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TAX ALERT: PACMATE Annex 3.A, item 100. |
6.2.7A Purpose
6.2.8 Members
entitled
6.2.9 Purchase
of land only
6.2.10 Purchase
of home – definition
6.2.11 Conditions
of entitlement
6.2.12 When
the home must be occupied
6.2.13 Amount
of entitlement
6.2.14 When a
member must repay HPAS
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A member may be entitled to assistance for purchase of 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. This Division describes the conditions of entitlement and when the assistance must be repaid to the Commonwealth. |
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A member is entitled to assistance with initial home purchase if they meet the conditions set out in this Part and have had no previous entitlement. |
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A member is not entitled to assistance with purchasing land. |
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An eligible person has purchased a home when they do any one of the following. |
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a. |
They sign a contract to purchase it. |
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b. |
They sign an agreement for it to be built. |
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c. |
They begin to build it, if they are an owner-builder. |
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1. |
For a member to qualify for HPAS, all of these criteria must be met. |
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a. |
They must not have had a previous entitlement. |
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b. |
The home is at their current or new posting location. Exception 1: A member with dependants (unaccompanied) may be eligible for assistance with purchase of a home where their dependants live. To qualify, their dependants must be expected to stay there for at least 12 months after the member takes up duty in the new posting location. If the family has moved to another location they must be expected to remain in that location for at least 12 months from date of purchase. When the member's dependants join them at the new posting location, HPAS entitlement transfers to the new location. |
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Exception 2: The member may be entitled to HPAS at the location where the member's dependants live, if the member meets all the following conditions. |
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i. |
The member is a member with dependants. |
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ii. |
The member is posted to a seagoing ship. |
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iii. |
The member purchases a home at the location where the member's dependants live. |
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iv. |
The member's dependants are expected to remain at that location for 12 months from the date the contract for purchase is signed. |
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c. |
On the day the contract for purchase is signed, they are expected to serve at the location where they purchase the home for 12 months after that purchase. Non-example: A member buys a home. When the
contract for purchase is signed, the member has a posting order to take place
in six months. Because the member is to be posted elsewhere they are not
expected to serve in the location for 12 months. The member does not meet the
condition in this p |
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d. |
A member with dependants (unaccompanied) is expected
to keep that category for the |
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e. |
An eligible person will live in the home within the period defined in clause 6.2.12, When the home must be occupied. |
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2. |
If a member's adult dependant is also a member, only one of them is entitled to HPAS. The other member may be entitled to HPAS in a future posting location. See: Chapter 1 Part 6 clause 1.6.1, Dual entitlement – member's adult dependant is also a member |
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An eligible person must occupy the home within a specific time. This table explains the periods of time for different kinds of purchasing or building situations. |
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When the member… |
then an eligible person must occupy the home within… |
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1. |
signs a contract for a home to be built |
the earlier of the following two periods. a. One month after the day it is ready for occupation. b. 12 months after an eligible person signs the contract. |
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2. |
begins to build a home as an owner-builder |
the earlier of the following two periods. a. One month after the day it is ready for occupation. b. 12 months after an eligible person begins to build it. |
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3. |
purchases a home in the new location: a. after official written notice of the posting is issued, and b. before they begin duty there |
one month after the earlier of these two dates. a. The day they begin duty in the new location. b. The date of settlement of the contract to purchase it. |
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4. |
purchases a home in any other circumstance |
one month after the date of settlement of the contract to purchase it. |
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1. |
The amount of entitlement is a one-off payment of $16,949 (before tax). Note: This amount will be included in the member's taxable income. Tax will be deducted at the time of payment. The payment is not reportable for fringe benefit tax purposes. |
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2. |
If an eligible person shares ownership with other persons, the HPAS payment is made according to the share of ownership with those other persons. For this clause, the member's family unit is treated as having one share of the home. See: Eligible person Example 1: A member purchases with one other person. The HPAS payment will reflect the share of ownership. For example, equal shares would result in payment of 50% of the HPAS amount. Example 2: A member, their spouse and the member's non-dependent father jointly purchase a home. The member and spouse live in the home with their two children. The member is entitled to 50% of the HPAS payment. |
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1. |
A member must repay the HPAS payment to the Commonwealth if either of the following happens. |
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a. |
The purchase of the home does not go ahead for any reason. Exception: If Service reasons prevent the purchase from going ahead, the CDF may decide that the member should be reimbursed their reasonable and unavoidable costs. See: Division 3 clause 6.2.30, Amounts and kinds of costs that may be reimbursed, for the maximum amounts that may be reimbursed to the member. |
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b. |
An eligible person does not occupy the home within the relevant period under clause 6.2.12, When the home must be occupied. Note: If Service reasons prevent an eligible person from occupying the home, the member does not have to repay the amount to the Commonwealth. |
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2. |
The CDF may extend the relevant period for occupation for up to 12 months. The CDF must be satisfied that an eligible person cannot occupy the home for a reason beyond their control. |
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3. |
A member is still eligible for assistance in future if they meet either of these criteria. |
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a. |
They repaid an HPAS payment to the Commonwealth for reasons described in this clause. |
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b. |
They were reimbursed costs under p |
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Persons who can make the decisions under paragraph 6.2.14.1.a and subclause 6.2.14.2 on behalf of the CDF: Defence Support Group: - Assistant
Director Long Service Leave and Home Purchase - Director
People Management Practices and Programming - Director
General People Services Executive Officer – HPAS/HPSEA |