Nick Xenophon (SA, Independent) Share this | Hansard source

My question is to Senator Wong, the Minister representing the Treasurer. The Australian Office of Financial Management administers a scheme for residential mortgage backed securities which provides access to funds at a lower interest rate than financial institutions would otherwise be able to access for home lending. The scheme is intended to assist financial institutions other than the four major banks to offer competitive home loans. Last year Aussie Home Loans entered into discussions with the AOFM to secure these funds; however, at the eleventh hour, Aussie Home Loans was rejected, purportedly on the basis that it is a subsidiary of the Commonwealth Bank. However, the Commonwealth Bank only has a 33 per cent shareholding in Aussie Home Loans and Aussie is a private company; the Aussie shareholding will always outvote the CBA’s. On what basis does the AOFM evaluate ‘subsidiary’ given that in legal and business terms a subsidiary involves at least a 51 per cent shareholding?