Commonwealth Consolidated Acts Commonwealth Consolidated ActsLoan capital
(1) The loan capital in respect of which subsidy is payable to a subsidised borrower in relation to a subsidised loan during an entitlement period is the lesser of the following amounts:
(a) the capital amount owing by the subsidised borrower on the subsidised loan on the first authorisation day for that period;
(b) the amount of the subsidised borrower's loan limit (see subsection (2)), as applicable from time to time during the entitlement period.
Note: Special rules may apply for working out the amount of loan capital if a subsidised borrower and another person are liable in respect of the same subsidised loan (see sections 51A, 51B and 51C).
Loan limit--general rule
(2) The loan limit at a particular time (the loan limit time ) for a subsidised borrower who meets a description in an item in the following table at the loan limit time is as set out in the item according to the years of effective service completed (whether before or after the commencing day) by the borrower as at the loan limit time.
Loan limits | ||||||
Item | Subsidised borrower | Effective service for less than 4 years | Effective service for 4 years or more, and less than 8 years | Effective service for 8 years or more, and less than 12 years | Effective service for 12 years or more, and less than 20 years | Effective service for 20 years or more |
1 | A member of the Permanent Forces who is eligible as a serving member (see section 8) or rejoining member (see section 11) | 40% of the average house price | 60% of the average house price | 80% of the average house price | 80% of the average house price | 80% of the average house price |
2 | A member of the Reserves who is eligible as a serving member (see section 8) or rejoining member (see section 11) | Zero | 40% of the average house price | 60% of the average house price | 80% of the average house price | 80% of the average house price |
3 | A person who is eligible as an incapacitated member (see section 9), or as a rejoining incapacitated member (see section 10) | 40% of the average house price | 60% of the average house price | 80% of the average house price | 80% of the average house price | 80% of the average house price |
4 | A person who is eligible as a separated member (see section 12) | 40% of the average house price | 40% of the average house price | 40% of the average house price | 40% of the average house price | 80% of the average house price |
5 | A person who is eligible as an old scheme member | $80,000 | $80,000 | $80,000 | $80,000 | $80,000 |
Note: For the applicable average house price, see subsection (3).
Loan limit--applicable average house price
(3) The average house price in relation to a loan limit for a subsidised loan during an entitlement period is the average house price applicable on the first authorisation day for that period.
Note: The average house price is determined under section 52.