2 DSH Act and Agreement with Westpac

The DSH Act deals primarily with the relationship between the applicant or borrower and the Commonwealth.   The Act:

• sets out the criteria which must be satisfied to enable a person to receive DSH assistance;
• specifies the forms of assistance available;
• authorises the provision of assistance (mainly interest subsidy) to entitled persons; and
• provides, in certain circumstances, for the termination of subsidy and recovery from the borrower of amounts already paid.

The Agreement between the Government and Westpac, included as Schedule 1 to the DSH Act, regulates the relationship between the Bank and the Government under the Subsidy Scheme. It stipulates the rights and obligations of both parties and the remedies available in the event of a failure of either party to meet those obligations.

Under the Agreement,  Westpac's primary obligation is to make subsidised advances to entitled persons, while the Government's primary obligation is to verify and pay subsidy to Westpac in respect of such loans and vested assets.