(1) Mortgage duty is not chargeable in respect of a mortgage if the mortgage
secures an advance or advances made for the purpose of investment housing and
no other advances.
(2) If a mortgage secures an advance made for the purpose
of investment housing and another advance that is not made for that purpose,
mortgage duty is not chargeable in respect of the mortgage in relation to the
amount advanced for the purpose of investment housing.
(3) This section
applies in respect of a mortgage only if the borrower under the mortgage is a
natural person or, if there is more than one borrower, each of them is a
natural person.
(4) An advance is made for the purpose of investment housing
if it is to be applied wholly or predominantly for one or more of the
following purposes--
(d) repaying another advance, if the
advance to be repaid was made for the purposes of investment housing (within
the meaning of this section).
(5) For the purposes of this section,
"investment housing" is any private dwelling house that is used, or is
intended to be used or sold, for investment or business purposes (or both) by
the borrower or by any of the borrowers.
(6) The Chief Commissioner may, by
written instrument, determine the criteria that may be applied by lenders for
the purpose of establishing that the exemption provided for by this section
applies in respect of an advance.
(7) Without limiting subsection (6), the
Chief Commissioner may determine that an advance is taken to be made for the
purpose of investment housing if it meets criteria set out in any APRA
reporting standard relating to personal or commercial finance that is
specified by the Chief Commissioner to be applicable to the exemption under
this section.
(8) A determination made by the Chief Commissioner under this
section--
(a) may be varied or revoked by the making of a further
determination, and
(b) has effect according to its tenor.
(9) The exemption
provided for by this section takes effect on and from 1 July 2008.
