3 Certificates of Entitlement

The Certificate of Entitlement is the basis for the payment of subsidy to Westpac. A Certificate of Entitlement certifies that the Government will pay a subsidy to the Bank, if the Bank provides the advance to the person named on the certificate for the purpose shown on the certificate.

A Certificate of Entitlement deals with either:

• the making of an advance;
• the transfer of an advance to another person; or
• the granting of instalment relief.

A subsidy wrongly paid cannot be easily recovered. If a client refuses to pay on demand, court action may be necessary to recover the wrongly paid amount.  Therefore the delegate's decision to issue a Certificate of Entitlement requires considerable care.

When the delegate is satisfied that a person is entitled to receive DSH assistance he/she issues a Certificate of Entitlement to that entitled person. The person then takes this Certificate of Entitlement to the Bank. Provided the person meets the lending criteria specified in Schedule C to the Agreement, the Bank will then make the subsidised advance available.

After the Bank has made the advance, a copy of the Certificate of Entitlement is returned to DSH. Subject to the verification process, it is the return of this certificate that triggers the commencement of the payment of subsidy.