Document ID: chunk:federal_register_of_legislation:C2004A04077:section:1918:p7
Version: federal_register_of_legislation:C2004A04077
Segment Type: section
Provision Reference: s 1918 (pt 7/11)
Character Range: 16140–18907

by the person in relation to obtaining the person's right of residence in a retirement village.";

  (n) by omitting from subsection (4) "The" and substituting "Subject to subsection (5a), the";

(p) by inserting after subsection (4) the following subsection:

   "(4a) The Secretary must not issue a certificate of entitlement in relation to subsidy on an initial advance, an additional advance or a further advance that a person may seek from the Bank for the purposes referred to in paragraph (2) (k) or (3) (f) unless satisfied that:

       (a) the debt was incurred by the person with the approval of the Secretary; or

       (b) the terms for repayment of the debt are onerous and having regard to the person's income, compliance with those terms is causing the person serious financial hardship; or

       (c) the person is suffering serious financial hardship for other reasons beyond the control of the person.";

(q) by inserting after subsection (5) the following subsections:

   "(5a) The Secretary may issue a certificate of entitlement in relation to subsidy on an initial advance, an additional advance or a further advance for the purposes referred to in paragraphs (2) (f) or (g) or (3) (e) or (f) if the Secretary considers it necessary to do so to give effect:

       (a) to a decision made by a person under subsection 43 (6); or

    (b) to a direction of the Administrative Appeals Tribunal.

   "(5b) In deciding whether a person is suffering serious financial hardship for the purposes of paragraph (4) (c) or (d) or (4a) (b) or (c), the Secretary is to have regard to any guidelines approved by the Minister under subsection (5c).

   "(5c) 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.

     "(5d) 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.

     "(5e) For the purposes of this section, the terms of a mortgage, charge or encumbrance are onerous if the interest rate under the mortgage, charge or encumbrance is not less than 120% of the Benchmark rate as calculated under the agreement.".

  Commencement: Day of Royal Assent

10. (1) Section 19 of the Principal Act is repealed and the following section is substituted:

Criteria for issue of certificate of entitlement: further advance

"19. The Secretary must not issue a certificate of entitlement in relation to subsidy on a further advance to a person unless the person is or was a purchaser or borrower in relation to a Corporation advance, a subsidised advance or a contract of sale on or after 9 December 1987.".