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Determinations/Social Security as made
This instrument sets out the methods for determining market value and adjustments to be made to the market value of real property or real assets securing a debt to the Commonwealth under the Pension Loans Scheme (known publicly as the Home Equity Access Scheme). When the Pension Loans Scheme participant has the benefit of the no negative equity guarantee under the Scheme, this will limit the amount of the debt repayable by the participant to the Commonwealth under the Scheme to no more than the adjusted value of the property.
Administered by: Social Services
Registered 21 Jul 2022
Tabling HistoryDate
Tabled HR26-Jul-2022
Tabled Senate26-Jul-2022

Commonwealth Coat of Arms of Australia

 

Social Security (Pension Loans Scheme—Market Value) Determination 2022

I, Ray Griggs AO CSC, Secretary of the Department of Social Services, make the following determination.

Dated                                       15 July 2022

Ray Griggs

Secretary of the Department of Social Services

 

  

  

  


Contents

Part 1—Preliminary                                                                                                                                        1

1............ Name............................................................................................................................. 1

2............ Commencement............................................................................................................. 1

3............ Authority....................................................................................................................... 1

4............ Definitions..................................................................................................................... 1

Part 2—Adjusted value for real assets and real property                                                       1

5............ Method for working out market value and adjustments to that value............................. 1

 


Part 1Preliminary

  

1  Name

                   This instrument is the Social Security (Pension Loans Scheme—Market Value) Determination 2022.

2  Commencement

             (1)  Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  The whole of this instrument

The later of:

(a) 1 July 2022; and

(b) the day after this instrument is registered.

22 July 2022 (paragraph (b) applies).

Note:          This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.

             (2)  Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under subsection 1144AA(6) of the Social Security Act 1991.

4  Definitions

                   In this instrument:

accredited valuer, in relation to property, means a person who is:

                     (a)  accredited as a certified practising valuer by the Australian Property Institute; or

                     (b)  a professional member of the Royal Institution of Chartered Surveyors who is entitled to be described as a Chartered Valuation Surveyor; or

                     (c)  registered or otherwise authorised, under the laws of the State or Territory in which the property is situated, to value that kind of property.

Act means the Social Security Act 1991.

Part 2Adjusted value for real assets and real property

  

5  Method for working out market value and adjustments to that value

             (1)  For the purposes of subparagraphs 1144AA(5)(a)(i) and (b)(i) of the Act, the market value of real assets or real property, at the time (the event time) the event mentioned in paragraph 1144AA(1)(c) or (2)(c) of the Act occurs in relation to the debt concerned, is the market value worked out under subsection (2).

             (2)  The market value of the real assets or real property is:

                     (a)  if the assets are sold, or the property is sold, before the event time—the sale price of the assets or property; or

                     (b)  if paragraph (a) does not apply and the Secretary and the person seeking to repay the debt, or the person from whom the Commonwealth seeks to recover the debt, agree to a value of the assets or property—the agreed value; or

                     (c)  if paragraphs (a) and (b) do not apply and the Secretary is satisfied that:

                              (i)  the market value of the assets or property for one or more days (each of which is a valuation day) within the period of 3 months before the event time has been determined by an accredited valuer or valuers; and

                             (ii)  there has been no material change in circumstances affecting the market value since the most recent valuation day;

                            the market value as so determined for the most recent valuation day; or

                     (d)  if paragraphs (a), (b) and (c) do not apply—the market value, at the event time, as determined by an accredited valuer.

             (3)  However, if the Secretary reasonably believes the sale price of the real assets or real property under paragraph (2)(a) is reduced because the assets are undervalued, or the property is undervalued, due to:

                     (a)  the sale not being conducted in good faith; or

                     (b)  the sale not being conducted on fair and reasonable terms; or

                     (c)  the sale being conducted between parties who were not dealing with each other at arm’s length; or

                     (d)  any other circumstances;

the market value of the assets or property is the market value, at the time of the sale, as determined by an accredited valuer.

Adjustments to market value

             (4)  For the purposes of subparagraphs 1144AA(5)(a)(ii) and (b)(ii) of the Act, the market value of the real assets or real property worked out under this section is reduced by the total value of any charges or encumbrances over the assets or property, other than any charge referred to in paragraph 1133(3)(c) or section 1138 of the Act, worked out:

                     (a)  if the assets are sold, or the property is sold, before the event time—immediately before the assets are sold or the property is sold; or

                     (b)  if paragraph (2)(b) applies—at the time of the agreement; or

                     (c)  if paragraph (2)(c) applies—at the end of the most recent valuation day; or

                     (d)  if paragraph (2)(d) applies—at the event time.