First Home and Housing Construction Grants (Miscellaneous) Amendment Bill

Introduction and First Reading

Received from the House of Assembly and read a first time.

Second Reading

The Hon. R.I. LUCAS (Treasurer) (17:23): I move:

That this bill be now read a second time.

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

Leave granted.

The Bill implements the Commonwealth Government's HomeBuilder grant scheme in South Australia and incorporates amendments to the First Home and Housing Construction Grants Act 2000 (the FHOG Act) relating to objection and debt recovery provisions.

The Commonwealth HomeBuilder scheme provides grants of $25,000 to build a new home or substantially renovate an existing home, where the contract has been entered into between 4 June 2020 and 31 December 2020.

The Commonwealth Government are seeking States to administer the HomeBuilder grant scheme within their individual jurisdictions. The National Partnership Agreement on HomeBuilder has been developed to facilitate the implementation of the scheme.

The National Partnership Agreement on HomeBuilder requires jurisdictions to take reasonable steps to ensure the eligibility criteria has been met and that there are appropriate integrity measures in place including auditing and compliance processes. Where possible, States are requested to align these processes with existing arrangements for FHOG.

The FHOG is administered under the FHOG Act. The same Act has also been used to administer other housing assistance programs, such as the First Home Bonus Grant and the First Home Owners Boost, in South Australia.

Where possible, the relevant provisions of the FHOG Act will be extended to apply to, and in relation to, an application for a HomeBuilder grant as if it were an application for a FHOG, subject to modifications and exclusions prescribed by the regulations.

Where the provisions of the FHOG Act do not apply to a HomeBuilder grant, entitlement to the grant and the eligibility criteria will instead be determined by the Commissioner of State Taxation (and published on a website determined by the Commissioner) in accordance with the terms of the National Partnership Agreement on HomeBuilder.

The proposed amendments to the objection provisions of the FHOG Act will address a potential unfairness cited by Executive Member Stevens of the South Australian Civil and Administrative Tribunal in the matter of Anastasia Marinis v Commissioner of State Taxation (at paragraph 78, unreported) and ensure South Australia is aligned with all the other jurisdictions.

New South Wales, Victoria, Queensland, Western Australia, Tasmania and the Northern Territory all permit grant recipients to object to a decision to impose a penalty.

Payment of grants has ended in the Australian Capital Territory for transactions entered into after 30 June 2019. Notwithstanding, the Australian Capital Territory also permits grant recipients to object to a decision to impose a penalty.

The proposed amendments to the debt recovery provisions of the FHOG Act will address a technical anomaly and allow RevenueSA (and consequently the State of South Australia) to adequately protect its position, irrespective of whether a home has been completed on the property for which the grant was paid.

Without an amendment to the debt recovery provisions of the FHOG Act, RevenueSA's only option is to pursue relevant debts via criminal prosecution.

I also take this opportunity to thank the members of the Master Builders Association and the Housing Industry Association who took the time to meet with Department of Treasury and Finance, and RevenueSA and provide valuable feedback on the HomeBuilder grant.

I commend this Bill to the House.

Explanation of Clauses

Part 1—Preliminary

1—Short title

2—Commencement

3—Amendment provisions

These clauses are formal.

Part 2—Amendment of First Home and Housing Construction Grants Act 2000

4—Insertion of section 6A

This clause inserts a provision allowing the Act to apply to applications for HomeBuilder grants as if they were applications for first home owner grants (subject to modifications specified in the provision and any others prescribed by the regulations).

5—Amendment of section 25—Objections

This clause extends the objections provision to an applicant or former applicant who is dissatisfied with a decision of the Commissioner to impose a penalty under section 39(2) or (3).

6—Amendment of section 40—Power to recover amount paid in error etc

This clause substitutes a new section 40(3) so that the liability for an amount payable under section 40 will be a first charge on the applicant's interest in the land on which the home was built or was to be built (rather than referring to the applicant's interest in 'the home for which the first home owner grant was sought').

Schedule 1—Transitional provisions

1—Transitional provision

This transitional provision clarifies that an objection allowed by clause 5 of the measure may only be made in respect of a decision made after the commencement of that clause.

Debate adjourned on motion of Hon. I.K. Hunter.

At 17:24 the council adjourned until Wednesday 1 July 2020 at 14:15.