MEMBERS of the ARes will benefit under the new Defence Home Ownership Assistance Scheme (DHOAS) to be introduced on July 1, 2008.

As reported in Army on June 14, the DHOAS is a significant initiative designed to improve ADF recruitment and retention rates. The new DHOAS will overcome the shortcomings of existing schemes by providing a scheme that reflects contemporary housing and home finance markets, together with the flexibility to keep pace with both markets.

Eligibility
Reservists will become eligible for assistance under the DHOAS on the completion of eight consecutive years of efficient service.

They will then become entitled to payment of the subsidy assistance on completing each subsequent year of efficient service.

For the purpose of eligibility and entitlement, efficient service across all categories of ARes will be 20 days of Reserve service
performed in the training year.

Eligible members will lose both eligibility and entitlement to the subsidy assistance where there is a break in efficient service of two years or more.

Reservists will be eligible for subsidy assistance under a subsidised loan limit of:

• $160,000 after eight years of service;
  
• $234,000 after 12 years of service; and
  
• $312,000 after 16 years of service.

It should be noted that these figures are subject to change and may vary from those that will apply from July 2008.

CFTS
The new scheme will also provide reservists with the opportunity to accelerate their eligibility when they provide Continuous Full Time Service (CFTS).

CFTS of less than six months will count as one year of efficient service towards eligibility, while between six and 12 months of CFTS will count as two years towards eligibility.

The performance of CFTS will not change the rate at which an eligible member accrues a subsidy entitlement.

If the subsidy is not accessed on becoming an eligible member, the entitlement accrues on a one-for-one basis for each subsequent year of efficient service. Extra years of subsidy are also granted for warlike service.

Standby Reserves
The DHOAS will introduce some changes from the existing Defence HomeOwner Scheme for permanent ADF members transferring to the Standby Reserves.

On transferring from the permanent ADF to the Standby Reserves, members will have two years to apply for the DHOAS subsidy and access their accrued subsidy assistance entitlement.

If during this period they provide service, either as Reserve training days or CFTS, this service will contribute to their subsidy assistance entitlement.

From the second anniversary of transferring to the Standby Reserves, members who are not already accessing the DHOAS, and have provided no further service, either Reserve training days or CFTS, will no longer be able to apply.

Their accrued subsidy entitlement will be frozen on this date, but will be preserved until the fifth anniversary of their transfer to the Standby Reserves, at which point it will expire.

Members may reactivate their accrued subsidy assistance entitlement if they rejoin the permanent ADF before the fifth anniversary of their transfer to the Standby Reserves.

For the latest information on the DHOAS, and its application to reservists, see http://intranet.defence.gov.au/pac/ or www.defence.gov.au/dpe/pac/

HOME TRUTHS
This article has been contributed by the Defence Personnel Executive. While the information in this article reflects the Government’s intention to provide home ownership assistance, in the absence of a legal basis, it does not establish an entitlement and may be subject to change before July 1, 2008. Members are advised to exercise caution when making a decision on home ownership in anticipation of the introduction of the scheme.