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Housing Assistance Act 1989

Act No. 7 of 1990 as amended, taking into account amendments up to Act No. 202 of 1992
Registered 26 Nov 2009
Start Date 21 Dec 1992
End Date 14 Mar 1994
Date of repeal 17 Oct 2014
Repealed by Omnibus Repeal Day (Autumn 2014) Act 2014

HOUSING ASSISTANCE ACT 1989
- Updated as at 2 February 1994 (HISTACT CHAP 1388 #DATE 02:02:1994)

*1* The Housing Assistance Act 1989 as shown in this reprint comprises Act No. 7, 1990 amended as indicated in the Tables below.
Table of Acts
Act Date Date of Application
Number and of Assent Commencement saving or
Year transitional
provisions
Housing Assistance Act 1989
7, 1990 17 Jan 1990 S. 21: 1 July 1989
Remainder: Royal Assent
Housing Assistance Amendment Act 1992
202, 1992 21 Dec 1992 21 Dec 1992 -
Table of Amendments
ad=added or inserted am=amended rep=repealed rs=repealed and substituted
Provision affected How affected
S. 3 am. No. 202, 1992
S. 7 am. No. 202, 1992
S. 7A ad. No. 202, 1992
S. 13 am. No. 202, 1992
S. 15 am. No. 202, 1992

HOUSING ASSISTANCE ACT 1989 - TABLE OF PROVISIONS
TABLE OF PROVISIONS

TABLE

Section
1. Short title
2. Commencement
3. Interpretation
4. Agreements between Commonwealth and States
5. Grants for housing
6. Payments to be made out of money appropriated
7. Principle appropriation
7A. Commonwealth funds to be carried forward
8. Appropriation for housing assistance for young people
9. Appropriation for mortgage relief
10. Appropriation for the Australian Capital Territory
11. Allocation among the States of specific grants
12. Allocation among the States of untied grants in the first
grant year
13. Allocation among the States of untied grants after first grant
year
14. Payments for research, development and evaluation
15. Grants to be matched by State
16. Reallocation or retention of specific grants
17. Advances
18. Payments under the 1984 Act
19. Determinations to be in writing
20. Annual report by Minister
21. Amendment of the 1984 Act
Schedule 1
FORM OF HOUSING AGREEMENT
Schedule 2
ALLOCATION AMONG STATES OF AMOUNTS APPROPRIATED FOR
UNTIED GRANTS IN RESPECT OF FIRST GRANT YEAR
Schedule 3
ALLOCATION AMONG STATES OF AMOUNTS APPROPRIATED FOR
UNTIED GRANTS IN RESPECT OF SECOND AND THIRD YEARS

HOUSING ASSISTANCE ACT 1989 - LONG TITLE

SECT

An Act to provide financial assistance to the States, the
Australian Capital Territory and the Northern Territory in
relation to housing, and for related purposes

HOUSING ASSISTANCE ACT 1989 - SECT 1
Short title

SECT

1. This Act may be cited as the Housing Agreement Act 1989.*1* SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

HOUSING ASSISTANCE ACT 1989 - SECT 2
Commencement

SECT

2.*1* (1) This Act, other than section 21, commences on the day on which it receives the Royal Assent.


(2) Section 21 shall be taken to have commenced on 1 July 1989. SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

HOUSING ASSISTANCE ACT 1989 - SECT 3
Interpretation

SECT

3. In this Act:
"1984 Act" means the Housing Assistance Act 1984;
"advance" means an advance under section 17;
"grant" means a payment authorised under section 5;
"grant year" means the financial year commencing on 1 July 1989 or any later financial year commencing before 1 July 1999;
"housing agreement" means an agreement made under subsection 4 (1), being, where the agreement has been varied under subsection 4 (2), the agreement as so varied;
"priority provision", in relation to a housing agreement, means a provision of the agreement that is substantially in accordance with clause 36 of the form in Schedule 1;
"specific assistance" means specific housing assistance referred to in a housing agreement;
"specific grant" means a grant for specific assistance;
"State" includes the Australian Capital Territory and the Northern Territory;
"State Minister", in relation to a State with which the Commonwealth has made a housing agreement, has the same meaning as in that agreement;
"untied grant" means a grant other than a specific grant.

HOUSING ASSISTANCE ACT 1989 - SECT 4
Agreements between Commonwealth and States

SECT

4. (1) The Commonwealth may make an agreement with a State or States substantially in accordance with the form in Schedule 1.


(2) The Commonwealth may make a further agreement under and varying a housing agreement.


(3) The Minister is to cause a copy of a further agreement to be laid before each House of the Parliament within 15 sitting days of that House after the further agreement is made.


(4) The Commonwealth is not to make an agreement with a State under subsection (1) in June 1990.

HOUSING ASSISTANCE ACT 1989 - SECT 5
Grants for housing

SECT

5. (1) Subject to sections 6, 11, 12 and 13, the Minister may, in any grant year in which a housing agreement with a State is in force, authorise the payment to the State, by way of financial assistance, of such amounts as the Minister determines to be appropriate:
(a) for expenditure by the State in respect of the year for the purpose of specific housing assistance referred to in the agreement; or
(b) for expenditure by the State in respect of the year for any other purpose related to housing and in respect of which an amount paid to the State under the agreement may be expended.


(2) Payments are to be made on the terms and conditions specified in the agreement.

HOUSING ASSISTANCE ACT 1989 - SECT 6
Payments to be made out of money appropriated

SECT

6. (1) Payments under this Act are to be made out of money appropriated, whether by this Act or another Act, for the purpose of making them.


(2) An authorisation of a grant is subject to the appropriation of sufficient money to make the grant.

HOUSING ASSISTANCE ACT 1989 - SECT 7
Principal appropriation

SECT

7. (1) Subject to subsection (2), the Consolidated Revenue Fund is appropriated in the amount of $1,010,504,000 for the purpose of making payments under this Act during the first grant year, other than:
(a) grants, or advances on account of grants, for which an appropriation is made under section 8 or 9; or
(b) grants, or advances on account of grants, to the Australian Capital Territory.


(2) The amount referred to in subsection (1) is reduced by any amount appropriated by the 1984 Act, and paid out, after 30 June 1989 and before the commencement of this section.


(3) During each of the second and third grant years, the Consolidated Revenue Fund is appropriated in the amount of $1,010,504,000 for the purpose of making payments under this Act during the year, other than grants, or advances on account of grants, to the Australian Capital Territory.


(3A) For the purpose of making payments under this Act, the Consolidated Revenue Fund is appropriated in the following amounts:
(a) $1,059,200,000 in respect of the fourth grant year;
(b) $1,080,890,000 in respect of the fifth grant year;
(c) $1,010,641,000 in respect of the sixth grant year;
(d) $1,017,863,000 in respect of the seventh grant year.


(4) Subsection 12 (6), 13 (6), 15 (3) or 16 (1) or (3) may operate so that grants are made to the Australian Capital Territory out of money appropriated by this section or by another Act for the purpose of making grants to other States.

HOUSING ASSISTANCE ACT 1989 - SECT 7A
Commonwealth funds to be carried forward

SECT

7A. (1) If the amount of a grant in respect of the fourth, fifth, sixth or seventh grant year has not been fully paid to a State in that grant year, the Minister may, after consulting with the State Minister, determine that the amount remaining unpaid, or part of it, is to be carried over for payment to the State in the next grant year.


(2) If a determination is made under subsection (1) in respect of the fourth, fifth or sixth grant year, section 7 has effect as if the amount specified in paragraph (3A) (b), (c) or (d), as the case requires, were increased by the amount to be carried over.

HOUSING ASSISTANCE ACT 1989 - SECT 8
Appropriation for housing assistance for young people

SECT

8. The Consolidated Revenue Fund is appropriated in the amount of $9,834,000 for the purpose of making to the States, other than the Australian Capital Territory, during the first grant year, specific grants for people under 26 years of age and advances on account of such grants.

HOUSING ASSISTANCE ACT 1989 - SECT 9
Appropriation for mortgage relief

SECT

9. The Consolidated Revenue Fund is appropriated in the amount of $14,752,000 for the purpose of making to the States, other than the Australian Capital Territory, during the first grant year, specific grants for mortgage relief and advances on account of such grants.

HOUSING ASSISTANCE ACT 1989 - SECT 10
Appropriation for the Australian Capital Territory

SECT

10. (1) The money appropriated by the Appropriation Act (No. 2) 1989-90 specified in item 2 of subdivision 4 of Division 831 of Schedule 4 to that Act is to be taken to be appropriated for the purpose of grants to the Australian Capital Territory and of advances on account of such grants.


(2) During each of the second, third and fourth grant years, the Consolidated Revenue Fund is appropriated in the amount of $17,772,000 for the purpose of making grants, and advances on account of grants, to the Australian Capital Territory.


(3) Subsection 15 (3) or 16 (1) or (3) may operate so that grants are made to any State out of money referred to in subsection (1), money appropriated by subsection (2) or money appropriated by another Act for the purpose of making grants to the Australian Capital Territory.

HOUSING ASSISTANCE ACT 1989 - SECT 11
Allocation among the States of specific grants

SECT

11. The Minister, in authorising specific grants to be made in a grant year, is to ensure that the amounts of those grants are allocated among the States in accordance with their needs as determined by the Minister.

HOUSING ASSISTANCE ACT 1989 - SECT 12
Allocation among the States of untied grants in first grant year

SECT

12. (1) For the purposes of this section, the Australian Capital Territory is not to be taken to be a State.


(2) Subject to sections 6 and 15, the Minister in authorising untied grants in the first grant year is to ensure that the amounts of those grants are allocated among the States in accordance with this section.


(3) Subject to subsection (6), $146,000,000 is to be allocated among the States in the proportions determined by the Minister to be appropriate but so that no State is allocated less than $7,300,000.


(4) Subject to subsection (6), $310,504,000 is to be allocated among the States in accordance with Schedule 2.


(5) Subject to subsection (6), the balance of the amounts is to be allocated among the States in the proportions determined by the Minister to be appropriate.


(6) Where grants to a State cannot be authorised in the first grant year because there is no housing agreement with the State in force in that year, the amounts that the Minister determines would have been allocated for untied grants to that State in that year under subsections (3), (4) and (5) are to be dealt with as follows:
(a) where advances to that State that may be retained by that State in accordance with arrangements under section 17 were made out of the amounts - the amount of the advances is to be so retained by that State;
(b) the amounts, less the amount retained under paragraph (a), may be allocated in that year among such of the States and the Australian Capital Territory with which a housing agreement is in force in that year, and in such proportions, as the Minister determines to be appropriate.


(7) This section does not affect the operation of any priority provision in a housing agreement.

HOUSING ASSISTANCE ACT 1989 - SECT 13
Allocation among the States of untied grants after first grant year

SECT

13. (1) For the purposes of this section:
(a) a State is not to be taken to be a State in a grant year if a housing agreement with the State was not made before that year; and
(b) except for the purposes of subsection (5A), the Australian Capital Territory is not to be taken to be a State before 1 July 1993.


(2) Subject to sections 6 and 15, the Minister, in authorising untied grants to be made after the first grant year, is to ensure that the amounts of those grants are allocated among the States in accordance with this section.


(3) In each grant year, $146,000,000 is to be allocated among the States as far as practicable on an equal per capita basis but so that no State is allocated less than $7,300,000.


(4) In the second grant year, $208,038,000 is to be allocated among the States in accordance with Schedule 3.


(5) In the third grant year, $102,466,000 is to be allocated among the States in accordance with Schedule 3.


(5A) In the fourth grant year not more than $75,000,000 may be allocated to such of the States as the Minister considers appropriate, having regard to proposals for employment generation in the housing industry submitted by State Ministers.


(5B) In the fifth grant year not more than $25,000,000 may be allocated to such of the States as the Minister considers appropriate, having regard to proposals for employment generation in the housing industry submitted by State Ministers.


(6) Where, because of paragraph (1) (a), part of an amount referred to in subsection (4) or (5) is not allocated under the subsection in a grant year, the part may be allocated in the year among such of the States and, where a housing agreement with the Australian Capital Territory is in force in the year, that Territory, and in such proportions, as the Minister determines to be appropriate.


(7) Subject to subsection (7B), the balance of the amounts to be allocated in accordance with this section in each grant year is to be allocated among the States as far as practicable on an equal per capita basis.


(7A) If the operation of subsection (5A) or (5B) has resulted in a State gaining, in respect of the fourth or fifth grant year, a smaller or larger share of untied grants than the share to which it would otherwise have been entitled, subsection (7B) applies to that State.


(7B) The Minister is to ensure that the allocation of untied grants in respect of the sixth and seventh grant years is such as to ensure that the total amount of untied grants allocated to a State to which this subsection applies in respect of the fourth, fifth, sixth and seventh grant years is as nearly as practicable what it would have been if subsections (5A) and (5B) had not operated.


(8) This section does not affect the operation of any priority provision in a housing agreement.

HOUSING ASSISTANCE ACT 1989 - SECT 14
Payments for research, development and evaluation

SECT

14. (1) Where the money appropriated by the Parliament for the purpose of making payments under this Act in a grant year exceeds $456,504,000, the Minister may approve payments in that year of such amounts as the Minister determines, not exceeding $100,000, for the purpose of research, development and evaluation in relation to housing assistance.


(2) A payment is to be made on terms and conditions determined by the Minister.

HOUSING ASSISTANCE ACT 1989 - SECT 15
Grants to be matched by State

SECT

15. (1) In this section:
"State expenditure", in relation to a State and a grant year, means the total amount that the State has used or proposes to use in respect of that year in relation to housing out of money that is, under a housing agreement with the State, matching funds.


(2) The Minister, in authorising untied grants to a State in a grant year, is to ensure that they do not reach an amount that would result in their not being matched, in accordance with the housing agreement with the State, by the State expenditure for the year.


(3) Where the amount allocated under section 12 or 13 to a State in respect of a grant year exceeds the amount of untied grants for that year that, because of subsection (2), can be authorised, the Minister may authorise the payment, out of the excess, of additional untied grants to such other of the States as the Minister determines to be appropriate.


(4) For the purposes of any provision of a housing agreement relating to the provision of matching funds by a State:
(a) the total of the amounts received by the State under subsections 13 (5A) and (5B) is to be taken to be allocated in equal amounts in respect of the sixth and seventh grant years; and
(b) if:
(i) the amount of a grant has not been fully paid to a State in a
grant year; and
(ii) the Minister, under subsection 7A (1), has determined that the
amount remaining unpaid, or part of it, is to be carried over;
the amount of the grant is taken to be reduced by the amount remaining unpaid and the amount allocated to the State in respect of the next grant year is taken to be increased by the amount carried over.

HOUSING ASSISTANCE ACT 1989 - SECT 16
Reallocation or retention of specific grants

SECT

16. (1) Where:
(a) the Minister has authorised specific grants to a State in a grant year; and
(b) after consulting the State Minister, the Minister is satisfied, having regard to the amounts that the State is able to expend in respect of that year for specific assistance, that it would not be appropriate for the grants to be paid in full;
the Minister may:
(c) vary the authorisation by reducing the total amount of the grants; or
(d) so vary the authorisation and authorise such additional specific grants, not exceeding the reduction, as the Minister determines to be appropriate to such other of the States as the Minister determines to be appropriate.


(2) Where:
(a) the Minister has authorised specific grants to a State in a grant year; and
(b) after consulting the State Minister, the Minister is satisfied in respect of the grants or any of them that the State has contravened, or has acted in a manner that is inconsistent with, either or both of the following:
(i) a housing agreement with the State;
(ii) a guideline made under the agreement;
the Minister:
(c) may revoke the authorisation; or
(d) may vary the authorisation by reducing the amount authorised; or
(e) may:
(i) revoke the authorisation; and
(ii) declare the amount authorised by the revoked authorisation to
be available for reallocation; or
(f) may:
(i) vary the authorisation by reducing the amount authorised; and
(ii) declare the amount of the reduction to be available for
reallocation.


(3) Where the Minister declares an amount to be available for reallocation, the Minister may authorise additional specific grants, not exceeding the reduction, of such amounts as the Minister determines to be appropriate to such other of the States as the Minister determines to be appropriate.

HOUSING ASSISTANCE ACT 1989 - SECT 17
Advances

SECT

17. (1) The Minister may make arrangements for the making to a State, by way of financial assistance, of, and may authorise, advances on account of grants that are expected to become payable to the State during the first grant year.


(2) The arrangements are to provide for the effect on the advances of the following circumstances:
(a) the making of a housing agreement with the State;
(b) the failure of the State to make a housing agreement in the first grant year.

HOUSING ASSISTANCE ACT 1989 - SECT 18
Payments under the 1984 Act

SECT

18. Where:
(a) a payment was made to a State under the 1984 Act after 30 June 1989 and before the commencement of section 4; and
(b) the State enters into a housing agreement with the Commonwealth during the first grant year;
the payment is to be taken to have been an advance to the State under section 17 on account of:
(c) in the case of a payment made for the purpose mentioned in paragraph 6 (1) (a) of the 1984 Act - the appropriate specific grant; and
(d) in the case of a payment made for a purpose mentioned in paragraph 6 (1) (b) of the 1984 Act - an untied grant.

HOUSING ASSISTANCE ACT 1989 - SECT 19
Determinations to be in writing

SECT

19. A determination by the Minister under this Act must be in writing signed by the Minister.

HOUSING ASSISTANCE ACT 1989 - SECT 20
Annual report by Minister

SECT

20. The Minister, as soon as practicable after the end of each grant year, is to cause to be laid before each House of the Parliament a report relating to:
(a) the operation of housing agreements; and
(b) any other matter that the Minister considers relevant.

HOUSING ASSISTANCE ACT 1989 - SECT 21
Amendment of the 1984 Act

SECT

21. (1) The 1984 Act is amended:
(a) by omitting from subsection 8 (1A) "each of the years commencing on 1 July 1988 and 1 July 1989" and substituting "the year commencing on 1 July 1988"; and
(b) by omitting from subsection 8 (1B) "each of the years commencing on 1 July 1988 and 1 July 1989" and substituting "the year commencing on 1 July 1988.".


(2) The amendments of section 8 of the 1984 Act made by subsection (1) do not affect the appropriation by that section of any money paid out before the commencement of section 7.

HOUSING ASSISTANCE ACT 1989 - SCHEDULE 1

SCH

SCHEDULE 1 Section 4
FORM OF HOUSING AGREEMENT AN AGREEMENT made the day of One thousand
nine hundred and between -
THE COMMONWEALTH OF AUSTRALIA 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 WESTERN AUSTRALIA of the fifth part,
THE STATE OF SOUTH AUSTRALIA of the sixth part,
THE STATE OF TASMANIA of the seventh part,
THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part, and
THE AUSTRALIAN CAPITAL TERRITORY of the ninth 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;
(B) by an agreement between the Commonwealth, the States of Australia
and the Northern Territory of Australia dated the twenty-fifth day of
October 1984, being an agreement in the form authorised to be executed
on behalf of the Commonwealth by the Housing Assistance Act 1984 of the
Commonwealth Parliament and being the last of the agreements referred to
in Recital (A), provision was so made with respect to the ten years
commencing on the first day of July 1984;
(C) the Ministers of the respective governments throughout Australia who
are responsible for housing have agreed upon the provision of rental
housing assistance and home purchase assistance during the ten years
commencing on the first day of July 1989;
(D) the primary principle of this agreement is to ensure that every
person in Australia has access to secure adequate and appropriate
housing at a price within his or her capacity to pay by seeking
to:
alleviate housing-related poverty; and ensure that housing assistance
is, as far as possible, delivered equitably to persons resident in
different forms of housing tenure.
In implementing this principle, assistance provided under the agreement
will also reflect the following detailed principles:
(a) Assistance Generally The primary consideration in delivering housing
assistance under this agreement shall be the needs of people.
In determining the eligibility of applicants for assistance under this
agreement:
assistance shall seek to provide access to housing for those unable to
obtain or maintain affordable finance for adequate and appropriate
housing purchase from the private sector or from other sources outside
of the agreement;
assistance provided shall be available to all sections of the community
irrespective of age, sex, marital status, race, religion, disability or
life situation. Persons who need support to live in the community shall
be eligible for assistance. It is recognised, however, that such support
is not a responsibility under this agreement;
priority in granting assistance shall be determined by the need for
assistance;
any limits on eligibility for assistance shall be based primarily on
financial circumstances. In determining this, the level of income, the
value of relevant assets and the income from them, the number of
dependent children and costs arising from disability or other special
circumstances, shall be taken into account; and
to ensure consistency in the application of these eligibility
principles, limits of eligibility shall be reviewed at appropriate
intervals of time.
In the delivery of housing assistance, as far as is possible, people
should be given an equal choice between the different forms of housing
assistance programs under this agreement.
Housing assistance programs developed under this agreement shall be
designed so that maximum social benefit is derived from previous
investment in housing. Assistance shall be provided in a co-ordinated
and flexible manner to meet the changing employment and other needs and
circumstances of people receiving assistance. To this end and where
appropriate:
housing assistance provided under this agreement should be co-ordinated
with housing and accommodation assistance programs outside this
agreement;
the provision of assistance for people shall be co-ordinated between the
specific purpose programs within the agreement and general housing
assistance under the agreement; and
assistance shall facilitate the portability of waiting times for
applicants for assistance, and the transfer of tenants, between regions
and forms of assistance within a State, and, where practicable, between
States.
(b) Rental Housing The provision of rental housing is a key element of
this agreement.
People in rental housing shall have security of tenure. Subject to
fulfilment by the tenant of the tenancy conditions, this principle of
security of tenure shall operate in a State in accordance with this
Recital to ensure that:
tenants are not to be forced to leave their home because of actions
inconsistent with this agreement by a State. Where a tenant is required
to move from one dwelling to another by a State, a choice of dwellings
and locations appropriate to the tenant's needs is to be provided;
a physical and locational environment appropriate to the tenant's needs
is provided; and
recognition is accorded to the rights of applicants and tenants and
other users of assistance.
Programs and funding arrangements under this agreement should seek to
develop the public housing sector as a viable and diversified form of
housing choice and refrain from discrimination.
Programs and funding arrangements under this agreement shall be
developed so as to increase progressively the availability of rental
housing to a level commensurate with the need for it in the community.
Rental housing should reflect general community housing standards and
should be accessible to community and other services. Poor location of
dwellings, an inadequate range of choice of dwellings, and
stigmatisation of the status of rental housing tenants should be avoided
to the maximum extent practicable.
Rental housing stock should, as far as possible, be designed to cater
for the needs and preferences of current and likely future applicants.
The design, style and siting of rental housing will, to the maximum
extent practicable:
reflect the need for access to employment opportunities and services;
reflect the need for accessibility and suitability for habitation by
people with disabilities, Aboriginals, youth, the elderly or other
identified groups; and
support the energy conservation policies of the governments.
(c) Income Related Assistance to Tenants Assistance measures in the
public rental sector should be co-ordinated with assistance to private
tenants and should recognise the income support nature of the assistance
and the inter-relationship of this assistance with Commonwealth
assistance to pensioners and other beneficiaries under the Social
Security Act 1947.
(d) Implementation States will be able to exercise maximum autonomy and
flexibility in developing the administrative arrangements necessary to
achieve these principles;
(E) the Ministers referred to in Recital (C) recognise the relationship
between the principles and policies reflected in this agreement and the
need to co-ordinate these with those affecting home purchasers and
tenants including tenants in private housing and in emergency and
supported accommodation;
(F) 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 like assistance to the Northern Territory of Australia
and the Australian Capital Territory and that the terms and conditions
on which the grant of financial assistance should be made are those set
out in this agreement;
(G) the Commonwealth and the States have decided that the agreement
referred to in Recital (B) shall, save as provided for by subclause 1
(3) of this agreement, cease to operate on and from the first day of
July 1989; and
(H) the Parliament of the Commonwealth has authorised the execution by
and on behalf of the Commonwealth of this agreement and the provision of
financial assistance 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 be deemed to have come into effect on 1 July
1989 in respect of the Commonwealth and of a State when it is signed on
behalf of the Commonwealth, and:
(a) where the laws of a State require that its Parliament authorise the
execution of, or approves, the agreement, when it 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; or
(b) where the laws of the State do not require that its Parliament
authorise the execution of, or approve, the agreement, when it has been
signed on behalf of the State.
1 (2) Notwithstanding that in this agreement all the States are named as
parties, this agreement shall operate as an agreement between the
Commonwealth and the party or parties in respect of which it comes into
force as fully and effectually as if the party or parties in respect of
which it comes into force were the only party or parties so named other
than the Commonwealth.
1 (3) Subject to obligations arising under Part VIII of the agreement
referred to in Recital (B) and unperformed prior to the first day of
July 1989 that agreement shall be deemed to have ceased to operate on
and from that date.
PART II - PARTIES
2 (1) A reference in this agreement to a State shall, except where the
contrary intention appears and according to the requirements of the
context, be deemed to include a reference to the Northern Territory of
Australia and to the Australian Capital Territory.
2 (2) In this agreement, subject to this clause and except where the
context otherwise indicates -
(a) "the Commonwealth" means the Commonwealth of Australia;
(b) each State, including the Northern Territory of Australia and the
Australian Capital Territory, named as a party in respect of which this
agreement comes into force is referred to as a "State" and, except where
the context otherwise indicates, "the States" means all of those States;
and
(c) "the Australian Capital Territory" means the body politic
established under the Crown by that name by section 7 of the Australian
Capital Territory (Self-Government) Act 1988.
PART III - INTERPRETATION
3 (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
"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.
3 (2) A reference in this agreement to -
(a) a Minister includes the Minister or other member of the Federal
Executive Council; or
(b) a State Minister includes a Minister of the relevant State or other
member of the State Executive Council, acting on behalf of, or for the
time being acting for, the Minister or State Minister referred to.
4. In this agreement unless the contrary intention appears or the
context otherwise requires -
"direct costs" means costs and fees generally accepted in the private
sector as related to the production or purchase of rental housing:
(a) including relevant overheads and administration costs; and
(b) excluding stamp duties of the State;
"dwelling" means a dwelling-house or flat and includes such fences,
outbuildings and other improvements and such connections 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;
"existing housing agreements" means both the agreements referred to in
the first Schedule to the form of agreement scheduled to the Housing
Assistance Act 1984 and the agreement dated the twelfth day of March
1985 in the form scheduled to that Act ("the 1984 Agreement");
Family Allowance Supplement" means the Family Allowance Supplement for
which Part IX of the Social Security Act 1947 provides;
"home purchaser" means -
(a) a person including a participant in a shared ownership scheme
purchasing with assistance under Part VIII housing including rental
housing; or
(b) a person who is a rental purchaser;
"housing" means residential housing including dwellings and other forms
of residential accommodation;
"person" includes a body, co-operative, group or other organisation
whether incorporated or not;
"previous housing arrangements" means the provisions in relation to
housing -
(a) that were made:
(i) by the existing housing agreements;
(ii) by the States Grants (Housing) Act 1971, the Housing Assistance Act
1973, the Housing Assistance Act 1978, the States (Works and Housing)
Assistance Act 1982, the States (Works and Housing) Assistance Act 1983,
the Housing Assistance Act 1984, the States (Works and Housing)
Assistance Acts 1984 and 1985, the Housing Assistance Amendment Act 1987
and the States (Works and Housing) Assistance Act 1988; and
(iii) under any arrangements entered into pursuant to the Special
Employment-related Programs Act 1982; and
(b) that are made by legislation passed hereafter by the Commonwealth
Parliament under which financial assistance is made available to the
State for housing, but on terms and conditions specified in this
agreement;
"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;
"rental purchase" means a purchase under a terms contract of sale;
"rental purchaser" means a person purchasing under a terms contract of
sale;
"shared ownership" means the ownership of a share in a dwelling;
"the Commonwealth Act" means the legislation of the Commonwealth
Parliament by which an agreement substantially in this form is
authorised to be executed by or on behalf of the Commonwealth;
"upgrading" means improvements, excluding repairs and other maintenance,
relating to a rental dwelling which is so identified in State housing
authority published accounts; and
"year" means a period of twelve months commencing on the first day of
July.
5. 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 subclause is, unless otherwise indicated, to the
relevant subclause of the clause in which the reference appears;
(c) the Schedule referred to is the Schedule to the agreement;
(d) words importing a gender include every other gender;
(e) words in the singular number include the plural and vice versa; and
(f) a reference to a date on or by which a thing is to be done shall, if
that date falls on a Saturday, Sunday, public holiday or bank holiday in
the place in which the thing is to be done, be read and construed as if
the reference was to the day immediately preceding that day which is not
a Saturday, Sunday, public holiday or bank holiday in that place.
PART IV - OBJECTIVE OF AGREEMENT
6. 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 (D).
PART V - FINANCIAL ASSISTANCE
7 (1) In order to assist the States in the achievement of the objective
of this agreement, the Commonwealth will, upon and subject to the
provisions of this agreement, out of moneys appropriated by Parliament
for the purpose, provide to the States during the years of this
agreement, financial assistance for housing purposes (hereinafter in
this agreement referred to as "financial assistance") by way of interest
free non-repayable grants ("grants").
7 (2) The years of this agreement shall be the ten years commencing on
the first day of July in the years 1989, 1990, 1991, 1992, 1993, 1994,
1995, 1996, 1997 and 1998.
8. The Commonwealth will provide financial assistance:
(a) in respect of the first year of the agreement:
(i) to the States, excluding the Australian Capital Territory, totalling
one thousand and ten million four hundred and four thousand dollars
($1010.404 million) consisting of:
(A) two hundred and thirty three million one hundred and fifty four
thousand dollars ($233.154 million) by way of specific housing
assistance under Part XII; and
(B) seven hundred and seventy seven million two hundred and fifty
thousand dollars ($777.250 million) by way of untied assistance; and
(ii) to the Australian Capital Territory, of seventeen million seven
hundred and seventy two thousand dollars ($17.772 million) by way of
specific housing assistance and untied assistance; and
(b) in respect of each of the second year, the third year and the fourth
year of the agreement:
(i) to the States, excluding the Australian Capital Territory, being an
amount equal to the first amount specified in subparagraph 8 (a) (i);
and
(ii) to the Australian Capital Territory, being an amount equal to the
amount specified in subparagraph 8 (a) (ii), by way of specific housing
assistance and untied assistance; and
(c) in respect of:
(i) any of the second year, the third year or the fourth year of the
agreement for which the Minister determines additional financial
assistance; and
(ii) each of the remaining years of the agreement - an amount determined
by the Minister for each of those years, in writing signed by the
Minister.
9. The Commonwealth may provide to the States out of moneys appropriated
by the Commonwealth Parliament for the purpose, financial assistance for
home purchase assistance, rental housing assistance and, in accordance
with Part XII, specific housing assistance.
10. In and for the purpose of this agreement:
(a) the following grants shall be known as "specific housing assistance
grants":
(i) financial assistance under sub-subparagraph 8 (a) (i) (A);
(ii) so much of financial assistance provided under subparagraph 8 (a)
(ii) as is authorised for expenditure under clause 30; and
(iii) so much of financial assistance provided under paragraph 8 (b) as
is authorised for expenditure under clause 30; and
(iv) so much of other financial assistance authorised for expenditure
under clause 30; and
(b) financial assistance to be provided other than specific housing
assistance grants shall be known as "untied assistance".
11. Financial assistance shall be allocated between the States in such
manner as is provided by the Commonwealth Act and it shall be a
condition with respect to the provision of untied assistance that a
State will match the amount of that financial assistance from its own
resources in accordance with Part VI.
12. A State shall, as agreed by the Minister and State Minister, include
in material for use by persons seeking or receiving housing assistance
from the State funded under this agreement, particulars to be provided
by the Minister sufficient to indicate that that housing assistance is
provided in whole or in part with financial assistance from the
Commonwealth.
PART VI - STATE MATCHING FUNDS
13 (1) In relation to untied assistance a State will provide from its
own resources and apply funds ("matching funds") in accordance with this
Part.
13 (2) Subject to the subclause 13 (3), the amount of matching funds to
be provided in respect of a year in accordance with this Part shall be
an amount equal to the amount of untied assistance provided to the State
in respect of that year, determined as follows:
(a) at least half ("grant matching funds") shall be grants paid by the
State into the Rental Capital Account;
(b) the balance shall be met from the value of home loans provided under
Part VIII through home purchase assistance programs agreed between the
Minister and State Minister; and
(c) an amount determined by the Minister under paragraph 36 (b) shall be
deemed to remain "untied assistance" for the purpose of this Part.
13 (3) In respect of the first four years the level of grant matching
funds otherwise to be applied to the Rental Capital Account will be
phased in as follows:
(a) in the first year the State will match on a $3:$12 basis;
(b) in the second year the State will match on a $4:$12 basis;
(c) in the third year the State will match on a $5:$12 basis; and
(d) in the fourth year the State will match on a $1:$2 basis.
13 (4) A State may, as agreed by the Minister and State Minister, count
as grant matching funds in a year, amounts provided by it in the
previous year in accordance with paragraph 13 (2) (a) in excess of the
level of matching funds required in subclause 13 (3) for that year, up
to a limit of 10 per cent of the funds so required to be provided in
that previous year.
13 (5) A State will have to pay no more in matching funds relating to
the first $1028.176 million of financial assistance provided:
(a) in any of the years referred to in subclause 13 (3) than would have
been paid had the allocation and matching fund requirements to apply for
the said fourth year been applied in any of those years; and
(b) in any year than would have been required had the level of untied
assistance been $792.931 million.
13 (6) Except as to the first year, for which proposals shall be agreed
by the Minister and State Minister by the thirty first day of December,
a State shall, by the thirty first day of March preceding the second and
each succeeding year of this agreement, furnish of the Commonwealth, in
a reasonable form to be determined by the Minister after consultation
with the State Minister, proposals for agreement by the Minister for the
provision of matching funds during that year.
13 (7) Grant matching funds shall be:
(a)paid into the Rental Capital Account by regular monthly instalments
or as otherwise agreed between the Minister and State Minister; and
(b) separately identified in State budget documents or otherwise
identified as agreed between the Minister and State Minister.
13 (8) Matching funds will not include:
(a)funds which have been used to match financial assistance provided by
the Commonwealth otherwise than under this agreement;
(b) funds already paid into the Rental Capital Account;
(c) proceeds from the sale after the first day of July 1984 of rental
housing and land acquired under previous housing arrangements and this
agreement;
(d) any funds transferred from the Home Purchase Assistance Account to
the Rental Capital Account; or
(e) surpluses generated on rental housing operations.
14. Where a State in a year expends a specific housing assistance grant
in accordance with the Commonwealth/State plan for that year, this
expenditure shall not increase the level of matching funds required to
be provided by that State in that year.
PART VII - FINANCIAL ASSISTANCE ARRANGEMENTS
15 (1) Financial assistance in respect of a year of this agreement shall
be made available to a State during that year by regular monthly
instalments unless otherwise agreed between the Minister and State
Minister.
15 (2) If, following consultation with a State Minister, the Minister is
of the opinion that it is appropriate to do so, the Minister may
withhold a payment of financial assistance to a State which fails to
comply with subclause 13 (6), or clause 38 until the State remedies that
failure.
PART VIII - HOME PURCHASE ASSISTANCE
16. The Home Purchase Assistance Account of each State, for the
continuance of which clause 24 of the 1984 Agreement provided, shall
continue to operate. The Australian Capital Territory shall open an
Account by that name within the first year of this agreement. Each of
those Accounts and related Accounts are in this Part referred to as "the
Account" and elsewhere as "the Home Purchase Assistance Account".
17. This Account shall be:
(a) credited with:
(i) moneys received by the State in the course of home purchase
assistance program operations;
(ii) payments referred to in paragraph 23 (2) (f); and
(iii) any other funds, not being Commonwealth financial assistance or
State grant matching funds, which the State decides to apply to home
purchase assistance programs under this agreement; and
(b) debited with management costs and other outgoings, including
repayments and payments under paragraphs 20 (1) (a) and 20 (1) (b), in
respect of home purchase assistance program operations.
18. The money in this Account shall be made available for use for home
purchase assistance in accordance with this Part.
19. A State shall develop and administer home purchase assistance
programs, in accordance with Recital (D), having regard to the following
principles:
(a) the Account is to act as a basis and support for future home
purchase. To this end a State shall ensure:
(i) funds made available for use under clause 18 are to be used in a way
which at least maintains their real value; and
(ii) that funds paid into the Account in accordance with paragraph 23
(2) (f) are included in funds available for use in subparagraph 19 (a)
(i); and
(iii) that the amount of the funds available for use under paragraph
19 (a) (i) are reduced by the payments made under subparagraph 20 (1)
(j);
(b) the efficient use of the Account. To this end:
(i) a State shall maximise the use of funds from sources outside the
agreement for loans to home purchasers;
(ii) subsidy assistance is to be restricted to those who require it and
for the period of their need and recovered except in cases of individual
hardship. Where subsidy assistance is provided, the capacity of home
purchasers to repay loans to the State is to be reviewed at least
triennially with repayments to be adjusted or other action to be taken
where necessary. In any year other than one in which there is a review,
repayments are to be indexed by the Consumer Price Index or other
appropriate indicator; and
(iii) where a State wishes to provide subsidy assistance other than in
accordance with subparagraph (ii), it may do so from funds provided by
the State under subparagraph 17 (a) (iii);
(c) a State shall maximise the effectiveness of assistance provided. To
this end:
(i) the amount of a loan shall take into account market conditions,
including house prices, incomes and the size of a deposit; and
(ii) loan repayments are to be related to the income of home purchasers,
and to be affordable to those home purchasers. To this end, repayment
ratios operating in the private market are to be taken into account. A
State may reschedule repayments by a home purchaser in the event of
individual hardship;
(d) a State shall ensure maximum choice of assistance. To this end:
(i) no class of persons, including single persons, shall be excluded
from consideration;
(ii) home purchase schemes are to be accessible to existing public
tenants;
(iii) where appropriate, shared ownership and rental purchase schemes
are to be offered; and
(iv) schemes developed under this principle shall be consistent with the
provisions in clause 27 of this agreement; and
(e) home purchase assistance under the agreement is to be related to
other home purchase assistance programs operated by the Commonwealth and
States.

20 (1) Subject to subclause 20 (2), a State may use moneys in the
Account in accordance with the principles set out in Recital (D) and
clause 19 for:
(a) making repayments of principal and payments of interest falling due
in the then current year in respect of loan assistance by the
Commonwealth to the State under previous housing arrangements which has
been allocated for home purchase assistance under those arrangements;
(b) making repayments of principal and payments of interest in respect
of any State funds borrowed for the purpose of this Part allocated for
home purchase assistance;
(c) meeting expenditure by the State in providing and administering home
purchase assistance;
(d) facilitating borrowings of private bodies for home purchase
assistance under this agreement, including participation in joint
ventures and mortgage funds such as secondary mortgage market trusts;
(e) making loans and grants 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 organisations including permanent building
societies approved by the State Minister;
(iv) such other class or classes of bodies or organisations as are from
time to time agreed upon between the Minister and State Minister; and
(v) a class or classes of home purchasers, for the provision of home
purchase assistance;
(f) financing the construction and purchase of dwellings, including the
purchase of dwellings from home purchasers, and financing purchases by
home purchasers who are borrowers;
(g) purchasing housing, including private housing, for sale to rental
purchasers and financing such sales;
(h) the acquisition by the State of replacement housing of a value equal
to the amount for which the State sells rental housing to home
purchasers;
(i) urban renewal, housing advisory services and research and policy
development in relation to matters not funded by the Australian Housing
Research Council;
(j) making payments into the Rental Capital Account;
(k) making loans to participants in shared ownership schemes; and
(l) such other purposes as are from time to time agreed upon by the
Minister and State Minister.
20 (2) Moneys paid into the Account under paragraph 23 (2) (f) are to be
used only for home purchase assistance programs approved by the Minister
for public tenants and persons eligible for rental housing, with
preference to be given to shared ownership schemes.
PART IX - RENTAL HOUSING ASSISTANCE
21. A State will establish a Rental Capital Account (in this Part
referred to as "the Account" and elsewhere as "the Rental Capital
Account") which shall be operated by the State in accordance with this
Part. All moneys in the Account are to be fully expended or committed in
the year in which they are credited to the Account.
22. A State will pay into the Account:
(a) in each year of this agreement:
(i) all untied assistance paid by the Commonwealth to the State under
this agreement during that year;
(ii) an amount of specific housing assistance grants as agreed by the
Minister and State Minister;
(iii) grant matching funds;
(iv) such part of the cash surplus of revenue over outgoings arising
from rental operations as is not applied to rental operations in
accordance with clause 24;
(v) net proceeds from the sale after the first day of July 1989 of
rental housing and land acquired under previous housing arrangements and
the agreement referred to in Recital (B) or from the Account under this
agreement;
(vi) State moneys which the State wishes to, and may consistently with
this agreement, apply under clause 23 to activities referred to in this
Part; and
(vii) any other funds as agreed between the Minister and State Minister;
and
(b) additionally, in the first year of the agreement, such part of
financial assistance and State matching funds provided under previous
housing arrangements applied by the State to rental housing assistance
as is unexpended at 1 July 1989.
23 (1) A State may use, in accordance with the principles set out in
Recital (D) and the Commonwealth/State plan, moneys in the Account:
(a) to meet the direct costs associated with the construction of rental
housing;
(b) to meet the costs of, and associated with, the acquisition, planning
and development of land for rental housing development;
(c) 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, directly related to rental housing;
(d) to make payments for the upgrading of rental housing;
(e) to meet the direct costs associated with the purchase of housing for
rental housing;
(f) to engage in urban renewal activities related to rental housing;
(g) to allocate funds to local government bodies for the construction or
purchase of rental housing, where a State Minister considers it would be
more appropriate for rental housing to be provided by those bodies;
(h) to participate in joint ventures, co-operative enterprises or
similar arrangements, other than those of an on-going or recurrent
nature, for the provision of rental housing integrated with private
housing to achieve a desirable socio-economic mixture;
(i) to meet the direct costs of construction or purchase of dwellings
for rental to participants in shared ownership schemes, with both the
schemes and the costs to be agreed by the Minister and State Minister,
where it is not practicable to fund the construction or purchase for
this purpose from funding sources outside this agreement; and
(j) to pay principal and interest falling due in a year on Commonwealth
loans provided to the State under previous housing arrangements, the
amount of the payments being phased in over three years with 50 per cent
available in the first year, 75 per cent in the second year and 100 per
cent in the third year or as agreed by the Minister and State Minister,
having regard to the cash surplus on rental operations.
23 (2) The Minister shall determine for a State in a year part of the
Account as a general allowance, that part being an amount equal to 20
per cent, or as agreed between the Minister and State Minister, 25 per
cent, of:
(a) for the first three years of this agreement, the total of untied
assistance and grant matching funds:
(i) that would be paid into the Account in the fourth year of the
agreement if the total of untied assistance to all the States for that
year remained at the total for the first year of this agreement; or (ii)
that is paid into the Account in each of those years, as the State
Minister determines; and
(b) for the fourth year and succeeding years of this agreement, the
total of untied assistance and grant matching funds paid into the
Account in each of those years, to be used by the State -
(c) to provide funds to such non-profit, charitable bodies, rental
housing cooperatives, voluntary bodies, local government bodies and
other housing management bodies or groups as are approved by the State
Minister;
(d) where agreed by the Minister and State Minister:
(i) to lease;
(ii) to subsidise leasing of; and
(iii) to subsidise other arrangements not of a capital nature in
relation to, rental housing;
(e) to provide rental subsidies for renting private housing for those
who are unable to obtain or maintain affordable finance for adequate and
appropriate housing purchase from the private sector or from other
sources outside of the agreement;
(f) for payment into the Home Purchase Assistance Account, up to the
level of 15 per cent of the amounts referred to in paragraphs 23 (2) (a)
and 23 (2) (b);
(g) to meet the costs associated with:
(i) the consulting referred to in subclause 28 (5); and
(ii) the provision of information in accord with subclause 38 (6); or4
(h) for any other purposes agreed upon between the Minister and State
Minister.
23 (3) Any part of the general allowance determined by the Minister
under subclause 23 (2) for a State for a year which will not be fully
expended or committed in that year for the purposes of that subclause
shall be expended or committed in that year for the purposes of
subclause 23 (1).
23 (4) Where in any year the general allowance determined by the
Minister under subclause 23 (2) is not fully expended or committed in
the year for which it was determined, the amount of the general
allowance for the succeeding year shall be increased by the amount of
the general allowance not so expended or committed in the previous year
up to a maximum of one half of the general allowance for that year. If
the amount by which the general allowance for the succeeding year is so
increased is not fully expended or committed by the State in that year,
entitlement to it shall lapse.
24. Any cash surplus of revenue over outgoings arising from rental
operations in a year is to be applied to those operations or to the
Rental Capital Account.
25. The conditions of eligibility of persons for rental housing
assistance shall be determined by the State in accordance with the
principles set out in Recital (D) and so that priority in granting
assistance is determined by the need for assistance. No class of persons
including the classes of single persons and of young persons shall be
excluded from consideration.
26 (1) In determining rents for rental housing in accordance with the
principles set out in Recital (D), a State shall fix rents having regard
primarily to the costs to the State of providing that housing and to the
capacity of tenants to afford to pay. To this end:
(a) where a State considers that a tenant has sufficient capacity to
pay, the rent shall be not less than either that which would result from
the application of the principles set out in the Schedule or market
rent; and
(b) in other cases, the rent shall be set in accord with the tenant's
capacity to pay and to assist in the alleviation of poverty or hardship.
26 (2) In determining capacity to pay rent, a State shall:
(a) have regard to the level of income, including income from assets of
the tenant and other household members;
(b) take into account the number of dependent children in the tenant's
household;
(c) ensure that tenants with similar capacity to pay, pay similar rents;
(d) ensure that work disincentives are minimised; and
(e) have regard, as agreed between the Minister and State Minister, to
the receipt by any member of the tenant's household of Family Allowance
Supplement.
26 (3) Rents are to be reviewed at least annually.
26 (4) Subclauses 26 (2) and 26 (3) and paragraph 26 (1) (b) are to come
into effect from 1 July 1990 and paragraph 26 (1) (a) from the same date
or progressively over a period of three years from that date if the
State Minister so determines, unless the Minister and State Minister
agree upon another period to take into account the level of rents
prevailing in the private rental market.
27 (1) A State may sell rental housing, including that the subject of
shared ownership or rental purchase, but such sales, if any, shall be in
accordance with the principles set out in Recital (D) and subject to the
following conditions:
(a) all sales shall be made:
(i) in the case of a sale occurring within 5 years after the date of
purchase or construction of the house, at a price at least equal to the
replacement cost at the time of sale of the whole or the share of the
dwelling sold; and
(ii) in any other case, at a price equivalent to the market value or
replacement cost at the time of the sale of the whole or the share of
the dwelling sold, provided however that:
(iii) the vendor may allow a credit to the tenant in respect of the
value of improvements made by the tenant; and
(iv) the State may, if the Minister and State Minister agree, sell
rental housing to a body, co-operative, group or other organisation
which makes available rental housing under this agreement, at a price
that is less than the value or cost stipulated in subparagraphs 27 (1)
(a) (i) or 27 (1) (a) (ii);
(b) in all sales of rental housing, the vendor is, at or prior to the
date of the sale, to have received an amount calculated in accordance
with paragraph 27 (1) (a);
(c) in the case of a rental purchase, home purchase assistance funds may
be used to enable the vendor to receive an amount referred to in
paragraph 27 (1) (b); and
(d) net proceeds from sales of rental housing shall be used to construct
or purchase replacement housing and associated land which is to be
included in rental housing for the purpose of this agreement.
27 (2) A State shall ensure that if any body, co-operative, group or
other organisation which acquires rental housing with rental housing
assistance funds or acquires at other than market value or replacement
cost rental housing from the State, sells, otherwise disposes of, or
uses that housing for a purpose other than rental housing as provided
for under this Part:
(a) within five years of the date of purchase or construction of the
housing by the State, it shall repay to the State an amount equal to
what would be the net proceeds from a sale at replacement cost of the
housing; and
(b) thereafter, it shall repay to the State an amount equal to what
would be the net proceeds from the sale, at market value or replacement
cost, of that housing.
PART X - COMMONWEALTH/STATE HOUSING ASSISTANCE PLANS
28 (1) There shall be a Commonwealth/State plan in accordance with
Recital (D), agreed by the Minister and State Minister, in respect of a
State for each year of this agreement, excluding the first year, setting
out the provision of housing assistance under this agreement. The plan
shall have regard to the period and level of funding provided under
Parts V and VI of this agreement. In each year the plan shall be agreed
by the Minister and State Minister prior to the commencement of the year
to which the plan refers.
28 (2) Within the framework of the funds available under Parts V and VI,
and the operation of other Commonwealth and State housing programs, each
plan shall include:
(a) an assessment of housing need;
(b) an assessment both of the resources available to provide programs of
assistance and of the assistance resulting from those programs. In
assessing the resources, regard shall be had to the effect of sales of
rental housing under this agreement;
(c) allocation priorities and targets;
(d) program delivery priorities and targets including priorities and
targets relating to the provision of information under Part XV of this
agreement; and
(e) other matters as agreed between the Minister and a State Minister.
28 (3) A State shall draft for submission to the Joint Officers' Group
the Commonwealth/State plan on the basis of the broad content and
framework of the plan agreed by the Joint Officers' Group. This Group
shall then consider and recommend the Commonwealth/State plan to the
Minister through the State Minister for their mutual agreement.
28 (4) A Joint Officers' Group shall be established in respect of a
State, and shall comprise members drawn from:
(a) the Commonwealth; and
(b) the State as nominated through the agency of the State determined
under clause 33.
28 (5) The Joint Officers' Group shall be responsible for:
(a) consulting with organisations relevant to the delivery of public
housing assistance;
(b) developing and agreeing on the broad content and framework of the
Commonwealth/State plan, taking into account Commonwealth and State
priorities for rental housing assistance in that year; and
(c) considering the Commonwealth/State plan submitted to it by the State
and recommending the plan to the Minister and State Minister.
PART XI - USER RIGHTS AND PARTICIPATION
29. In implementation of the principles set out in Recital (D) a State
shall ensure that, by way of user rights and participation:
(a) applicants for, and recipients of, housing assistance have access
to:
(i) information about available housing assistance and its current
policies on that assistance, tenancy conditions and appeal mechanisms.
In providing this information, a State shall have particular regard to
the special needs of people with limited abilities in relation to
literacy, comprehension or command of English; and
(ii) an independent appeal mechanism, agreed by the Minister and State
Minister, from decisions as to the provision by the State of housing
assistance funded under this agreement, which is to be in force by 31
August 1990; and
(b) persons in receipt of rental housing assistance have maximum
opportunity to participate in the management of their dwellings and
estates and in the development of public housing policies.
PART XII - SPECIFIC HOUSING ASSISTANCE
30. The Minister may in writing authorise, subject to guidelines made
consistently with this agreement and agreed between the Minister and a
State Minister relating to the following programs including guidelines
as to the provision of any funds by a State in relation to each program,
grants to a State for expenditure on:
(a) rental housing assistance for pensioners;
(b) rental housing assistance for Aboriginals;
(c) mortgage and rent relief;
(d) crisis accommodation;
(e) local government and community housing; and
(f) any other program determined by the Minister following consultation
with a State.
31 (1) Rental housing provided with grants for specific housing
assistance may be sold by a State subject to and in accordance with the
provisions of clause 27.
31 (2) Unless otherwise agreed by the Minister, the net proceeds of sale
of rental housing provided for a specific purpose or program with grants
under this Part shall only be applied to provide rental housing for the
same purpose or program.
31 (3) This clause shall apply to rental housing that has been provided
from grants made by the Commonwealth to a State under Part III of the
Housing Assistance Act 1978 or under Part XI of both the agreement made
23 December 1981, the execution of which was authorised by the Housing
Assistance Act 1981, and the 1984 Agreement respectively or under this
Part of this agreement.
PART XIII - OBSERVANCE OF AGREEMENT
32. 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.
33. A State shall determine an agency or agencies (including bodies or
organisations 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.
34. If the Minister in writing informs the State Minister that the
Minister is satisfied the State has failed to ensure that an amount of
financial assistance provided to the State has been applied for the
purposes and in the manner provided for by this agreement with respect
to that financial assistance, the State will repay that amount or such
part of that amount as the Minister thinks reasonable to the
Commonwealth.
35. If a State fails for any reason to meet the requirements for the
provision by it of matching funds in accordance with Part VI or Part XII
with respect to any financial assistance that has been provided to it,
the State will upon request directed to the State Minister by the
Minister in writing, repay to the Commonwealth the amount of that
financial assistance or so much of that amount as is specified in the
request.
36. If the Minister and a State Minister cannot agree, in a year in
which it is to be agreed, on allocation or program delivery priorities
and targets to be included in a Commonwealth/State plan for the
subsequent year, or if a State fails to apply priorities or achieve
targets included in a Commonwealth/State plan in respect of a year,
otherwise than because of matters beyond its control, the Minister may,
following consultation with the State Minister:
(a) determine for the subsequent year, an amount of untied assistance
which is to be expended in that year on priorities and targets
determined by the Minister; or
(b) determine for the subsequent year, an amount which otherwise would
be untied assistance to become part of the specific housing assistance
for that State for that year.
PART XIV - TRIENNIAL EVALUATION
37. In accordance with the arrangements to be agreed between the
Minister and State Ministers, the operation of the agreement is to be
evaluated triennially.
PART XV - SUPPLY OF INFORMATION
38 (1) A State shall, not later than the thirtieth day of November
preceding the beginning of a year of this agreement, provide the
Minister in a reasonable form, determined by the Minister after
consultation with the State Minister:
(a) estimates of the financial resources and program outputs in respect
of rental housing and home purchase assistance programs for the year;
(b) revised estimates of those financial resources and program outputs
for the then current year; and
(c) final figures for those financial resources and program outputs for
the previous year.
38 (2) A State shall furnish in respect of each year to the Commonwealth
by the thirtieth day of November occurring after that year and in a
reasonable form to be determined by the Minister after consultation with
the State Minister:
(a) statements in respect of the operation of:
(i) the Rental Capital Account; and
(ii) the Home Purchase Assistance Account;
(b) statements which set out particulars of the expenditure during the
year by the State of:
(i) amounts on home purchase assistance programs, being matching funds
under paragraph 13 (2) (b); and
(ii) grants for specific housing assistance; and
(c) statements which set out:
(i) the manner in which the State has fixed rents in accordance with
clause 26; and
(ii) any cash surplus or deficit of revenue over outgoings arising from
rental operations.
38 (3) A State shall publish an audited statement on the operation in
each year of the Rental Capital Account no later than nine months after
the conclusion of a year.
38 (4) The information to be included in a statement pursuant to
subclause 38 (3) will be no less than that to be furnished to the
Minister on the operation of the Rental Capital Account, pursuant to
subclause 38 (2).
38 (5) A statement furnished pursuant to subclause 38 (2) is to be
certified as to its correctness by a person appointed by the State
Minister for that purpose.
38 (6) A State shall provide in writing to the Commonwealth in respect
of each year of this agreement by the thirtieth day of November
occurring after that year such program and non-identifying client
information as is reasonably requested by the Commonwealth to monitor
achievement of the objectives of this agreement and allocation and
program delivery priorities and targets identified in the
Commonwealth/State plan.
38 (7) The Commonwealth and the State shall provide each other with
information as agreed for program development and planning purposes.
PART XVI - VARIATION OF AGREEMENT
39 (1)The provisions of this agreement other than the principles set out
in Recital (D), Part IV, Part VI, Part X and Part XI may be varied as
between the Commonwealth and a State by agreement in writing between the
Minister and State Minister, but only after consultation between the
Minister and other State Ministers.
39 (2) A copy of an agreement or copies of the documents which
constitute an agreement under subclause 39 (1) shall be tabled in the
Parliament of the Commonwealth and, where necessary, of the State within
15 sitting days of respective Parliaments from the date upon which the
agreement is made.
39 (3) An agreement under subclause 39 (1) shall not affect the
operation of this agreement as between the Commonwealth and the States
other than a State with which the agreement has been made.
PART XVII - REPRESENTATION AND COMMUNICATIONS
40 (1) The Commonwealth shall, subject to subclause 40 (2), be
represented for the purposes of this agreement by the Department of
Community Services and Health and the Minister shall notify State
Ministers of the address of that Department and of any change at any
time of that address.
40 (2) In the event that the administration of this agreement for the
Commonwealth is allocated to a Minister other than a Minister
responsible for administering any part of the Department of Community
Services and Health, the Commonwealth shall be represented by the
Department administered by that other Minister and that Minister shall
notify State Ministers of the address of that Department.
41. Each State shall be represented for the purposes of this agreement
by the Department administered by the State Minister or such other
agency of the State as the State Minister shall nominate ("Agency") and
the State Minister shall notify the Minister of the address of that
Department or Agency and of any change at any time of the Department or
Agency or of the address.
42 (1) A notice or other communication under or in connection 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 or Agency by which it
is given and addressed to or delivered at the address of the Department
or Agency to which it is directed.
42 (2) For the purpose of this clause writing includes a teleprinter
message and the address for such a message shall be the teleprinter
address of the receiving Department or Agency.
42 (3) A notice or other communications shall be given under this clause
when it is received in the appropriate form by the Department or Agency
to which it is directed.
THE SCHEDULE Clause 26
COST RENT PRINCIPLES
The following principles are to be used to determine real cost rents for
rental housing. The principles are not to be applied to the costs of
individual dwellings but rather to the total cost pool of the rental
stock. In allocating the total cost pool to individual tenancies, a
State will have regard to variation in housing standards and locations
within the constraints of available administrative arrangements for
assessing these variations.
Recovery of operating expenses
1. The costs to be recovered in this respect are ordinarily listed in
the rental accounts of State housing authorities as yearly expenditure
items.
These include:
(a) administration;
(b) rates;
(c) insurance;
(d) specific operating expenses associated with particular types of
units;
(e) annual maintenance;
(f) yearly allowance for rent arrears and debts written off;
(g) yearly allowance for vacancies;
(h) leasing expenses related to land and dwellings;
(i) operating expenses of community facilities; and
(j) any other operating costs agreed between the Minister and a State
Minister.

Interest Charges
2. The costs to be recovered by the State include:
(a) interest payable by a State on loan funds invested by it in rental
housing; and
(b) a notional amount of interest on all Commonwealth and State grants
invested in rental housing from and including 1989-90. That notional
amount of interest is to be calculated at a rate taken as equivalent to
the assessed secondary market yields published by the Reserve Bank of
Australia in periodical Statistical Bulletins for the last business day
of June preceding the commencement of the year in which the grants are
paid into the Rental Capital Account.
Depreciation
3. An amount with respect to depreciation is to be included in costs to
be recovered. To this end:
(a) the depreciation rate is to reflect a life of between 40-75 years of
the capital improvements on the land;
(b) the value of capital improvement will be based on the estimated
current capital improved value; and
(c) the minimum annual depreciation rate will be not less than the rate
resulting from a term of 75 years.
IN WITNESS WHEREOF etc

HOUSING ASSISTANCE ACT 1989 - SCHEDULE 2

SCH

SCHEDULE 2 Subsection 12 (4)
ALLOCATION AMONG STATES OF AMOUNTS APPROPRIATED FOR
UNTIED GRANTS IN RESPECT OF FIRST GRANT YEAR
State Amount
$
New South Wales 86,335,500
Victoria 71,477,000
Queensland 18,724,500
Western Australia 2,877,000
South Australia 39,584,500
Tasmania 27,657,500
Northern Territory 43,848,000
Total 310,504,000

HOUSING ASSISTANCE ACT 1989 - SCHEDULE 3

SCH

SCHEDULE 3 Subsections 13 (4) and (5)
ALLOCATION AMONG STATES OF AMOUNTS APPROPRIATED FOR
UNTIED GRANTS IN RESPECT OF SECOND AND THIRD GRANT YEARS
State Percentage of Total Amount
%
New South Wales 27.80
Victoria 23.02
Queensland 6.03
Western Australia 7.37
South Australia 12.75
Tasmania 8.91
Northern Territory 14.12