War Service Homes Act 1961

Legislation au C1961A00073 Not in force Act

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WAR SERVICE HOMES.

 

No. 73 of 1961.

An Act to amend the War Service Homes Act 1918–1956.

[Assented to 27th October, 1961.]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the War Service Homes Act 1961.

(2.) The War Service Homes Act 1918–1956 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the War Service Homes Act 1918–1961.


2. Section three of the Principal Act is repealed and the following section inserted in its stead:—

Parts.

“3. This Act is divided into Parts, as follows:—

Part I.—Preliminary (Sections 1–4b).

Part II.—Administration (Sections 5–14a).

Part III.—Acquisition of Land and Erection of Dwelling-houses (Sections 16–18a).

Part IV.—Sale of Homes on Rent-Purchase System (Sections 19–19b).

Part V.—Advances on Mortgage for Purposes of Homes (Sections 20–27).

Part VI.—Conditions of Contracts of Sale and Advances (Sections 28–38).

Part VII.—Funds (Sections 39–42).

Part VIII.—Miscellaneous (Sections 43–51).”.

Payment of purchase money and repayment of advance, &c.

3. Section twenty-nine of the Principal Act is amended by inserting after sub-section (3.) the following sub-sections:—

“(3a.) Where—

(a) a purchaser or borrower with respect to land or land and a dwelling-house requests the Director to make available out of deposits and interest accumulated to the credit of the purchaser or borrower under this section an amount specified in the request for the discharge of the whole or a part of a liability incurred or to be incurred by the purchaser or borrower for or in connexion with—

(i) rates, taxes or charges on or in respect of the land;

(ii) the erection of any building or other structure on the land;

(iii) the carrying out of improvements on, to or in relation to the land, the dwelling-house or any other building or structure on the land;

(iv) the repair, maintenance, alteration or extension of the dwelling-house or any other building or structure on the land; or

(v) the installation of fixtures upon or in the land, the dwelling-house or any other building or structure on the land;

(b) the Director is satisfied that the purchaser or borrower has incurred or will incur the liability; and


(c) the amount of the deposits and interest accumulated to the credit of the purchaser or borrower under this section less the amount of any instalments, or arrears of instalments, due to the Director by the purchaser or borrower is not less than the amount specified in the request,

the Director shall, subject to the next succeeding sub-section, comply with the request.

“(3b.) The Director may refuse to comply with the request if—

(a) the deposits and interest accumulated to the credit of the purchaser or borrower under this section amount to a sum that is not less than the capitalized value of the whole of the existing and future liability of the purchaser or borrower in connexion with a contract of sale or an advance; and

(b) the Director proposes to apply that sum under subsection (4.) of this section in discharge of the liability of the purchaser or borrower.

“(3c.) Where, by virtue of sub-section (3a.) of this section, the Director is required to make an amount available out of the deposits and interest accumulated to the credit of a purchaser or borrower under this section, the Director may, in his discretion, make the amount available in one of the following ways or partly in one of those ways and partly in the other:—

(a) by applying an amount in or towards the discharge of the liability to which the request relates;

(b) by paying an amount to the purchaser or borrower for the purpose of enabling the purchaser or borrower to apply the amount in or towards the discharge of that liability.”.

Purchaser or borrower may occupy dwelling-house as tenant of Director.

4.—(1.) Section thirty a of the Principal Act is amended—

(a) by omitting from sub-section (1.) the words “in that event” and inserting in their stead the words “whether or not he occupies or continues to occupy the dwelling-house and land”;

(b) by inserting after sub-section (2.) the following subsection:—

“(2a.) Where the Director—

(a) in the case of a purchaser—becomes empowered to cancel the contract of sale; or

(b) in the case of a borrower—becomes empowered to sell the estate and interest of the borrower in the land and dwelling-house,

the Director may determine the tenancy.”; and


(c) by omitting from sub-section (3.) the words “the last preceding sub-section” and inserting in their stead the words “either of the last two preceding subsections”.

(2.) Where, before the commencement of this Act, a purchaser or borrower became the tenant of the Director in relation to a dwelling-house and land by virtue of sub-section (1.) of section thirty a of the War Service Homes Act 1918–1919, or of that Act as amended, the tenancy shall not be deemed to have ceased or to. cease by reason only that the purchaser or borrower, before the commencement of this Act, ceased to occupy the dwelling-house and land or, after the commencement of this Act, ceases to occupy the dwelling-house and land.

Lands, &c not to be transferred, &c, while subject to mortgage, &c.

5. Section thirty-five of the Principal Act is amended by omitting sub-section (4.) and inserting in its stead the following sub-sections:—

“(4.) Where a transfer of land, of land and a dwelling-house or of an estate or interest therein, being a transfer that, by virtue of sub-section (1.) of this section, has no force or effect, is entered into or executed, the Director may enter upon and take possession of the land or land and dwelling-house and exercise, in respect of the land or land and dwelling-house, such powers as he could have exercised if he had entered upon and taken possession of the land or land and dwelling-house in pursuance of section thirty-six of this Act.

“(5.) For the purposes of this section, a transaction or instrument by which a person (in this section called ‘the transferor’)—

(a) transfers, conveys, assigns, grants, disposes of or surrenders, or grants an option to acquire, land or land and a dwelling-house that is subject to a contract of sale, mortgage or other security in accordance with this Act, or an estate or interest therein, or purports to transfer, convey, assign, grant, dispose of or surrender, or to grant an option to acquire, any such land or land and a dwelling-house or an estate or interest therein; or

(b) agrees or arranges to transfer, convey, assign, grant, dispose of or surrender, or to grant an option to acquire, any such land or land and a dwelling-house or an estate or interest therein,

to another person (in this section called ‘the transferee’) shall be deemed to be a transfer, made by the transferor to the transferee, of the land, of the land and dwelling-house or of the estate or interest, but a transaction or instrument shall not be deemed to be a transfer of land, of land and a dwelling-house or of an


estate or interest therein by reason only that, by the transaction or instrument, a person mortgages, lets or sub-lets, or agrees or arranges to mortgage, let or sub-let, the land, the land and dwelling-house or the estate or interest to another person.

“(6.) A reference in this section to an estate or interest in land or land and a dwelling-house shall be read as not including a reference to an estate or interest of a person, other than the purchaser or borrower, as mortgagee, lessee or sub-lessee.”.

Action on instalments being overdue, &c.

6. Section thirty-six of the Principal Act is amended by adding at the end thereof the following sub-section:—

“(4.) When the Director becomes empowered to sell the estate and interest of a borrower in land or land and a dwelling-house, the Director may, by notice in writing to the borrower, call up the whole of the moneys secured under the mortgage or other security held by the Director in respect of the land or the land and dwelling-house.”.

 

Overview

The War Service Homes Act 1961 was enacted to amend the War Service Homes Act 1918–1956, addressing issues related to the administration, acquisition, and sale of war service homes, as well as the conditions of contracts of sale and advances. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. The primary policy objective of the 1961 Act is to streamline the processes related to the management and financial aspects of war service homes, including the handling of deposits, interest, and the repayment of advances. This legislation also seeks to clarify the roles and powers of the Director in managing these aspects, ensuring that the provisions are up-to-date and aligned with the current needs of the beneficiaries.

Scope and Application

The War Service Homes Act 1961 applies to individuals and entities involved in the acquisition and sale of war service homes, as well as the administration and management of these properties. This Act amends the existing War Service Homes Act 1918–1956, enhancing its provisions to better serve the needs of war service home purchasers and borrowers. The Act is applicable across the Commonwealth of Australia, ensuring a consistent approach to the administration, acquisition, and sale of war service homes. It does not specify exclusions or exemptions, but it does allow for certain discretionary powers of the Director in relation to the management of deposits and interest. The Act may be extended or restricted through subordinate instruments, although specific details are not provided in the text. Overall, the Act aims to improve the conditions under which war service homes are sold and occupied, while also ensuring that the interests of both the purchasers and the Director are protected.

Key Provisions

The War Service Homes Act 1961, which amends the War Service Homes Act 1918–1956, introduces several key provisions related to the payment of purchase money, the repayment of advances, and the conditions under which a purchaser or borrower can occupy a dwelling-house as a tenant of the Director. Section 3 amends Section 29 of the Principal Act by inserting new sub-sections that allow the Director to make available funds from deposits and interest accumulated by a purchaser or borrower for the discharge of various liabilities. These liabilities include rates, taxes, charges, building and improvement costs, and repairs or alterations to the dwelling-house or land (Section 3(3a)). However, the Director may refuse to comply with a request if the accumulated funds are sufficient to cover the purchaser's or borrower's existing and future liabilities under a contract of sale or an advance (Section 3(3b)). The Director may also choose to either apply the funds directly to the liability or pay them to the purchaser or borrower for this purpose (Section 3(3c)). The Act further clarifies the circumstances under which a purchaser or borrower may occupy a dwelling-house as a tenant of the Director. Section 4 amends Section 30a of the Principal Act by specifying that the Director may determine the tenancy if they become empowered to cancel the contract of sale for a purchaser or to sell the estate and interest of a borrower in the land and dwelling-house (Section 4(2a)). It also ensures that a tenancy that existed before the commencement of this Act will not be deemed to have ceased simply because the occupant stopped residing in the dwelling-house (Section 4(2)). Additionally, Section 5 amends Section 35 of the Principal Act to clarify that any transfer of land or a dwelling-house while subject to a mortgage or other security under this Act is void (Section 5(4)). The Director is empowered to take possession of such land and exercise the relevant powers (Section 5(4)). The section also specifies that a transaction or instrument by which land subject to a contract of sale, mortgage, or other security is transferred is deemed to be a transfer, while a transaction or instrument merely involving a mortgage, lease, or sub-lease does not constitute a transfer (Section 5(5)). Finally, Section 6 adds a new sub-section to Section 36 of the Principal Act, allowing the Director to call up the whole of the moneys secured under the mortgage or other security when they become empowered to sell the estate and interest of a borrower in the land or land and dwelling-house (Section 6(4)). The obligations imposed by the War Service Homes Act 1961 on parties and entities governed by the Act include ensuring that any liabilities incurred for rates, taxes, building, improvements, or repairs are adequately covered by the accumulated deposits and interest. Purchasers or borrowers must also comply with the conditions of their contracts and the terms set forth in the Act, particularly regarding the occupation of the dwelling-house as a tenant of the Director. The Director is obligated to manage the funds and liabilities in accordance with the provisions of the Act, including the discretion to decide whether to directly apply funds to liabilities or pay them to the purchaser or borrower. Breaches of the obligations and requirements set out in the Act may result in various consequences. For instance, if a purchaser or borrower fails to meet their financial obligations, the Director may take action, such as selling the estate and interest in the land and dwelling-house or calling up the whole of the moneys secured under the mortgage or other security. There are no specific penalties or maximum penalties stated in the provided sections of the Act, but the consequences of non-compliance generally involve the Director exercising their powers to enforce the terms of the contracts and protect their interests. Civil or criminal penalties would likely be determined by other provisions of the Act or relevant laws if applicable.

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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.