Commonwealth Consolidated Acts

DEFENCE HOME OWNERSHIP ASSISTANCE SCHEME ACT 2008 - SECT 42

Scope

  (1)   This section applies if any of the following events occurs:

  (a)   a reasonably significant change to the agreement for the subsidised loan between the subsidised borrower and the loan provider who made the loan to the subsidised borrower, or to the conditions of the mortgage;

  (b)   a change that affects the way in which the subsidised borrower's service credit is worked out;

  (c)   a reasonably significant change to a house or permanent improvement mentioned in section   30 (including the destruction of the house or improvement), or any other reasonably significant change affecting the land;

  (d)   in a case in which the subsidised loan is for the purpose of building work, or to discharge another loan for such a purpose--the building work is completed;

  (e)   a change in the nature or extent of the interest held in the land by the subsidised borrower or his or her partner;

  (f)   in a case in which the subsidised borrower holds an interest in the land with his or her partner together (as mentioned in paragraph   38(a))--the subsidised borrower and the partner stop being partners;

  (g)   during the period covered by subsection   39(3) or 40(3)--the subsidised borrower, or a partner or dependant of the subsidised borrower, stops occupying a house on the land;

  (h)   the land starts to be used, to a reasonably significant extent, for the purpose of carrying on a business, trade or profession.

  (2)   If the subsidised loan relates to a unit, paragraph   (1)(h) does not apply to any accompanying common property, or any other unit, held under the same strata title (or similar) system.

Subsidy condition

  (3)   The subsidised borrower must give notice of the event to the Secretary, in the approved form, within a reasonable time after the time (the constructive knowledge time ) the Secretary is satisfied that it is reasonable for the subsidised borrower to have become aware of the event.

Note:   Sections   137.1 and 137.2 of the Criminal Code create offences for providing false or misleading information or documents.

  (4)   Without limiting subsection   (3), a subsidised borrower fails to comply with the subsection even if, at the constructive knowledge time, the borrower was not aware of the event.

Note:   A failure to comply with this condition is grounds for the Secretary to refuse to give a subsidy certificate on a future occasion, and to refuse authorisation for the payment of subsidy in relation to a future entitlement period (see sections   16 and 27).