Overview

The National Housing Finance and Investment Corporation Amendment Act 2019 was enacted by the Parliament of Australia to address the issue of assisting first home buyers to enter the housing market more swiftly. The Act assigns new functions to the National Housing Finance and Investment Corporation (NHFIC) to administer the First Home Loan Deposit Scheme, which provides guarantees to help eligible first home buyers. The policy objective is to ensure that first home buyers can more easily afford the deposit required to purchase their first home, thereby promoting homeownership and addressing housing affordability issues. The National Housing Finance and Investment Corporation (First Home Loan Deposit Scheme Commencement) Determination 2019 was made under the authority of the Minister for Housing and Assistant Treasurer to specify the commencement date for the NHFIC's ability to issue guarantees under the scheme. This Determination sets 1 January 2020 as the effective date, after which the NHFIC can make decisions to issue guarantees, thereby ensuring that the scheme can commence on a scheduled basis and provide timely support to first home buyers.

Scope and Application

The National Housing Finance and Investment Corporation Amendment Act 2019 establishes new functions for the NHFIC to administer the First Home Loan Deposit Scheme, aimed at assisting first home buyers to enter the housing market sooner by issuing guarantees. The Act applies to the NHFIC and those involved in home loan provision, specifically focusing on first home buyers. The geographic reach of the Act is national, as it applies across Australia. The Act does not specify any exclusions or exemptions, and its operation is dependent on the commencement determination made by the Minister. The National Housing Finance and Investment Corporation (First Home Loan Deposit Scheme Commencement) Determination 2019 sets 1 January 2020 as the commencement date for the NHFIC to issue guarantees under the Act, meaning no decisions can be made prior to this date. The Determination is a legislative instrument under the Legislation Act 2003, with a negligible compliance cost impact. There was no public consultation due to its technical nature, but consultations were held with the NHFIC and home loan providers during the scheme's development.

Key Provisions

The National Housing Finance and Investment Corporation Amendment Act 2019 (the Act) introduces new provisions enabling the National Housing Finance and Investment Corporation (NHFIC) to administer the First Home Loan Deposit Scheme. Under section 16(2) of Schedule 1, the Minister is empowered to determine a commencement date for the scheme by legislative instrument, while section 16(1) stipulates that the NHFIC cannot issue a guarantee to assist first home buyers before either this determined date or, if no date is set, the later of 1 January 2020 or three months after the Act's commencement. The National Housing Finance and Investment Corporation (First Home Loan Deposit Scheme Commencement) Determination 2019 (the Determination) establishes 1 January 2020 as the commencement date for the scheme. Consequently, the NHFIC can only make decisions to issue guarantees from this date onwards. The Act does not impose any conditions on the Minister before exercising the power to make this Determination. The Act imposes specific obligations on the NHFIC and potentially on home loan providers, requiring adherence to the commencement date set by the Determination for the issuance of guarantees. The NHFIC must ensure that no guarantees are issued before 1 January 2020, aligning with the legislative framework designed to support first home buyers. While the Act does not explicitly detail the obligations of home loan providers, they are expected to coordinate with the NHFIC in accordance with the scheme’s provisions to facilitate the timely issuance of guarantees to eligible first home buyers. The Determination does not explicitly outline offences, penalties, or consequences for non-compliance within its text. However, any breach of the scheme's requirements could potentially lead to legal actions under the broader legislative framework governing the NHFIC and the housing finance sector. For instance, if the NHFIC issues a guarantee before the permitted date, this could be viewed as non-compliance with the Act, potentially resulting in administrative or judicial consequences. The specific penalties or sanctions would be determined by the relevant courts or tribunals based on the nature and extent of the breach.