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6.2.4 Observations

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It is general policy to give both the Bank and the borrower at least one month's notice of the intention to cancel subsidy (longer for deceased estates having regard to GO 6.2.2.1), regardless of the circumstances surrounding cancellation, even though this is not specified in the legislation. This is because:

  • the decision to cancel is a reviewable decision and the person therefore has appeal rights;
  • it allows the Bank to make arrangements with the person regarding repayment of the outstanding debt; and
  • it allows the Bank to put its systems into place so that no further subsidy is claimed from the Commonwealth.
  • cancellation of subsidy does not in itself alter the eligibility status of an eligible person nor affect that person's right to apply for a further subsidised advance under the portability provisions.