Commonwealth Numbered Acts
[Index]
[Table]
[Search]
[Search this Act]
[Notes]
[Noteup]
[Previous]
[Download]
[Help]
HOUSING ASSISTANCE ACT 1978 No. 79 of 1978 - SCHEDULE
SCHEDULE
Section 4
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) the Commonwealth and the States of Australia have from
time to time entered into agreements for the purpose of
the provision by the States with financial assistance
from the Commonwealth of housing for persons who are in
need of governmental assistance if their housing
requirements are to be met;
(B) the Ministers of the respective governments who are
responsible for housing have agreed upon the provision of
rental housing assistance and home purchase assistance in
the States during the three financial years commencing on
the first day of July 1978;
(C) the Ministers have also established principles that are
to apply to the provision of housing assistance under
this Agreement, namely-
(a) housing assistance will-
(i) facilitate home ownership for those able to afford it but not
able to gain it through the private market;
(ii) provide adequate rental housing for those of the community who
are deemed to be in need of governmental assistance at a price
that is within their capacity to pay;
(iii) provide assistance for home ownership and assistance with
rental accommodation in the most efficient way and thus to
exclude from eligibility those not in need, to minimise
continued availability of assistance to those no longer in need
and to accord benefits which are designed so that assistance
being provided is related to the particular family's or
individual's current economic and social circumstances;
(b) benefits which are available are offset to the minimum extent
practicable by poor location of dwellings, an inadequate range of
choice of dwellings and stigmatisation of those who are to receive
benefits;
(c) there will be clear recognition of the separate but complementary
roles of-
(i) construction and acquisition of dwellings;
(ii) management of the rental operation; and
(iii) sales of dwellings;
(d) maximum social benefit will be sought from previous investment in
housing; and
(e) the States will be able to exercise maximum autonomy and flexibility
in the administrative arrangements necessary to achieve these
principles;
(D) it is proposed that in order to implement the agreement
of the Ministers 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;
(E) the Commonwealth and the States wish to vary in certain
respects the agreements which have been entered into as
aforesaid; and
(F) 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-OPERATION OF AGREEMENT
1. (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.
(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.
2. Acts and things provided for by this Agreement which have been done or
carried out by or with respect to a State in accordance with and in
anticipation of its coming into force in respect of that State shall be deemed
to have been done or carried out under this Agreement as if it were in force
at the relevant time or times in respect of that State.
PART II-INTERPRETATION
3. (1) Subject to sub-clause (2), 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.
(2) Where in an existing Housing Agreement included in the Schedule, including
any amendment of that Agreement made by this Agreement, the word 'State' or
the expression 'the States' means a State or the States in respect of which
that Agreement is in force, that word and that expression shall, for the
purposes of the operation of that Agreement, as amended by this Agreement,
mean respectively a State or the States in respect of which this Agreement has
come into force.
4. (1) In this Agreement-
'the Minister' means the Minister of State of the Commonwealth for the time
being responsible for the administration of this Agreement for the
Commonwealth; and
'the State Minister' means the Minister of State of a State for the time being
responsible for the administration of this Agreement for the relevant State.
(2) A reference in this Agreement to a Minister includes 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 or for the time being acting for the
Minister referred to.
5. In this Agreement, unless the contrary intention appears or the context
otherwise requires-
'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;
'financial year' means a period of twelve months commencing on the first day
of July;
'housing' means residential housing including dwellings and other forms of
residential accommodation;
'previous housing arrangements' means the provisions in relation to housing
that were made by the existing Housing Agreements and by the States Grants
(Housing) Act 1971 and the Housing Assistance Act 1973 of the Commonwealth
Parliament; and
'the existing Housing Agreements' means the Agreements set out in the Schedule
and where the singular is used means such one or other of those Agreements as
the context requires.
6. In this Agreement, unless the contrary intention appears-
(a) a reference to a Part or to a clause is to a Part or to a clause of
this Agreement, as the case may be;
(b) a reference to a sub-clause is, unless otherwise indicated, to the
relevant sub-clause of the clause in which the reference appears;
(c) the Schedule referred to is the Schedule to this Agreement;
(d) words importing the masculine gender also import the feminine and,
where appropriate, the neuter; and
(e) words in the singular number include the plural and vice versa.
PART III-OBJECTIVE OF AGREEMENT
7. The objective of this Agreement is the provision by the States with
financial assistance from the Commonwealth of housing assistance for rental
housing and for home purchase in accordance with, and in fulfilment of, the
principles set out in recital (C).
PART IV-FINANCIAL ASSISTANCE
8. (1) During the financial years of this Agreement the Commonwealth will
provide financial assistance to the States for housing purposes by way of
advances upon and subject to the terms of this Agreement in order to assist
the States in the achievement of the objective of this Agreement.
(2) The financial years of this Agreement shall be the three financial years
commencing on the first day of July in the years 1978, 1979 and 1980.
9. Of the total amount of the advances by the Commonwealth to the State under
this Agreement in respect of a financial year, portion (referred to as
advances for rental housing assistance) shall be for allotment by the State
for the provision of rental housing in accordance with Part V and the other
portion (referred to as advances for home purchase assistance) shall be for
payment into the Home Purchase Assistance Account established by the State for
application in accordance with Part VI.
10. (1) Each State shall, not later than the thirtieth day of November
preceding the beginning of a financial year of this Agreement, inform the
Minister of the amounts that the State wishes the Commonwealth to advance it
under this Agreement in respect of the financial year for rental housing
assistance and home purchase assistance programs of the State and at the same
time shall provide estimates of financial performance and planned programs for
that year.
(2) After consultation with the State Ministers of the States and after
considering State requirements and practices but without regard to any
operating surpluses on rental housing assistance operations under previous
housing arrangements and under this Agreement or on the operations of the Home
Builders' Accounts or the Home Purchase Assistance Account under those
arrangements or under this Agreement, the Minister shall determine the total
amount to be advanced to the State under this Agreement in respect of the
financial year.
(3) In consultation with the State Minister the Minister shall determine, and
may in like manner at any time vary, the allocation between rental housing
assistance and home purchase assistance of the total amount of the advances to
be made by the Commonwealth to a State under this Agreement in each financial
year of this Agreement but the amount of home purchase assistance to be made
to a State in respect of the financial year commencing on the 1st day of July
1980 shall not be less than 40 per centum of the total amount of the advances
to be made by the Commonwealth to the State under this Agreement in respect of
that financial year.
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 Minister for Finance of the Commonwealth and the
Treasurer of the State.
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 rental housing assistance-5 per centum per annum; and
(b) in respect of home purchase assistance-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.
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 Minister for Finance of the Commonwealth and the
Treasurer of each State, or in default of agreement, as determined by the
Minister for Finance of the Commonwealth, but nothing in this sub-clause shall
affect the other provisions of this Agreement.
PART V-RENTAL HOUSING ASSISTANCE
14. In this Part 'rental housing' means housing for rental which has been
provided under the previous housing arrangements or is provided under this
Agreement and 'rental dwelling' means a dwelling that is included in rental
housing.
15. Funds available to a State during a financial year for rental housing
assistance programs (in this Part referred to as 'rental housing assistance
funds') shall consist of-
(a) in respect of a financial year of this Agreement, advances for rental
housing assistance made under this Agreement during the financial
year;
(b) in respect of any financial year, any surplus during the financial
year of revenue after allowing for rental rebates over outgoings
incurred or provided for arising from-
(i) the rental housing operations of the State in respect of
dwellings provided under previous housing arrangements and
under this Agreement; and
(ii) any other rental operations of the State which arise out of
this Agreement and to which this Agreement applies; and
(c) subject to sub-clause 20 (3), net proceeds from the sale of rental
dwellings in accordance with the provisions of this Part.
16. (1) Rental housing assistance funds shall be used by the State for the
provision of rental housing in such manner subject to and in accordance with
the provisions of this Agreement as is appropriate for and conducive to the
achievement of the objective of this Agreement with respect to the principles
set out in recital (C) which relate to rental housing.
(2) Without prejudice to the generality of sub-clause (1) or conveying any
implication that funds are or are to be made available by the Commonwealth
for, or are to be applied by the State for, any particular purpose or purposes
or in any order of priority, the particular purposes for which rental housing
funds may be used by the State to give effect to sub-clause (1) include the
following purposes-
(a) to meet the costs of and associated with the acquisition, planning and
development of land primarily for residential development;
(b) to pay for the construction or acquisition of housing;
(c) to repay the principal of and pay interest on loans made to the State
for rental housing assistance;
(d) to provide funds to such voluntary, non-profit, charitable or other
housing management bodies or groups as are approved by the State
Minister;
(e) to enable housing to be let to such charitable bodies and other
organisations as are approved by the State Minister for the provision
of assistance to disadvantaged persons;
(f) to engage in urban renewal activities related to public housing;
(g) to allocate funds to local government bodies for the provision of
rental housing where the State Minister considers that it would be
more appropriate for such rental housing assistance to be carried out
by those bodies;
(h) to make payments for, or provide bridging finance for, the provision
of open space, landscaping, community facilities and for costs
associated with land development, including contributions to headworks
and reticulation of services;
(i) to undertake research and policy development in relation to
matters not funded by the Australian Housing Research Council;
(j) to undertake and participate in joint ventures, co-operative
enterprises or similar arrangements in order that public housing
developments may be integrated with private housing and to achieve a
desirable socio-economic mixture of housing;
(k) to lease housing from the private housing sector;
(l) to provide housing advisory services related to public housing; and
(m) any other purposes, including special housing needs or innovative
practices, agreed upon between the Minister and the State Minister.
17. The conditions of eligibility of persons for rental housing assistance
shall be determined by the State and shall ensure that assistance is directed
to those applicants most in need of such assistance.
18. (1) The rates at which rents are payable by tenants of rental housing
shall be determined by the State which when making any such determination
shall have regard to a policy of generally relating rents to rates of rental
on the open market.
(2) Rental rebates are to be granted to tenants who are not able to afford the
rent determined in accordance with sub-clause (1) and the Commonwealth and the
States will jointly seek ways of establishing a uniform approach to the
calculation of such rental rebates.
(3) The rates of rental shall, as far as practicable, be-
(i) reviewed annually; and
(ii) adjusted according to the movement of rates of rental on the open
market.
19. (1) Where in respect of any financial year the rental housing operations
of the State result in a surplus of revenue after allowing for rental rebates
over outgoings, that surplus shall be separately identified to the
Commonwealth and shall be included in rental housing assistance funds as
provided in paragraph (b) of clause 15 for application in accordance with
clause 16.
(2) Outgoings for the purposes of this clause shall consist of those normally
incurred or provided for in rental housing operations and shall include
repayments of principal and interest, maintenance, dwelling improvements,
municipal rates and administrative expenses.
20. (1) Subject to this clause, the policy of a State with respect to sales of
rental housing shall be as determined by the State but will be consistent with
the objective of facilitating home ownership included in the principles set
out in recital (C).
(2) In the determination and implementation of that policy the State shall
ensure that-
(a) sales of dwellings are at market value or replacement cost;
(b) sales of dwellings are on the basis of a cash transaction;
(c) home purchase assistance funds may be used to finance the purchase of
a dwelling; and
(d) proceeds from sales of dwellings are separately identified to the
Commonwealth.
(3) The net proceeds of sales of dwellings are generally to be applied towards
the construction or purchase of a replacement dwelling which will be included
in rental housing or which may be sold in accordance with this clause, but any
part of them may be applied to other housing purposes provided for in this
Agreement.
21. Each State shall in respect of each financial year furnish to the
Commonwealth by the 30th November next occurring after that year a statement
which shows the origin of rental housing assistance funds available during the
year and the manner in which they were applied and which is certified as to
its correctness by a person appointed by the State Minister for that purpose.
PART VI-HOME PURCHASE ASSISTANCE
22. (1) Each State will establish an account in the public accounts of the
State which will be known as 'the Home Purchase Assistance Account' (in this
Part called 'the Account') and moneys in which shall be available for home
purchase assistance in accordance with this Part.
(2) The State shall pay into the Account the advances that are made to it for
home purchase assistance.
(3) The Account shall be credited also with moneys received in the course of
the home purchase assistance operations provided for by this Part and shall be
debited with management costs and other outgoings in respect of those
operations.
(4) The excess of amounts that are received into the Account over payments
that are made from the Account in accordance with sub-clause (3) shall be
separately identified by the State to the Commonwealth.
23. (1) A State may but shall not be obliged to arrange for payment into the
Account of revolving funds which result from the operation of Home Builders'
Accounts or other home purchase assistance accounts that were established
under previous housing arrangements and may combine accounts established under
those arrangements and under this Agreement into one account, being the
Account.
(2) It is acknowledged and agreed by the parties that, when regard is had to
income and other circumstances, all persons who receive home purchase
assistance under this Agreement or from revolving funds under previous housing
arrangements shall have available to them the borrowing options provided in
this Part and that this situation will be achieved by the last financial year
of this Agreement.
24. (1) Moneys standing to the credit of the Account shall be made available
for the achievement of the objective of this Agreement with respect to the
principles set out in recital (C) which relate to home purchase and to that
end may be used for-
(a) making repayments of principal and payments of interest in respect of
advances by the Commonwealth to the State under this Agreement or,
where accounts under previous housing arrangements have been combined
into the Account, the repayment of principal and payment of interest
in respect of advances by the Commonwealth to the State which have
been allocated for home purchase assistance under those arrangements;
(b) meeting expenditure by the State in providing and administering loans
to approved lending authorities;
(c) making loans to
(i) terminating building societies or co-operative housing
societies;
(ii) a lending authority of the State approved by the State
Minister;
(iii) registered co-operative organizations approved by the State
Minister, not including permanent building societies;
(iv) such other bodies or organizations, including permanent
building societies, as are from time to time agreed upon
between the Minister and the State Minister,
for on-lending to home purchasers;
(d) providing a subsidy to eligible home purchasers or such lending
institutions as are from time to time agreed upon by the Minister and
the State Minister to reduce the interest cost of loans to the end
borrowers of the loans;
(e) financing the construction or purchase of dwellings for sale to
persons who are eligible for home purchase assistance under this
Agreement; and
(f) such other purposes as are from time to time agreed upon between the
Minister and the State Minister.
(2) In this clause-
(a) 'home purchaser' includes a purchaser of a dwelling under clause 20;
and
(b) references to societies are to societies registered as societies
referred to under the relevant legislation of the State.
25. (1) The rate of interest that is charged by the State in respect of so
much as is for the time being outstanding on a loan to an agency of the State
for the purposes of paragraphs (c), (e) or (f) of clause 24 shall-
(a) be not less than 5 per centum per annum until the end of the first
financial year that wholly occurs after the loan is made;
(b) be increased by 1/2 per centum per annum at the end of the first
financial year that wholly occurs after the loan is made and by 1/2
per centum per annum at the end of each subsequent financial year of
the loan until a rate equivalent to 1 per centum per annum below the
long term bond rate for a financial year is reached;
(c) thereafter be varied for any financial year of the loan according to
any variation in the long term bond rate for that financial year.
(2) For the purposes of this Clause the long term bond rate for a year shall
be the coupon rate on the longest term security of the last Commonwealth
public loan issued prior to the first day of May that last occurred prior to
that year.
26. (1) Subject to this clause, it shall be a matter for the State, as it sees
fit, to determine the conditions of eligibility and the amounts and conditions
that are to apply in respect of loans to persons who are to receive home
purchase assistance under this Agreement and under previous housing
arrangements.
(2) The conditions of eligibility shall be such that loans are made only to
those persons who are not able to obtain mortgage finance assistance in the
open market or from other sources.
(3) In determining the amount of a loan and of the repayments, regard shall be
had to family income, assets of the borrower and size and standard of
dwelling.
27. The State shall adopt policies and practices with regard to persons who
receive home purchase assistance which are best suited to the achievement of
the objective of this Agreement with respect of the principles set out in
recital (C) which relate to home purchase assistance and may, where
practicable, have regard to flexible lending practices, including those known
as-
(a) escalating interest loans with income geared starts;
(b) deferred interest repayment loans;
(c) income geared repayment loans;
(d) high start loans;
(e) second mortgage lending, and provision for variation in repayment in
the event of hardship.
28. Each State shall in respect of each financial year furnish to the
Commonwealth by the 30th November next occurring after that year a financial
statement in respect of operations of the Account which shows the origin of
funds received and the manner in which funds were applied and which is
certified as to its correctness by a person appointed by the State Minister
for that purpose.
PART VII-SUPERSESSION OF PREVIOUS HOUSING ARRANGEMENTS
29. (1) The provisions of this Agreement with respect to rental housing and
home purchase assistance shall, except as provided herein, supersede the
provisions of the existing Housing Agreements to the intent that this
Agreement will provide the arrangements between the Commonwealth and each
State in relation to the provision of rental housing, including the sale of
housing so provided, and to the provision of assistance for home purchasers
under the previous housing arrangements and this Agreement.
(2) Notwithstanding sub-clause (1), a State which is at the date of this
Agreement a party to the 1945 Agreement referred to in paragraph 1 of the
Schedule shall, subject to the State observing the provisions of this
Agreement on its part to be observed, continue to be entitled to a
contribution by the Commonwealth towards rental losses under sub-clauses (1)
and (2) of clause 15 of that Agreement as if the provisions of those
sub-clauses remained in force and, subject to sub-clause (2), the provisions
of the Second Schedule continue to apply by virtue of sub-clause (1) thereof.
PART VIII-GOVERNMENT AUTHORITIES AND AGENCIES
30. 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 the State
and its authorities of the obligations of the State under this Agreement.
31. A State shall determine an agency or agencies (including bodies or
organizations that are not authorities of the State) for the performance of
this Agreement on behalf of the State and acts and things that are done by or
with respect to the agency or agencies so determined shall, for the purposes
of this Agreement, be deemed to have been done by or with respect to the
State.
PART IX-SUPPLY OF INFORMATION
32. 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.
PART X-VARIATION OF AGREEMENT
33. (1) The provisions of Parts V and VI of this Agreement may be varied as
between the Commonwealth and a State by agreement in writing between the
Minister and the State Minister.
(2) A copy of an agreement or copies of the document which constitute an
agreement under sub-clause (1) shall be tabled in the Parliaments of the
Commonwealth and of the State within 15 sitting days of respective Parliaments
from the date upon which the agreement is made.
(3) An agreement under sub-clause (1) shall not affect the operation of this
Agreement as between the Commonwealth and the States other than that with
which the agreement has been made.
PART XI-REPRESENTATIVES AND COMMUNICATIONS
34. (1) The Commonwealth shall, subject to sub-clause (2), be represented for
the purposes of this Agreement by the Department of Environment, Housing and
Community Development, the address of which for notices and other
communications is-
Secretary,
Department of Environment, Housing and Community Development,
CANBERRA, A.C.T. 2600
(2) In the event that the administration of this Agreement for the
Commonwealth is allocated to a Minister other than the Minister for
Environment, Housing and Community Development, the Commonwealth shall be
represented by the Department administered by that other Minister and that
Minister shall notify the State Minister of the address of that Department.
35. The State shall, be represented for the purposes of this Agreement by the
Department administered by the State Minister and the State Minister shall
notify the Minister of the address of that Department and of any change at any
time of the Department or of the address.
36. (1) A notice or other communication under or in connexion with this
Agreement shall be duly given if it is in writing signed by or on behalf of,
or attributed to, the head of the Department by which it is given and
addressed to or delivered at the address of the Department to which it is
directed.
(2) For the purposes of this clause writing includes a teleprinter message the
address for such a message shall be the teleprinter address of the receiving
Department.
(3) A notice or other communication shall be given under this clause when it
is received in the appropriate form by the Department to which it is directed.
----------
SCHEDULE
Clause 5
Existing Housing Agreements 1. The 1945 Agreement
Agreement made 19 November 1945 between the Commonwealth and the States to
which Tasmania is not now a party-Act No. 44 of 1945. 2. The 1955 Agreement
Supplemental Agreement made 16 April 1955 between the Commonwealth and the
States other than Tasmania-Act No. 12 of 1955. 3. The 1956 Agreement
Agreement made 13 February 1957 between the Commonwealth and the States-Act
No. 43 of 1956. 4. The 1961 Agreement
Agreement made 4 October 1961 between the Commonwealth and the States-Act No.
31 of 1961. 5. The 1966 Agreement
Agreement made 21 December 1966 between the Commonwealth and the States-Act
No. 24 of 1966. 6. The 1973 Agreement
Agreement made 17 October 1973 between the Commonwealth and the States-Act No.
43 of 1973. 7. The 1974 Agreement
Supplemental Agreement made 20 December 1974 between the Commonwealth and the
States-Act No. 102 of 1974.
IN WITNESS WHEREOF etc.
------------------------------------------------------------------------------
--
AustLII: Copyright Policy
| Disclaimers
| Privacy Policy
| Feedback