You are here
37/1995 Modifications & Repairs
National Office Instruction
amending General Orders (1993 edition)
Instruction No. 37
Date of Effect: 3 April 1995
Modifications and Repairs
Maximum Amount Included on Certificates of Entitlement
The purpose of this Instruction is to clarify the amount which should be recorded in the Maximum advance box on a Certificate of Entitlement issued for the purposes of to modify, to repair, or to modify and repair a home.
The restrictions on acceptable modifications have led, in some cases, to undue detail in determining a monetary limit for the advance when issuing a Certificate of Entitlement for the above purposes. If the limit is overly restrictive in initial or further advance cases, the client may be forced into an additional advance at 10 % pa interest if the cost of the work subsequently exceeds the specified amount. The Standard Phrases for Special Information on Certificates of Entitlement were issued on 24 November 1994 with the intention of overcoming this problem. However, it was not clearly spelt out that it was no longer necessary to seek detailed costs of the proposed work. Activities, such as asking for quotes or examining plans, are no longer necessary.
Maximum flexibility should be afforded in such circumstances. The amount of the maximum loan available (be it $25,000 in an Initial Advance case or the maximum available under a Further Advance case) should be inserted in the Maximum advance box and The DSH subsidised advance must not exceed the cost to repair or to modify and repair or $.....(maximum loan available) whichever is the lesser should be inserted in the Special information box. Westpac then administers the actual amount advanced within these limits.
Policy to be applied
Given that restrictions on allowable modifications have been removed, quotations and copies of plans should not be obtained to consider applications for modification and/or repair to a home. The Certificate of Entitlement should be issued with the maximum possible amount being quoted in the Maximum advance box with the over-rider The DSH subsidised advance must not exceed the cost to repair or to modify and repair or $.....(maximum loan available) whichever is the lesser in the Special information box.
No changes are required to General Orders.
Effect on previously issued NOIs (previously COIs)
This Instruction has no effect on any previously issued NOI.
The opportunity is taken to correct a typographical error in Entitlement GO 184.108.40.206 where the word operation inadvertently became occupation.
Attached is an amended page for the Entitlement General Orders. Please replace the existing page 23/24 with the amended version.
The currently issued List of Operative COIs omits the second half of COI 23. A new list is supplied to correct this, and a modified COI 23 is supplied to replace the partially superseded Instruction.
27 March 1995