Commonwealth Numbered Acts

HOUSING AGREEMENT ACT 1973 No. 43 of 1973 - SCHEDULE

SCHEDULE
Section 3

AN AGREEMENT made the . . . . . . . . . . . . . . . . . . . . . . . . day of .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
One thousand nine hundred and seventy-. . . . . . Between THE COMMONWEALTH OF
AUSTRALIA (in this Agreement called 'the Commonwealth') of the first part, THE
STATE OF NEW SOUTH WALES of the second part, THE STATE OF VICTORIA of the
third part, THE STATE OF QUEENSLAND of the fourth part, THE STATE OF SOUTH
AUSTRALIA of the fifth part, THE STATE OF WESTERN AUSTRALIA of the sixth part
and THE STATE OF TASMANIA of the seventh part.

WHEREAS-

   (a)  at conferences between Ministers for Housing of the Commonwealth and
        of the States proposals have been discussed in relation to the
        provision in the States of housing for the welfare of persons who are
        in need of governmental assistance if their housing requirements are
        to be met;

   (b)  the Commonwealth has proposed to the States that to further the
        provision of housing to meet those requirements the Commonwealth will
        grant to the States financial assistance under section 96 of the
        Commonwealth of Australia Constitution and that the terms and
        conditions on which the grant of financial assistance should be made
        are those set out in this Agreement; and

   (c)  the Parliament of the Commonwealth has authorised the execution by and
        on behalf of the Commonwealth of this Agreement and the making of
        advances to the States in accordance with its provisions: NOW IT IS
        HEREBY AGREED as follows:

PART I-PRELIMINARY Commencement of Agreement.
1. This Agreement shall come into force in respect of the Commonwealth and of
a State when it has been signed on behalf of the Commonwealth and has been
signed on behalf of the State with the authority of the Parliament of the
State or, having been signed on behalf of the State without that authority, is
approved by the Parliament of the State. Operation in respect of States.
2. Notwithstanding that in this Agreement all the States of New South Wales,
Victoria, Queensland, South Australia, Western Australia and Tasmania are
named as parties, this Agreement shall operate as an agreement between the
Commonwealth and the State or States in respect of which it comes into force
as fully and effectually as if the State or States in respect of which it
comes into force were the only State or States named as parties. Performance
of Agreement.
3. The Commonwealth shall provide for or secure the performance by it and its
authorities of the obligations of the Commonwealth under this Agreement and
each of the States shall provide for or secure the performance by that State
and its authorities of the obligations of that State under this Agreement.

PART II-INTERPRETATION Reference to States.
4. In this Agreement each State named as a party in respect of which the
Agreement comes into force is referred to as a 'State' and, except where the
context otherwise indicates, the expression 'the States' means all of those
States. References to Ministers.
5. Where in this Agreement a Minister of State of the Commonwealth or of a
State is referred to, the reference shall include a Minister or other member
of the Federal Executive Council or Minister of the relevant State, as the
case may require, acting on behalf of the Minister referred to. Definitions.
6. In this Agreement, unless the contrary intention appears or the context
otherwise requires-

'aged person' means a person who has reached the age that is determined by the
Commonwealth as pensionable for aged persons;

'dwelling' means a dwelling-house or flat and includes such fences,
outbuildings and other improvements and such connexions for sewerage,
drainage, water, electricity, gas and other services as are provided or are
reasonably required to be provided for the dwelling-house or flat;

'family dwelling' means a dwelling constructed or purchased by a State Housing
Authority as being suitable for allocation to a family unit consisting of a
couple, with or without children, or of a parent or guardian with one or more
children;

'financial year' means a period of twelve months commencing on the first day
of July;

'Housing Authority' in relation to a State, means-

   (a)  in the case of New South Wales-The Housing Commission of New South
        Wales;

   (b)  in the case of Victoria-the Housing Commission constituted under the
        Housing Act 1958 of that State as amended and in force for the time
        being;

   (c)  in the case of Queensland-The Queensland Housing Commission;

   (d)  in the case of South Australia-the South Australian Housing Trust;

   (e)  in the case of Western Australia-The State Housing Commission
        constituted under the State Housing Act 1946 of that State as amended
        and in force for the time being; and

   (f)  in the case of Tasmania-the Director of Housing holding office under
        the Homes Act 1935 of that State as amended and in force for the time
        being;

'the Home Builders' Account' means the account of a State referred to in
clause 23 and, if that account is incorporated into another account or
consolidated with other accounts as mentioned in sub-clause (2) of that
clause, means the account resulting from the incorporation or consolidation;

'the Minister' means the Minister for Housing of the Commonwealth or other
Minister of State of the Commonwealth for the time being responsible for the
administration of this Agreement for the Commonwealth;

'the State Minister' means the Minister of State of the State for the time
being responsible for the administration of this Agreement for the relevant
State. Construction of Agreement.
7. In this Agreement, unless the contrary intention appears-

   (a)  a reference to a Part or to a clause is to a Part or a clause of this
        Agreement, as the case may be;

   (b)  words importing the masculine gender also import the feminine and,
        where appropriate, the neuter; and

   (c)  words in the singular number include the plural and vice versa.

PART III-FINANCIAL ASSISTANCE Financial Assistance.
8. (1) During the financial years of this Agreement the Commonwealth will
provide financial assistance to the States for welfare housing purposes by way
of advances upon and subject to the terms of this Agreement.

(2) The financial years of this Agreement shall be the five financial years
commencing on the first day of July in the years 1973, 1974, 1975, 1976 and
1977. Allocation of Assistance.
9. (1) Of the total amount of the advances by the Commonwealth to the State
under this Agreement in respect of a financial year, portion (in this
Agreement referred to as Housing Authority advances) shall be for allotment by
the State to the Housing Authority of the State for the provision of housing
in accordance with Part IV and the other portion (in this Agreement referred
to as Home Builders' Account advances) shall be for payment into the Home
Builders' Account of the State for application in accordance with Part V.

(2) Subject to sub-clause (3) of this clause, the amount of the Home Builders'
Account advances to be made to a State in respect of a financial year shall be
not less than 20 per centum nor more than 30 per centum of the total amount of
the advances to be made by the Commonwealth to the State under this Agreement
in respect of the financial year.

(3) Where a State has in each of the two financial years immediately preceding
the first day of July 1973 allocated to its Home Builders' Account from the
amount set aside for housing within the meaning of sub-section (2) of section
3 of the States Grants (Housing) Act 1971 in excess of 30 per centum of that
amount, the State may, if at the request of the State Minister the Minister so
approves, allocate as Home Builders' Account advances in respect of a
financial year of this Agreement more than 30 per centum of the total amount
of the advances under this Agreement in respect of that financial year. Amount
of Advances.
10. (1) Each State shall, not later than the fifteenth day of May preceding
the beginning of a financial year of this Agreement, inform the Minister of
the amounts that the State wishes the Commonwealth to advance to it under this
Agreement in respect of the financial year for-

   (a)  the provision of welfare housing by the Housing Authority of the
        State; and

   (b)  payment to the Home Builders' Account of the State.

(2) After consultation with the State Minister on the requirements of the
State for welfare housing, during which regard shall be taken, among other
relevant matters, of the numbers seeking assistance, the cost of land and of
dwelling construction and the capacity of the State to use advances, the
Minister shall determine the amounts to be advanced to the State in respect of
the financial year as Housing Authority advances and as Home Builders' Account
advances in accordance with clause 9. Instalments of Advances.
11. The advances to be made by the Commonwealth to a State under this
Agreement in respect of a financial year shall be made available by the
Commonwealth during that financial year by equal monthly instalments unless
otherwise agreed between the Treasurer of the Commonwealth and the Treasurer
of the State. Interest.
12. (1) Each advance made by the Commonwealth to a State under this Agreement
or so much of each advance as for the time being remains unrepaid by the State
shall until repayment as provided in clause 13 bear interest computed from the
date upon which the advance is made.

(2) The rate of interest shall be-

   (a)  in respect of Housing Authority advances-4 per centum per annum; and

   (b)  in respect of Home Builders' Account advances-41/2 per centum per
        annum.

(3) A State will on the thirty-first day of December and the thirtieth day of
June of a financial year during which advances are made to the State by the
Commonwealth under this Agreement pay to the Commonwealth the interest that
has accrued on those advances up to the date of the payment of the interest.
Repayment of Advances.
13. (1) Each State will repay to the Commonwealth the amount of each advance
made to the State under this Agreement, and will pay the interest thereon as
provided in clause 12 other than that payable under sub-clause (3) of that
clause, by equal annual instalments of principal and interest so that the
amount of the advance, together with the interest, will be repaid in 53 years
from the beginning of the financial year next succeeding the financial year in
respect of which the advance was made, the first such instalment being payable
on or before the end of the financial year next succeeding the financial year
in respect of which the advance was made.

(2) Accounting procedures in respect of the repayment of advances will be as
agreed upon between the Treasurer of the Commonwealth and the Treasurer of
each State or, in default of agreement, as determined by the Treasurer of the
Commonwealth, but nothing in this sub-clause shall affect the other provisions
of this Agreement.

PART IV-HOUSING AUTHORITY ADVANCES Use of Advances.
14. Housing Authority advances shall be used by the State for the provision
through its Housing Authority of welfare housing in accordance with this
Agreement and, without prejudice to the generality of the foregoing, may be
used by the Housing Authority for the following purposes-

   (a)  to meet the costs of acquisition and development of land primarily for
        residential purposes;

   (b)  to meet the cost of construction of dwellings;

   (c)  to meet the cost of purchase and upgrading and renovation of
        dwellings, and of substantial improvements to its existing dwellings
        but not so as to include the cost of maintenance of any dwellings; and

   (d)  subject to the approval of the Minister, to provide bridging finance
        for community amenities that are not the responsibility of the Housing
        Authority. Allocation of Dwellings.
15. (1) Dwellings for the provision of which Housing Authority advances have
been used and which become available for allocation during the period of five
years commencing on the first day of January 1974 shall be allocated by the
Housing Authority of the State for rental or for purchase by applicants for
housing assistance in accordance with this clause and the other provisions of
this Part.

(2) The dwellings shall be allocated so that-

   (a)  not less than 85 per centum of the family dwellings that are allocated
        for the first time;

   (b)  all of the dwellings built for couples, without dependants, of which
        the main breadwinner is an aged person or an invalid; and

   (c)  all of the dwellings built for single aged persons and for invalids,
        are allocated to families and other persons who respectively satisfy
        the needs tests set out in clause 16.

(3) Subject to the granting of priorities in cases of urgent need, dwellings
shall be allocated to persons in order of lodgement or of acceptance by the
Housing Authority of applications for housing assistance.

(4) A Housing Authority shall not be required by the provisions of this clause
to allocate a dwelling to a family or other person where the circumstances are
such that, in the opinion of the Housing Authority, the family or other person
does not require housing assistance of the nature that is provided for by this
Part. Needs Tests.
16. (1) The needs tests referred to in sub-clause (2) of clause 15 for the
purpose of the allocation of dwellings are-

   (a)  for a family, which shall consist of not less than a couple, with or
        without children, or of a parent or guardian with one or more
        children-that the average gross weekly income of the main breadwinner
        (exclusive of any overtime and child endowment payments) during the
        six months immediately prior to the allocation of the dwelling does
        not exceed-

        (i)    where the family does not include more than two children-85 per
               centum of average weekly earnings;

        (ii)   where the family includes more than two children-85 per centum
               of average weekly earnings plus two dollars for each child
               beyond the second;

   (b)  for a couple, without dependants, of which the main breadwinner is an
        aged person or an invalid-that the gross weekly income of the main
        breadwinner (exclusive of any overtime) does not at the time of
        allocation of the dwelling exceed 60 per centum of average weekly
        earnings;

   (c)  for a single aged person or an invalid-that the gross weekly income of
        that person at the time of allocation of the dwelling does not exceed
        40 per centum of average weekly earnings.

(2) For the purposes of sub-clause (1) of this clause 'average weekly
earnings' means the average weekly earnings per employed male unit in the
State or in Australia (as to which the State may elect) during the December
quarter in respect of which statistics were last published by the Commonwealth
Statistician prior to the date of allocation of the relevant dwelling.
Variation of Needs Test.
17. (1) At the initiative of the Minister and with the concurrence of the
State Minister or Ministers concerned or at the request of the State Minister
or Ministers concerned, the Minister may at any time vary all or any of the
needs tests provided for by clause 16 either generally in respect of a State
or States or specifically in relation to specified categories of persons or to
localities or locations.

(2) A variation under sub-clause (1) of this clause shall be in writing under
the hand of the Minister and as soon as practicable after a variation is made
a copy shall be forwarded to the Minister for Housing of each State. Total
Allocation of Family Dwellings.
18. Each State will ensure that the number of family dwellings allocated by
the Housing Authority of the State during each of the five calendar years
commencing on the first day of January 1974 to persons eligible as families
under this Agreement shall be at least the equivalent of the sum of-

   (a)  the total number of the family dwellings for the provision of which
        Housing Authority advances have been used and which become available
        during the relevant calendar year for allocation for the first time;
        and

   (b)  25 per centum of the number of the family dwellings for the provision
        of which advances by the Commonwealth under this Agreement and under
        previous Commonwealth-State Housing Agreements have been used and
        which become available during the year for re-allocation by the
        Housing Authority by way of rental vacancies and of reversion or
        revesting of dwellings that had been sold. Limitations and Restraints
        on Sales of Family Dwellings.
19. (1) Subject to sub-clause (2) of this clause, the Housing Authority of a
State shall not sell more than 30 per centum of the family dwellings for the
provision of which Housing Authority advances have been used and which are
completed or purchased during the period of five years commencing on the first
day of January 1974.

(2) In the case of the State of Tasmania the percentage of family dwellings
referred to in sub-clause (1) of this clause that may be sold shall not
exceed-

   (a)  during the year commencing on the first day of January 1974-50 per
        centum; and

   (b)  during the year commencing on the first day of January 1975-40 per
        centum.

(3) A dwelling that may be sold under sub-clause (1) or (2) of this clause
shall be sold only to a purchaser who represents a family the income of whose
main breadwinner at the time of sale does not exceed the relevant income limit
referred to in paragraph (a) of sub-clause (1) of clause 16 (as at any time
varied in accordance with clause 17) except that a dwelling may be sold to the
Director of Defence Service Homes to enable such a purchaser to purchase the
dwelling from the Director in order to obtain assistance under the Defence
Service Homes Act 1918-1973 as amended from time to time.

(4) Except with the approval of the Minister, sales of family dwellings in
conformity with this clause shall be made on terms under contracts of sale.

(5) The State shall ensure that a purchaser of a family dwelling will not be
entitled to dispose of the dwelling (except by release or resale to the
Housing Authority of his interest in the dwelling) during the period of not
less than five years after the date of sale and that after the expiration of
that period a purchaser who proposes to sell a family dwelling may be required
by the Housing Authority to offer to the Housing Authority the release or
resale of his interest in the dwelling on the basis of the fair market value
of the dwelling and the land on which it is built at the time of the offer.

(6) Nothing in this clause shall preclude the sale or other disposal by the
Housing Authority of the State, subject to the approval of the Minister, of
land on which a dwelling is erected where the land is required for public
purposes not of a residential character or in other circumstances which the
State establishes to the satisfaction of the Minister justify the sale or
disposal. Sale Price and Interest.
20. (1) Dwellings built with Housing Authority advances and completed after
the thirty-first day of December 1973 shall not be sold for a price that is
less than one half of the sum of the cost to the Housing Authority of the
dwelling and the land on which it is built and the fair market value of the
dwelling and the land on which it is built at the date of sale.

(2) The interest charge, which shall include an element for the costs of
administration by the Housing Authority of the contract of sale, to purchasers
of dwellings shall not be less than 5 per centum per annum nor more than 5 3/4
per centum per annum. Review of Rentals.
21. A State shall arrange for the financial position in regard to the rental
activities of its Housing Authority to be reviewed at least once in each
financial year and shall ensure that rents are adjusted whenever an increase
would appear to be justified. Distribution of Dwellings.
22. To the maximum extent reasonably practicable-

   (a)  dwellings built with Housing Authority advances shall be intermingled
        with dwellings privately constructed; and

   (b)  a State Housing Authority will acquire some blocks in areas developed
        or to be developed privately and will construct and let dwellings on
        those blocks.

PART V-HOME BUILDERS' ACCOUNT ADVANCES Home Builders' Account.
23. (1) Each State shall pay the Home Builders' Account advances made to the
State to an account in the public accounts of the State to be known for the
purposes of this Agreement as 'the Home Builders' Account'.

(2) A State may arrange for the Home Builders' Account to be incorporated into
the account established and operated under that name for the purposes of the
1956-1966 Housing Agreement or into the account opened and maintained in
accordance with section 7 of the States Grants (Housing) Act 1971 or for all
three of those accounts to be consolidated but any such incorporation or
consolidation shall not affect the operation of this Part with respect to
loans from Home Builders' Account advances under this Agreement.

(3) The Home Builders' Account shall be credited also with the moneys received
by the State from building societies and approved lending authorities in
repayment of principal and interest in respect of loans made by the State to
those societies and authorities under this Agreement and shall be debited with
the repayments of principal and the payments of interest payable by the State
to the Commonwealth under clause 13 in respect of Home Builders' Account
advances to the State under this Agreement and with any expenses incurred by
the State in providing finance for prospective home owners in accordance with
this Agreement.

(4) The moneys standing to the credit of the Home Builders' Account (after
allowing for amounts with which the Account is to be debited under the last
preceding sub-clause) shall be used by the State for the purpose of the
provision of finance for prospective home owners in the State by way of loans
to terminating building or co-operative housing societies (in this Part
referred to individually as a 'society') or to a lending authority of the
State approved by the Minister so that the societies or the authority may make
loans (in this Part referred to individually as 'a loan to a home owner') to
assist the borrowers to build or purchase homes for themselves and their
families. Eligibility of Borrowers.
24. (1) To be eligible to obtain a loan to a home owner the borrower will be
required to represent a family which consists or will consist of not less than
a couple, with or without children, or of a parent or guardian with one or
more children, of which the average gross weekly income of the main
breadwinner (inclusive of overtime and exclusive of child endowment payments)
during the six months immediately prior to application for the loan does not
exceed-

   (a)  where the family does not include more than two children-95 per centum
        of average weekly earnings;

   (b)  where the family includes more than two children-95 per centum of
        average weekly earnings plus two dollars for each child beyond the
        second.

(2) For the purposes of sub-clause (1) of this clause 'average weekly
earnings' has the meaning attributed to that expression in sub-clause (2) of
clause 16.

(3) At the initiative of the Minister and with the concurrence of the State
Minister or Ministers concerned or at the request of the State Minister or
Ministers concerned, the Minister may at any time vary the needs test provided
for by sub-clause (1) of this clause either generally in respect of a State or
States or specifically in relation to specified categories of persons or to
localities or locations.

(4) A variation under sub-clause (3) of this clause shall be in writing under
the hand of the Minister and as soon as practicable after a variation is made
a copy shall be forwarded to the Minister of Housing of each State.

(5) Where a society or lending authority has entered into an obligation before
the first day of July 1973 to make a loan to a borrower of moneys to be
provided from any of the accounts mentioned in sub-clause (2) of clause 23 and
the whole or a part of that loan was not made by the thirtieth day of June
1973, the loan or the balance of the loan, as the case may be, may be made
from moneys standing to the credit of the Home Builders' Account
notwithstanding that the average gross weekly income of the main breadwinner
in the family exceeds the relevant limitation in sub-clause (1) of this
clause. Minimum Equity.
25. A loan to a home owner shall not be made except on the condition that the
borrower shall be bound to provide an equity of not less than 3 per centum of
the valuation by the society or lending authority of the property in respect
of which the loan is made. Charges for Loans
26. The amount that is charged by the society or lending authority in respect
of a loan to a home owner by way of interest and management fee shall not
exceed the equivalent, calculated with annual rests, of 5 3/4 per centum per
annum of the amount of the loan that for the time being remains to be repaid.
Homes for Purchase
27. A loan to a home owner may be made for the purpose of the purchase of a
new or previously occupied dwelling and may be made in respect of a dwelling
to be purchased from a State Housing Authority where the dwelling has not been
built with Housing Authority advances under this Agreement.

PART VI-MISCELLANEOUS Supply of Information.
28. A State Minister will, upon request by the Minister, supply to the
Minister such information relevant to the operation of this Agreement in
respect of the State as is reasonably so requested. Title of Agreement.
29. This Agreement shall be known and may be referred to as 'the 1973 Housing
Agreement'.

IN WITNESS WHEREOF, &c.
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