Section 20 (1)  The Secretary shall not issue a certificate of entitlement in relation to subsidy on a widow or widower advance that a person may seek from the Bank unless satisfied that:

(a) the person is:

(i)the widow, widower, or widowed parent of an eligible person; or

(ii)a spouse or de facto partner of an eligible person who is temporarily or permanently insane; and

(b) the person is a purchaser or borrower in relation to:

(i)land; or

(ii)land and a dwelling-house; or

(iii)a right of residence in a retirement village

(c) the widow or widower advance relates to that land, land and dwelling-house or right of residence.

(1A) For the purposes of paragraph (1)(b), the person is taken to be a borrower in relation to a right of residence in a retirement village if the person is, or will be, an assignor in relation to the advance.

Section 20 (2)  The Secretary shall not issue a certificate of entitlement in relation to a subsidy on a widow or widower advance that a person may seek from the Bank unless satisfied that:

(a) the advance is for the purpose of keeping the buildings, fences, fixtures and other improvements on the relevant land or of the person's retirement village accommodation in good order and repair and it would cause financial hardship to the person if he or she were to bear the cost of keeping them in good order and repair; or

(b)the advance is for the purpose of paying rates, taxes, charges or other outgoings in relation to the relevant land, land and dwelling-house or right of residence in a retirement village and it would cause financial hardship to the person if he or she were to pay those rates, taxes, charges or other outgoings.

Section 20 (3)  In deciding whether a person is suffering financial hardship for the purposes of paragraph (2)(a) or (b), the Secretary is to have regard to any guidelines approved by the Minister under subsection (4).

Section 20 (4)  The Minister may approve guidelines setting out matters to be taken into account in deciding whether a person is suffering financial hardship for the purposes of this Act.

Section 20 (5)  Guidelines approved by the Minister in accordance with this section are disallowable instruments for the purpose of section 46A of the Acts Interpretation Act 1901.

Section 21 (1)  The Secretary shall not issue a certificate of entitlement in relation to subsidy on an advance for essential repairs that a person may seek from the Bank unless satisfied that:

(a) the person is an eligible person who is a purchaser or a borrower in relation to:

(i)land; or

(ii)land and a dwelling-house; or

(iii)a right of residence in a retirement village;

(b) the advance relates to that land, land and dwelling-house or right of residence;

(c) the advance is for the purpose of enabling the person to effect repairs essential to keep the buildings, fences, fixtures and other improvements on that land or of that person's retirement village accommodation in good order and repair; and

(d) it would cause serious financial hardship to the person if he or she were to bear the cost of keeping them in good order and repair.

(1A) For the purposes of paragraph (1)(a), the person is taken to be a borrower in relation to a right of residence in a retirement village if the person is, or will be, an assignor in relation to the advance.

Section 21 (2)  In deciding whether a person is suffering serious financial hardship for the purposes of paragraph (1)(d), the Secretary is to have regard to any guidelines approved by the Minister under subsection (3).

Section 21 (3)  The Minister may approve guidelines setting out matters to be taken into account in deciding whether a person is suffering serious financial hardship for the purposes of this Act.

Section 21 (4)  Guidelines approved by the Minister in accordance with this section are disallowable instruments for the purposes of section 46A of the Acts Interpretation  Act 1901.

Section 23 (1)  Where, on application by a person for a certificate of entitlement in relation to instalment relief that the person may seek from the Bank, the Secretary is satisfied that:

(a)the applicant is a purchaser or borrower who is:

(i)the widow or widower of an eligible person; or

(ii)a widowed parent  of an eligible person; or

(iii)a spouse or de facto partner of an eligible person who is temporarily or permanently insane; or

(b)the applicant is not a person referred to in paragraph (a) but is a purchaser or a borrower who is an eligible person and the amounts of the instalments payable under the relevant contract of sale, mortgage or other security include an amount of interest calculated at a rate of more than 3.75% per year;

and that it would cause financial hardship to the applicant if the applicant were to pay in full the amounts of the instalments, the Secretary shall determine the amount by which the amounts of the instalments should be reduced and the period during which that reduction should apply.

Section 23 (2)  Where the Secretary makes a determination, the Secretary shall issue to the applicant a certificate of entitlement specifying:

(a)the amount by which the amounts of the instalments should be reduced and the period during which that reduction should apply; and

(b)particulars of such other matters (if any) as are required by the agreement.

Section 23 (3)  The Secretary shall cause a copy of each certificate of entitlement under this section to be given to the Bank.

Section 23 (4)  On the issue of a certificate of entitlement under this section, the amounts of instalments payable under the contract of sale, mortgage or other security to which the certificate relates are, if the Bank grants instalment relief to the applicant, reduced by the amount specified in the certificate during the period specified in the certificate.

Section 23 (5)  In deciding whether a person is suffering financial hardship for the purposes of subsection (1), the Secretary is to have regard to any guidelines approved by the Minister under subsection (6).

Section 23 (6)  The Minister may approve guidelines setting out matters to be taken into account in deciding whether a person is suffering financial hardship for the purposes of this Act.

Section 23 (7)  Guidelines approved by the Minister in accordance with this section are disallowable instruments for the purposes of section 46A of the Acts Interpretation  Act 1901.

Maximum amounts for which subsidy is payable

Section 25 (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 the Bank is:

...

(c) in the case of a widow or widower advance or an advance for essential repairs - such an amount as the Secretary determines is necessary to give effect to the purpose for which the advance is made; and

...

Section 32  The rate of interest that shall be specified under paragraph 17(3)(d) in a certificate of entitlement in relation to a widow or widower advance that a person may seek from the Bank is 3.75% per year.

Rate of interest on advances for essential repairs

Section 35  The rate of interest that shall be specified under paragraph 17(3)(d) in a certificate of entitlement in relation to an advance for essential repairs that a person may seek from the Bank is 6.85% per year.

Section 36 (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 the Bank is:

...

(b) in the case of an additional advance, a widow or widower advance or an advance for essential repairs:

(i)a term equal to the unexpired part of the term of the borrower's initial advance, further advance or Corporation advance, or of the purchaser's contract of sale, as the case may be; or

(ii)If the Secretary determines that a longer maximum term would be appropriate, having regard to the circumstances of the case - such longer term as the Secretary determines;

...

Section 36 (3)  Where the term of a specified portfolio asset which vests in the Bank under section 6B, or of a subsidised advance increases as a result of a grant of instalment relief to the purchaser or borrower, the maximum term of that specified portfolio asset or advance shall be taken to have been increased by a period equal to the period by which the term of that asset or advance was so increased.

Agreement between the Commonwealth of Australia and Westpac Banking Corporation

7.1Applications

7.1.1 — In the event of an applicant approaching the Bank for

...

(b)Instalment Relief; and/or

...

the Bank shall provide the applicant with an application for a Certificate of Entitlement which application shall be completed by the applicant.

7.1.2 — The Bank agrees that nothing in this Agreement prohibits an applicant for a Certificate of Entitlement from applying initially directly to the Commonwealth for the purpose of obtaining such Certificate except that in the case of an application for a Certificate of Entitlement for Instalment Relief, such application can only be made through the Bank.

7.1.3 — The Bank or the applicant shall forthwith on completion of an application for a Certificate of Entitlement forward that application to the Commonwealth.

7.1.4 — On receipt by the Commonwealth of a completed application for a Certificate of Entitlement either from the Bank or an applicant, the Commonwealth shall proceed to determine whether the applicant is an Entitled applicant and, if so, shall issue to the applicant a Certificate of Entitlement.

7.1.5 — On receipt by the Commonwealth of a completed application for a Certificate of Entitlement for Instalment Relief from the Bank, the Commonwealth shall proceed to determine whether the applicant is an Entitled applicant and, if so, shall issue a Certificate of Entitlement within seven (7) days of receipt of the said application by the Commonwealth.

7.7Failure to meeting Lending Criteria

The Bank further agrees that the failure by an Entitled Applicant to meet the lending criteria set out in Schedule "C" will be the sole basis for a refusal in whole or in part by the Bank to make the Subsidised Advance or grant the Instalment Relief or give effect to the Commonwealth's consent to the Transfer of Land and Subsidy sought by the Entitled Applicant.

8.4Instalment Relief

The parties agree that where the Bank provides Instalment Relief, such relief will be granted by:

(a)a reduction in the monthly instalments of the Borrower under the Specified Portfolio Asset or Subsidised Advance and an extension in the repayment term of that Specified Portfolio Asset or Subsidised Advance to cover the cost of such reduction, thereby extending the period over which the Commonwealth pays Subsidy to the Bank; and

(b)The incorporation in the Limit of the Subsidised Advance Loan Account applicable to the Specified Portfolio Asset or Subsidised Advance of;

(i)part or all of the amount of Arrears outstanding in that Subsidised Advance Loan Account at the date of effect of the Instalment Relief; and

(ii)unpaid interest where agreed instalments are reduced as a result of the grant of Instalment Relief.

8.7Failure to meet lending criteria

In the event that a Certificate of Entitlement indicates that:

...

(iii) Instalment Relief is to be granted,

and the Entitled Applicant fails to meet the lending criteria set out in Schedule "C", the Bank agrees:

(a)that the Bank shall provide to the Commonwealth its reasons in writing as to why the Entitled Applicant has failed to meet the lending criteria set out in Schedule "C"; and

(b)at the election of the Commonwealth, the Bank and the Commonwealth shall meet to discuss what arrangements, if any, suitable to the Bank and the Commonwealth can be made whereby the Bank will provide the advance or instalment relief to the Entitled Applicant.