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Part 3: Home sale or purchase

7.3.1 Overview

  1. Two forms of assistance to purchase or sell a home are available to a member or their dependants when they are posted in Australia.

    1. A one-off payment to assist them to purchase a home. The home must be in their posting location and they must live in it. This payment is made under the home purchase assistance scheme (HPAS). It is payable once only during a member's ADF service.

    2. Reimbursement to the member of the reasonable costs for selling a home and purchasing another home they will live in on the next posting. This assistance is given under the home purchase or sale expenses allowance (HPSEA).

    Note: HPAS replaced the initial purchase element of HPSEA for the first purchase on or after 1 July 2000. HPSEA applies for sale-purchase after the initial payment under HPAS.

  2. A member who purchases their first home under HPAS then enters into a following sell-purchase-sell home ownership cycle. Each time they purchase or sell another home on a posting, they can be reimbursed the reasonable costs involved. Time limits apply. This does not mean that a home must be sold or purchased following each posting. This is the member's choice. However, continued eligibility depends on a member maintaining the cycle of sell-purchase-sell. Some exceptions apply.

7.3.2 Member this Part applies to

This Part applies to a member on continuous full-time service who meets either of these conditions.

  1. At the time of purchasing a home, it is expected that they will continue to serve in the posting location for a further 12 months.

  2. At the time of purchasing a home, they are a member with dependants (unaccompanied) and it is expected that they will keep that category for a further 12 months.

Note: In the total workforce model, a member on continuous full-time service may be described as a member in Service category 6 or 7. A member who is in Service category 3, 4 or 5 and Service option C is also on continuous full-time service.

7.3.3 Member this Part does not apply to

This Part does not apply to a member on either of these kinds of service.

  1. Reserve service.

  2. Continuous full-time service for less than 12 months.

Note: In the total workforce model, a member of the Reserves may be described as a member in Service category 2, 3, 4 or 5.

7.3.4 Dual entitlement

Note: Section 1.6.1 deals with situations where a member's adult dependant is also a member, and they would both be eligible for assistance with purchase or sale of a home. Only one of the members is eligible.

See: Chapter 1 Part 6 section 1.6.1, Dual entitlement – member's adult dependant is also a member

7.3.5 Contents

This Part includes the following Divisions.

Division 1 Initial home purchase

Division 2 Sale of home or subsequent purchase – general

Division 3 Sale of home or subsequent purchase – particular situations and costs that may be reimbursed

7.3.6 Definitions

This table defines the terms that apply to this Part.

Definitions
Term Definition in this Part
Agent A person or organisation who is doing one of the following.
  1. Conducting business as a real estate agent. They must be registered or licensed if that is required by the law of the state or territory where they do business.
  2. Acting on behalf of an eligible person for the mortgage, purchase or sale of a home.
Auctioneer A person conducting business as an auctioneer. They must be registered or licensed if that is required by the law of the state or territory where they do business.
Eligible person A member or their dependant.
Home A dwelling in Australia. This includes a flat or other dwelling forming part of a building. It does not include a caravan or mobile home. Ownership means the following.
  1. For a member's own home, ownership exists when one or a combination of these people hold an interest as an owner of the home.
    1. The member.
    2. A dependant of the member.
    3. A company, trust, partnership or joint venture that the member or their dependant hold a controlling interest or equal share in.
  2. The interest can be a controlling interest or an equal share.
    Example: Three members buy an equal third share in a home as tenants in common. They rent it when posted out of the home's location. When one of the members returns to the home's location, they are seen to own the home.
  3. The interest in the home may be legal or equitable.
    Example: The member is the sole beneficiary of a trust. Their dependant is the trustee who holds the legal title. The home is still the member's because they have an equitable interest in it.
See also: Part 2, Suitable own home
Land broker or conveyancer A person licensed or authorised under the law of a state or territory to transact business relating to the registration of titles to land.
Posting A posting that a Service authority intends should last at least 12 months.
Previous benefit
  1. For Division 1, either of these payments.
    1. Home purchase or sale expenses allowance (HPSEA) for a first home on or before 30 June 2000.
    2. Payment under the home purchase assistance scheme (HPAS) on or after 1 July 2000.
  2. For Divisions 2 and 3, the reimbursement to the member of expenses the member was most recently eligible for, before or after 1 July 2000.
Professional fees and disbursements Fees for work performed by a solicitor, land broker or conveyancer. The fees must relate to a sale or purchase and related disbursements. They include fees for a valuation, pest inspection, building inspection, survey or similar. They do not include a procurement fee for arranging or negotiating a mortgage. The fees may be incurred by the solicitor, land broker or conveyancer on the member's or eligible person's behalf.
This also includes mandatory fees imposed by relevant State or local authorities.

7.3.7 Location of eligibility

This table defines the location where the eligibility arises.

Location of eligibility
Item If the member is... then the eligibility is located...
1. a member with dependants (unaccompanied) where the dependents live.
2. a member who is unaccompanied, but not a member with dependants (unaccompanied) where the member is posted.
3. another member where the member is posted.

Application to Reservists: Yes, on continuous full-time service of longer than 12 months.



Forms

Copies of forms are available on the webforms system or through the Defence Service Centre.

  • AC970, Application for Home Purchase Assistance Scheme (HPAS) or Home Purchase or Sales Expense Allowance

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Further info

Contact

Defence Housing Australia

139 342

www.dha.gov.au

Defence Service Centre

1800 DEFENCE (1800 333 362)

YourCustomer.Service@defence.gov.au