Home’s where the financial hurt is

By Graham Howatt, of the Armed Forces Federation

PURCHASING and living in one’s own home is often referred to as “the great Australian dream”, but when it comes to ADF members purchasing their own home in a current posting location that dream can easily turn into a nightmare.

Generally speaking, ADF home owners are expected to occupy their own home – if it is considered to be a “suitable own home” in their posting location – and forgo their entitlement to a Service Residence (SR).

Members posted to an area where they have a suitable own home would be expected to occupy it unless “the home is subject to a residential tenancy agreement that was signed before the member was notified in writing of the posting, and the member makes reasonable efforts to obtain vacant possession of the home as soon as possible after being notified of that posting; or the CDF considers it unreasonable for the member to occupy the home,” according to PACMAN 7.1.2 (1) (a) and (b).

That seems reasonable. However, when it comes to purchasing a property in the same posting location and it is subject to a residential tenancy agreement, similar conditions do not apply.

The property would be considered as a suitable own home and the member would be expected to occupy it and face eviction from their SR three months after the date of purchase, or seven days after the property settlement, whichever occurs first.

The member may also lose their removal entitlement from the SR to their own home. Policy is unclear.

And, despite all best efforts, vacant possession or cessation of an existing tenancy arrangement may not be possible.

It seems ironic that the ADF assists members in purchasing their own home by access to (limited) Defence Home Loans, the Home Purchase Assistance Scheme and ongoing assistance through the Home Purchase and Sales Expense Allowance.

Yet, when it comes to a member purchasing a property in their current posting location, they could find themselves thrown on the street without a removal entitlement!

ADF members who occupy their own homes save Defence thousands of dollars.

Surely, it would not be unreasonable to further assist potential home buyers by allowing them to remain in their SR
(at market rent if need be) until they can take occupancy of the property purchased and preserve their removal entitlement.

 

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