Commonwealth Numbered Acts

DEFENCE HOME OWNERSHIP ASSISTANCE SCHEME ACT 2008 (NO. 27, 2008) - SECT 44

Scope

             (1)  This section applies if:

                     (a)  the Secretary authorises the payment of subsidy to a subsidised borrower under section 27 in relation to a subsidised loan, on the basis of a subsidy certificate; and

                     (b)  as a result, subsidy has been paid to the subsidised borrower during an entitlement period.

Note:          If the payment of subsidy is authorised because the subsidised borrower is a surviving partner of a deceased partner, the subsidy certificate concerned may be a subsidy certificate given to the deceased partner or to the surviving partner.

Revocation of authorisation

             (2)  The Secretary may, by written notice to the subsidised borrower, revoke the authorisation of the payment of subsidy to the subsidised borrower in relation to the entitlement period if the Secretary is satisfied that:

                     (a)  the subsidy certificate ought not to have been given; or

                     (b)  the subsidy certificate was only given because of a false or misleading statement by the subsidised borrower (or anyone else); or

                     (c)  payment of subsidy at any time during the entitlement period was only made (or continued) because of a false or misleading statement by the subsidised borrower (or anyone else).

Note:          Part 5 provides for the administrative review of the Secretary's decision to revoke the authorisation.

             (3)  The Secretary may give a notice under subsection (2) during the entitlement period, or at any time after the end of the entitlement period.

Effect of revocation

             (4)  If an authorisation is revoked under this section , subsidy is taken not to have become payable to the subsidised borrower during the entitlement period.

Note:          The Commonwealth may recover, as overpayments, any subsidy paid to a subsidised borrower during the entitlement period if subsidy is taken not to have become payable to the borrower (see Division 6).

Notice to loan provider

             (5)  The Secretary must give a copy of a notice under subsection (2) to the loan provider who made the loan to the subsidised borrower.

If the subsidised borrower has died

             (6)  If the subsidised borrower has died, the Secretary may revoke the authorisation of the payment of subsidy to the subsidised borrower by giving a notice under subsection (2) to the borrower's legal personal representative.

If the subsidised borrower is a surviving partner

             (7)  In the application of this section to a surviving partner (of a deceased partner) who is a subsidised borrower because of section 60 or 61:

                     (a)  a reference in paragraph (2)(c) to the payment of subsidy includes a reference to the payment of subsidy to the deceased partner during the entitlement period; and

                     (b)  subsection (4) does not apply to the deceased partner's entitlement to subsidy.

Note 1:       Revocation of an authorisation is grounds for the Secretary to refuse to give a subsidy certificate on a future occasion, and to refuse authorisation for the payment of subsidy in relation to a future entitlement period (see sections 16 and 27).

Note 2:       If section 45 (variation of authorisation of payment of subsidy--when a person is not a member of the Reserves) applies, the authorisation of the payment of subsidy cannot be revoked under this section because of the operation of subsection 5(2) (which relates to when a member stops being a member of the Reserves) (see subsection 45(5)).