Document ID: chunk:federal_register_of_legislation:C2025C00096:schedule:1:p31
Version: federal_register_of_legislation:C2025C00096
Segment Type: schedule
Provision Reference: sch 1 (pt 31/51)
Character Range: 240308–243157

in paragraph (b) hereunder:
       (a) the amount of Subsidy shall be equal to the difference between the actual amount of interest payable in that month by a Borrower on the Balance outstanding on any Subsidised Advance Loan Account and the notional amount of interest calculated by applying to the same Balance the Benchmark rate of interest determined at the end of the previous month pursuant to Sub‑clause 11.10;
       (b) in the event that the total amount of Portfolio Arrears exceeds 0.035 per cent of the aggregate of the Limits on all Subsidised Advance Loan Accounts, the total Subsidy payable pursuant to this Clause shall be reduced by an amount calculated by application of the following formula:

       where
          X = the amount by which the Subsidy is to be reduced;
          Y = the total Subsidy calculated in accordance with Sub‑clause 11.9(a);
          a = the amount by which Portfolio Arrears exceed 0.035 per cent of the aggregate of the Limits on all Subsidised Advance Loan Accounts; and
          b = the aggregate of the Balances of all Subsidised Advance Loan Accounts.
    11.10 Calculation of Benchmark Rate
    The Benchmark rate, being the maximum notional rate of interest to which the Bank is entitled in respect of the outstanding principal under all Specified Portfolio Assets and/or Subsidised Advances for the purpose of calculating payments of Subsidy to the Bank by the Commonwealth, shall be calculated in the manner provided in Sub‑clause 11.10.7 or, if applicable, Sub‑clause 11.10.8, by reference to the unregulated standard annual rates of interest applied in each State and the Australian Capital Territory and the Northern Territory to the first $25,000 (or such other amount as may be agreed by the Commonwealth and the Bank) of owner‑occupied housing loans provided by the five (5) largest banking group providers of housing finance in Australia.
          11.10.1 For the purposes of Sub‑clause 11.10, the unregulated standard annual rates of interest applied to owner‑occupied housing loans shall be the rate which is applied to the largest number of owner‑occupied housing loans outstanding in each State and the Australian Capital Territory and the Northern Territory to each of the banking groups concerned, as determined by reference to data compiled by the Reserve Bank of Australia or as the parties may otherwise agree.
          11.10.2 The five (5) largest banking group providers of housing finance in Australia for the purposes of this Sub‑clause shall be determined as at 1 July in each Financial Year that Subsidy is payable on the basis of data published by the Australian Bureau of Statistics or, if such information is not available, as may otherwise be agreed between the parties.
          11.10.3 In the event that the parties are unable to agree on:
            (a) the