Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Hansard source

It's good to make a contribution to the debate on the Defence Home Ownership Assistance Scheme Amendment Bill 2022. I state at the outset that the coalition strongly supports the government's commitment to expand the Defence Home Ownership Assistance Scheme. The amendments to the bill are an additional incentive for recruitment in expanding the ADF and meeting existing recruitment targets. As we know and would expect initiatives like this can directly contribute to retaining skills and talent within the ADF, which is, as everyone would agree, critical in the current geopolitical climate. The coalition supports measures that will reduce the cost of living for currently serving and former ADF members. One other benefit is the fact that measures like this can improve the health and wellbeing of ADF members, both past and present.

Going to the details of the bill and what it will do, the bill will amend the eligibility criteria for the Defence Home Ownership Assistance Scheme, which will improve access to home ownership for Australian Defence Force members earlier in their defence careers and allow veterans to access the scheme any time after completion. In particular, it will reduce the qualifying service period for initial access to the DHOAS and minimum service periods for each subsidy tier so that eligible members and veterans are entitled to receive higher levels of subsidy payments sooner. It will also remove the existing five-year post-separation time frame to access the scheme.

The bill will also make other minor amendments to the Defence Home Ownership Assistance Scheme Act 2008: firstly, to create a power for the Secretary of Defence to declare that a subsidy-ceasing event did not occur if they are satisfied that all outstanding amounts due under a subsidised loan were not paid due to a genuine error, a mistake or an accident; and, secondly, to insert a recoverable payments mechanisms to address the risk of breaches of section 83 of the Constitution arising from payments purportedly made under the act in good faith in the bona fide administration of the act but not supported by the act.

Turning to the scheme, its background and history, the scheme was established in 2008 and provides eligible ADF members and veterans with a monthly subsidy payment on the interest portion of their mortgage payments for those who choose to purchase a home of their own to live in. The assistance is provided in response to the additional difficulties that ADF members, veterans and their families have in purchasing a home as a result of military service.

DHOAS sits within the portfolio responsibilities of the Department of Defence but is actually administered by the Department of Veterans' Affairs on behalf of the Department of Defence. The Department of Veterans' Affairs was consulted extensively on the development of this bill, based on information provided by the government. It's a retention initiative aimed at encouraging members to continue serving in the ADF. The scheme provides, as I stated, an incentive for members to stay in the ADF. The longer you serve, the more entitlement you accrue and the longer you can receive assistance.

To be able to access DHOAS, you need to have served in the ADF within the last five years, completed a qualifying period of service and accrued a service credit. For permanent members, the qualifying period is four consecutive years of service. For reservists, however, it is eight consecutive years of effective reserve service of at least 20 paid days per financial year. For all members, if there is a break in service, there needs to be a commencement once again. Continuous full-time service can fast-track reservists' qualifying periods.

The assistance provided by the scheme is not tied to a home loan with a specific value. Eligible banks are the Australian Military Bank, Defence Bank and the NAB. Changes to the act that administers the scheme came into effect from 22 June 2020. The amendments extended the time frame for ADF members leaving the ADF to access their final scheme subsidy certificate from two to five years. Those changes also ensure that members who leave the ADF and rejoin within five years will retain all service credit accrued prior to their break in service.

I've already stated that the coalition strongly supports the government's commitment to expand this scheme, the Defence Home Ownership Assistance Scheme. The coalition believe that, if young Australians are prepared to defend Australia, we should help them buy and establish a home. The amendments in this bill are an additional incentive for recruitment in expanding the ADF and meeting existing recruitment targets. Initiatives like this can directly contribute to retaining skills and talent within the ADF. Defence annual reports mention the conduct of surveys that identify DHOAS as a key factor in ADF retention, which is why these changes in this legislation from the government are so vitally important.

The coalition, of course—as you would expect of all parliamentarians in this place—supports measures that will reduce the cost of living for current serving and former ADF members. Measures like this, as I have already said, have an impact on the health and wellbeing of past and present ADF members. The ADF is currently facing significant challenges to recruit and retain its numbers and is, therefore, struggling to grow its workforce. So this bill, it's hoped, will improve the ADF's ability to recruit and retain. Housing and homeownership are critical factors that influence the health and welfare of ADF members and veterans.

Just in terms of some areas that were of concern to the coalition, there was at least perceived to be considerable risk that amendments in this bill may not achieve the intended outcomes being proposed. There's no statistical data that supports some of the presuppositions about the changes, but we will be watching quite closely the rollout of this scheme and the impact that it has.

With regard to increased separation rates, reducing the minimum service period for eligibility may well or could impact negatively on retention, with members separating once they reach the minimum eligibility criteria. The current minimum period of service for eligibility aligns with the initial minimum period of service and members' return of service obligations following their fully funded courses for recruitment, training and university education. Again, that's another matter we will be watching quite closely through the estimates process.

In terms of financial risk, there's a growing exponential cost associated with funding these amendments that runs into the forward estimates given the growth rate expected from amending and reducing the eligibility criteria. We have also expressed concern around the limited number of providers. It would be great to see that broadened out.

But, in broad terms, I think it's quite clear that this is a good piece of legislation. The coalition absolutely supports any measure that helps our Defence Force, its serving members past and present, to continue to make the contribution that they do with these added incentives and a degree of peace of mind around homeownership and the costs associated with it, particularly at a time when we are seeing mortgage interest rates increase to the extent they are. This will be welcome relief to current and past members of our ADF. On that basis, I've stated the coalition's position and I commend the bill.