Bills

Help to Buy (Commonwealth Powers) Bill

Introduction and First Reading

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Energy and Mining) (15:44): Obtained leave and introduced a bill for an act to adopt specified provisions of the Help to Buy Act 2024 of the commonwealth for the purposes of section 51(xxxvii) of the Constitution of the Commonwealth, to refer legislative power of the state in the form of an amendment reference to the parliament of the commonwealth to make amendments to the Help to Buy Act 2024 of the commonwealth for the purposes of section 51(xxxvii) of the constitution of the commonwealth, to make related amendments to various acts, and for other purposes. Read a first time.

Second Reading

The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Energy and Mining) (15:45): I move:

That this bill be now read a second time.

I seek leave to have the second reading explanation and explanation of clauses inserted in Hansard without my reading them.

Leave granted.

This bill seeks to adopt specific provisions of the commonwealth's Help to Buy Act 2024 to enable the delivery of the commonwealth government's Help to Buy shared equity homebuyer scheme in South Australia. The Help to Buy scheme will provide eligible homebuyers with a commonwealth government-funded shared equity contribution of up to 40 per cent of the purchase price for a new home or 30 per cent for an established home.

Support will be provided to a maximum of 40,000 applicants nationally over four years. If South Australia signs up to the scheme, around 2,700 of these places will be available to South Australian applicants. Signing up to the Help to Buy scheme will support a number of housing assistance initiatives currently being rolled out by the Malinauskas government.

Since coming to office, this government has committed $3 billion in budget funding for housing related projects. The 2025-26 budget committed $552 million to directly support the construction of around 2,935 new homes and help vulnerable South Australians find secure housing. This builds on the 2024-25 budget, which saw the removal of the property value thresholds for first home stamp duty relief as well as the property value cap for the First Home Owner Grant. This means an eligible first-home buyer can now access stamp duty relief and the First Home Owner Grant irrespective of the property value.

The South Australian government is also delivering the Housing Roadmap, a consolidated plan that includes initiatives aimed at supporting significant land rezonings, investing in the required water and wastewater infrastructure and reforming the state's planning system to fast-track development approvals. The Help to Buy scheme will complement this work. The scheme is expected to open for applications later this financial year and will be administered by Housing Australia on behalf of the commonwealth government.

Among other eligibility criteria, applicants will need to provide a minimum deposit of just 2 per cent, be purchasing a new or established home priced at up to $900,000 in the Adelaide metropolitan area or up to $500,000 in the rest of the state, and have a gross income of not more than $100,000 for single applicants and $160,000 for joint applicants.

This bill supports the implementation of the Help to Buy scheme in South Australia by referring legislative powers relating to the operation of the scheme to the commonwealth parliament. The bill also includes:

amendments to relevant state legislation to ensure South Australian participants in the Help to Buy scheme are treated consistently with other homebuyers for taxation and homebuyer assistance purposes; and

provisions allowing for South Australia to withdraw from the scheme at any time.

Participating in Help to Buy will not prevent South Australia from implementing new state-based assistance schemes in the future, nor will it affect the operation of existing homebuyer assistance schemes such as the Shared Equity Option administered by HomeStart Finance or the Rent to Buy scheme administered by the South Australian Housing Trust. This scheme, combined with our state-based initiatives, will support home ownership for low and middle income earners, helping South Australians and the economy to thrive. I commend this bill to the house.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

These clauses are formal.

3—Interpretation

This clause defines certain words and expressions used in the Bill.

Part 2—Adoption of versions of the Commonwealth Help to Buy Act

4—Adoption

This clause provides for the primary version and residual version of the Commonwealth Act to be adopted under section 51 (xxxvii) of the Constitution of the Commonwealth. Subclause (1) provides for the separate and independent adoptions of the primary version and residual version of the Commonwealth Act. Subclause (2) provides that the operation of each paragraph in subclause (1) does not affect the operation of the other paragraph. Subclause (3) provides for the period of operation of any adoption under subclause (1). The Bill has been structured with 2 separate adoptions to provide flexibility to choose how the State participates in the Help to Buy program in the future and to align with the drafting of the Commonwealth Act. In particular, the Governor may choose to terminate the adoption of the primary version and retain the operation in the State of the adoption of the residual version as set out in clause 7 of the Bill. In this circumstance, Housing Australia can continue to administer existing shared equity arrangements but cannot enter into any new such arrangements in SA.

5—Commonwealth laws not otherwise affected

This clause provides that the State Parliament intends that the Commonwealth Act may be expressly amended or have its operation otherwise affected at any time after commencement of clause 4 by either or both—

a provision of a Commonwealth Act the operation of which is based on a legislative power of the Commonwealth Parliament other than as provided under the amendment reference; and

a provision of an instrument made under the Commonwealth Act, or a Commonwealth Act the operation of which is based on a legislative power of the Commonwealth Parliament other than as provided under the amendment reference.

6—Amendment reference

This clause refers limited and specific power to the Commonwealth Parliament to enact the matters to which the amendment matters (as defined in clause 3 of the Bill) apply only to the extent of making laws with respect to those matters by making express amendments (as defined in clauses 34(4) and 34(5) of the Commonwealth Act) (amendment reference). This is to ensure there is a limited and specific flexibility for the Commonwealth Parliament to make amendments to the Commonwealth Act.

Subclause (2) provides that the amendment reference does not include the making of a law that would have the effect of—

giving Housing Australia, after a State stops being a participating State, the function of entering into, or the power to enter into, shared equity arrangements that relate to residential property located in the State. This is so a State can choose to stop new participants entering into the Help to Buy program within the State if it were to terminate its adoption of the primary version of the Commonwealth Act for any reason;

substantively removing or overriding a provision of the Commonwealth Act that requires approval of the State before certain things are done, or sections 41, 41A or 42 of the Commonwealth Act. This is so that the Commonwealth Parliament cannot make amendments to the Commonwealth Act that undermine key protections for a State as set out in those provisions.

Subclause (3) limits the extent to which the references under subclause (1) apply to only—

where the matter is not included in the legislative powers of the Parliament of the Commonwealth (otherwise than by a reference for the purposes of section 51(xxxvii) of the Constitution of the Commonwealth); and

the matter is included in the legislative powers of the Parliament of the State.

Subclause (4) provides for the period of operation of any reference under subclause (1).

7—Termination of adoption and amendment reference

This clause deals with the termination of the adoptions specified under clause 4 and amendment reference specified under clause 6 (namely, the period ending on a day fixed by the Governor by proclamation).

Subclause (1) enables the Governor, at any time, by proclamation published in the Gazette, to fix a day on which any or all of the adoptions specified in clause 4, or the amendment reference in clause 6 is to terminate. There are not intended to be any limits on the reasons for the exercise of this power by the Governor.

Subclause (2) sets out that the Governor may repeal a proclamation in the Gazette published under subclause (1), and it is to be taken to have never been made and published. There are not intended to be any limits on the reasons for the exercise of this power by the Governor.

Subclause (3) provides that a repealing proclamation made under subclause (2) must be made and published before the day fixed by the Governor under subclause (1) for the repeal to be effective.

Subclause (4) sets out that the repeal of a proclamation does not prevent the making and publication of further proclamations under subclause (1).

The intent of this clause is to provide a mechanism to protect the State's interests in the event that the State no longer wishes the Commonwealth to have the power to legislate with respect to any of the adoptions or the reference.

8—Effect of termination of amendment reference before termination of adoption of primary version or residual version

This clause deals with the effect of termination of the amendment reference before the termination of the adoption of the primary version or the residual version of the Commonwealth Act.

Subclause (1) provides that if the amendment reference terminates before the adoption of the primary version is terminated, the termination does not affect laws made by the Commonwealth Parliament prior to the termination, or the continued operation in the State of the Commonwealth Act as in force before the termination (subject to any amendments that had been enacted but were not yet in operation, or any amendments permitted as described in clause 5).

Subclause (2) provides that if the amendment reference terminates, it continues to have effect as set out in subclause (1), unless the adoption of the primary version is terminated.

Subclause (3) provides that if the amendment reference terminates before the adoption of the residual version is terminated, the termination of the amendment reference does not affect laws made by the Commonwealth Parliament prior to the termination, or the continued operation in the State of the Commonwealth Act as in force before the termination (subject to any amendments that had been enacted but were not yet in operation, or any amendments permitted as described in clause 5).

Subclause (4) provides that if the amendment reference terminates, it continues to have effect as set out in subclause (3), unless the adoption of the residual version is terminated.

Part 3—Miscellaneous

9—Declaring certain matters to be excluded matters

This clause provides that the listed matters are declared to be excluded matters for the purposes of section 41A of the Commonwealth Act in relation to the Help to Buy program. The intent of this provision is to ensure that in the event of an inconsistency between a State scheme and the Help to Buy program, the State scheme will take precedence over the Help to Buy program except to the extent prescribed by any regulations made under the Commonwealth Act. This declaration of the excluded matters will only apply to the extent—

necessary to ensure that no inconsistency arises between the Help to Buy program and the excluded matter; and

that it is not possible for there to be concurrent operation between the Help to Buy program and the State scheme.

10—State's objection to matters

This clause provides for the Minister's power to object to regulations or legislative instruments being made under the Commonwealth Act.

Subclause (1) provides that for the purposes of section 46(1) of the Commonwealth Act, the Minister may object to a matter for the purposes of the Commonwealth Act by notice given to the Commonwealth Minister during either the minimum consultation period or the extended consultation period. Subclause (2) requires the Minister to publish a notice referred to in subclause (1) in the Gazette.

Subclause (3) provides a notice under subclause (1) is intended to constitute the State's objection to a matter for the purposes of the Commonwealth Act.

Subclause (4) provides the Minister may withdraw an objection to a matter given under subclause (1) by notice to the Commonwealth Minister and subclause (5) requires the Minister to publish a notice referred to in subclause (4) in the Gazette as soon as practicable. Subclause (6) provides a notice under subclause (4) is taken as constituting the State's withdrawal of an objection to a matter for the purposes of the Commonwealth Act.

Subclause (7) provides that for the purposes of section 46(4) of the Commonwealth Act, the Minister may give notice to the Commonwealth Minister during the minimum consultation period that the State requires an additional 15 business days to consider a matter for the purposes of the Commonwealth Act. The intent of this provision is to clarify how the power given to the State in relation to the process for States to object to proposed regulations and other legislative instruments in section 46 of the Commonwealth Act should be exercised by the State. After giving notice to the Commonwealth Minister under subclause (7), subclause (8) provides that the Minister must publish a notice referred to in subclause (7) in the Gazette and provides the extended consultation period applies for the purposes of giving the notice to the Commonwealth Minister under subclause (1).

Subclause (9) provides that failure to publish a notice given to the Commonwealth Minister under subclause (1), (4) or (7) in the Gazette does not affect the validity of the notice.

Subclause (10) defines Commonwealth Minister for the purposes of this clause to mean the Minister referred to in section 46 of the Commonwealth Act.

11—Regulations

This is a regulation making power.

Schedule 1—Related amendments

The Schedule makes related amendments to the following Acts:

Emergency Services Funding Act 1998

First Home and Housing Construction Grants Act 2000

Land Tax Act 1936

Stamp Duties Act 1923

Taxation Administration Act 1996.

Debate adjourned on motion of Mr Batty.