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6.2.2 Inclusions


Subsidy can only be cancelled if it is being paid on behalf of a borrower at the time the notice of cancellation is issued. Deceased Estates.  Subsection 27A(1) provides for the cancellation of subsidy where the eligible person has died and there is no surviving spouse or de facto partner.  Cancellation may occur after three months have elapsed from the date of death of the last surviving member of a couple.  Subparagraph 27A(1)(d) further provides that cancellation may occur where the Secretary considers it appropriate to do so.  As a matter of policy, cancellation of subsidy in deceased estate cases where there is no surviving spouse or de facto partner is to occur in every case unless there are special circumstances which would warrant the continuation of subsidy.  Special circumstances may be considered to exist where the deceased is survived by dependants who were dependent upon the deceased for their housing needs at the time of death.  The dependants might be minors or handicapped adult children, and it would be inappropriate to subject them to the additional costs inherent in discharging the existing mortgage and/or borrowing at commercial rates of interest. Failure to Substitute Security.  Sub-clause 11.15(a)(vii) of the Agreement provides for the termination/suspension and/or recovery of subsidy where a borrower is discovered to have sold a 'holding' or 'retirement village accommodation' to which subsidy relates and has not acquired another 'holding' or 'retirement village accommodation' as a substituted security within six months in accordance with Sub-clause 11.2A of the Agreement.