Document ID: chunk:federal_register_of_legislation:F2024C00941:reg:32:p2
Version: federal_register_of_legislation:F2024C00941
Segment Type: reg
Provision Reference: reg 32 (pt 2/3)
Character Range: 47208–49719

of a disqualifying breach:
 (a) the Secretary must, during the next 6 months, endeavour to transfer to other persons all of the approved participant's allocations for rental dwellings; and
 (b) at the end of those 6 months, any of those allocations that were not so transferred is revoked by force of this subsection.

Requirements for transfer
 (7) The Secretary must not transfer an allocation to a person under this section unless the Secretary is satisfied that the person:
 (a) is not a disqualified person; and
 (b) has the capacity to properly manage the allocation; and
 (c) is a suitable person to hold the allocation; and
 (d) has agreed, in writing, to the transfer.

Notice of transfer and imposition of conditions
 (8) If the Secretary transfers an allocation under this section:
 (a) the Secretary must give written notice of the transfer to:
 (i) the original approved participant; and
 (ii) the gaining approved participant; and
 (iii) each investor for a rental dwelling covered by the allocation about whom the Secretary has been notified under section 48; and
 (b) the notice must state the day on which the transfer has effect, which must be the earliest of the following days or a later day:
 (i) the day the notice is prepared;
 (ii) if an investor has requested the transfer—the day the request was made;
 (iii) if an application for an identical transfer was made under section 21 before the breach referred to in paragraph (1)(a) of this section happens—the day that application was made; and
 (c) the Secretary may impose additional special conditions on the allocation, so long as the gaining approved participant agrees to the imposition of those conditions before the allocation is transferred.
Note: Paragraph (b) means the gaining approved participant, and not the original approved participant, will be entitled to the portion of the incentive that relates to the part of the NRAS year that includes, and is after, the day the transfer takes effect (see subsections 50(1) and 53(2)).

Notice of revocation
 (9) If an allocation is revoked under or by this section:
 (a) the Secretary must give the approved participant written notice of the revocation; and
 (b) the notice must state the day on which the revocation has effect, which must be the day the notice is prepared or a later day.
Note: No incentive is available for the part of the NRAS year that is after the day the revocation takes effect (see section 16 and subsection 51(2)).

Division 6—General rules for transfers