2 Legislation

Last amended: 25 September 2013

(1)In this Act, unless the contrary intention appears:

home support advance means a subsidised advance to a person referred to in section 21A for a purpose referred to in that section.

eligible veteran means:

(a)a person covered by paragraph (a) of the definition of veteran in subsection 5C(1) of the Veterans' Entitlements Act 1986; or

(b)a member of the Forces (within the meaning of subsection 68(1) of that Act); or

(c)a member of a Peacekeeping Force (within the meaning of subsection 68(1) of that Act); or

(d)a widow or widower (within the meaning of subsection 5E(1) of that Act) of a person covered by paragraph (a), (b) or (c) of this definition.

21A Criteria for issue of certificate of entitlement: home support advances

The Secretary must not issue a certificate of entitlement in relation to subsidy on a home support advance that a person may seek from a credit provider unless the Secretary is satisfied that:

(a)the person is an eligible person (disregarding subsection 4(2C)) or is an eligible veteran; and

(b)either:

(i)the person is the owner of a dwelling-house; or

(ii)the person has a right of residence in a retirement village; and

(c)the advance is for a purpose related to the dwelling-house or the right of residence in the retirement village (other than for a purpose mentioned in paragraph 18(2)(a), (b), (c), (d), (f), (h) or (k)) that will assist the person to remain independently housed; and

(d)if a certificate of entitlement has been issued to the person in relation to an initial advance, an additional advance or a further advance—an advance has been made by the credit provider in accordance with the certificate or an advance that would be in accordance with the certificate has been refused by the credit provider; and

(e)if the person is liable to pay the outstanding amount of any one or more of the following:

(i)an initial advance;

(ii)an additional advance;

(iii)a further advance;

the sum of those outstanding amounts is less than $10,000; and

(f)a certificate of entitlement that relates to an initial advance, an additional advance or a further advance could not be issued to the person in respect of the application concerned.

25  Maximum amounts for which subsidy is payable

(1)Subject to this section, the amount that shall be specified under paragraph 17(3)(a) in a certificate of entitlement issued to a person in relation to a subsidised advance that the person may seek from a credit provider is:

(a) ...

              (e)              in the case of a home support advance—such amount as the Secretary determines is necessary to give effect to the purpose for which the advance is made, being an amount that is not more than:

(i)if no previous home support advances have been made to the person—$10,000; or

(ii)if any previous home support advances have been made to the person—$10,000 reduced by the sum of those previous advances.

35AAA  Rate of interest on home support advance

The rate of interest that must be specified under paragraph 17(3)(d) in a certificate of entitlement in relation to a ho — me support advance that a person may seek from a credit provider is 6.85% per year.

36  Maximum terms of advances

(1)Subject to section 37, the maximum term to be specified under paragraph 17(3)(b) in a certificate of entitlement in relation to a subsidised advance that a person may seek from a credit provider is:

(a)in the case of an initial advance or of a home support advance—25 years;