the relevant courts based on the specific circumstances of each case.

Legal classification tags

Area of Law
Insurance Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Definitions & Interpretation
Licensing & Registration

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.