Commonwealth Numbered Acts

HOUSING ASSISTANCE ACT 1989 No. 7 of 1990 - SCHEDULE 1

                         SCHEDULE 1                           Section 4

FORM OF HOUSING AGREEMENT
AN AGREEMENT made the    day of One thousand nine hundred and     between-
THE COMMONWEALTH OF AUSTRALIA of the first part, THE STATE OF NEW SOUTH WALES
of the second part, THE STATE OF VICTORIA of the third part, THE STATE OF
QUEENSLAND of the fourth part, THE STATE OF WESTERN AUSTRALIA of the fifth
part, THE STATE OF SOUTH AUSTRALIA of the sixth part, THE STATE OF TASMANIA of
the seventh part, THE NORTHERN TERRITORY OF AUSTRALIA of the eighth part, and
THE AUSTRALIAN CAPITAL TERRITORY of the ninth part. WHEREAS: (A) the
Commonwealth and the States of Australia have from time to time entered into
agreements for the purpose of the provision by the States with financial
assistance from the Commonwealth of housing; (B) by an agreement between the
Commonwealth, the States of Australia and the Northern Territory of Australia
dated the twenty-fifth day of October 1984, being an agreement in the form
authorised to be executed on behalf of the Commonwealth by the
Housing Assistance Act 1984 of the Commonwealth Parliament and being the last
of the agreements referred to in Recital (A), provision was so made with
respect to the ten years commencing on the first day of July 1984; (C) the
Ministers of the respective governments throughout Australia who are
responsible for housing have agreed upon the provision of rental housing
assistance and home purchase assistance during the ten years commencing on the
first day of July 1989; (D) the primary principle of this agreement is to
ensure that every person in Australia has access to secure adequate and
appropriate housing at a price within his or her capacity to pay by seeking
to: . alleviate housing-related poverty; and . ensure that housing assistance
is, as far as possible, delivered equitably to persons resident in different
forms of housing tenure. In implementing this principle, assistance provided
under the agreement will also reflect the following detailed principles: (a)
Assistance Generally The primary consideration in delivering housing
assistance under this agreement shall be the needs of people. In determining
the eligibility of applicants for assistance under this agreement: .
assistance shall seek to provide access to housing for those unable to obtain
or maintain affordable finance for adequate and appropriate housing purchase
from the private sector or from other sources outside of the agreement; .
assistance provided shall be available to all sections of the community
irrespective of age, sex, marital status, race, religion, disability or life
situation. Persons who need support to live in the community shall be eligible
for assistance. It is recognised, however, that such support is not a
responsibility under this agreement; . priority in granting assistance shall
be determined by the need for assistance; . any limits on eligibility for
assistance shall be based primarily on financial circumstances. In determining
this, the level of income, the value of relevant assets and the income from
them, the number of dependent children and costs arising from disability or
other special circumstances, shall be taken into account; and . to ensure
consistency in the application of these eligibility principles, limits of
eligibility shall be reviewed at appropriate intervals of time. In the
delivery of housing assistance, as far as is possible, people should be given
an equal choice between the different forms of housing assistance programs
under this agreement. Housing assistance programs developed under this
agreement shall be designed so that maximum social benefit is derived from
previous investment in housing. Assistance shall be provided in a co-ordinated
and flexible manner to meet the changing employment and other needs and
circumstances of people receiving assistance. To this end and where
appropriate: . housing assistance provided under this agreement should be
co-ordinated with housing and accommodation assistance programs outside this
agreement; . the provision of assistance for people shall be co-ordinated
between the specific purpose programs within the agreement and general housing
assistance under the agreement; and . assistance shall facilitate the
portability of waiting times for applicants for assistance, and the transfer
of tenants, between regions and forms of assistance within a State, and, where
practicable, between States. (b) Rental Housing The provision of rental
housing is a key element of this agreement. People in rental housing shall
have security of tenure. Subject to fulfilment by the tenant of the tenancy
conditions, this principle of security of tenure shall operate in a State in
accordance with this Recital to ensure that: . tenants are not to be forced to
leave their home because of actions inconsistent with this agreement by a
State. Where a tenant is required to move from one dwelling to another by a
State, a choice of dwellings and locations appropriate to the tenant's needs
is to be provided; . a physical and locational environment appropriate to the
tenant's needs is provided; and . recognition is accorded to the rights of
applicants and tenants and other users of assistance. Programs and funding
arrangements under this agreement should seek to develop the public housing
sector as a viable and diversified form of housing choice and refrain from
discrimination. Programs and funding arrangements under this agreement shall
be developed so as to increase progressively the availability of rental
housing to a level commensurate with the need for it in the community. Rental
housing should reflect general community housing standards and should be
accessible to community and other services. Poor location of dwellings, an
inadequate range of choice of dwellings, and stigmatisation of the status of
rental housing tenants should be avoided to the maximum extent practicable.
Rental housing stock should, as far as possible, be designed to cater for the
needs and preferences of current and likely future applicants. The design,
style and siting of rental housing will, to the maximum extent practicable: .
reflect the need for access to employment opportunities and services; .
reflect the need for accessibility and suitability for habitation by people
with disabilities, Aboriginals, youth, the elderly or other identified groups;
and . support the energy conservation policies of the governments. (c) Income
Related Assistance to Tenants Assistance measures in the public rental sector
should be co-ordinated with assistance to private tenants and should recognise
the income support nature of the assistance and the inter-relationship of this
assistance with Commonwealth assistance to pensioners and other beneficiaries
under the Social Security Act 1947. (d) Implementation States will be able to
exercise maximum autonomy and flexibility in developing the administrative
arrangements necessary to achieve these principles; (E) the Ministers referred
to in Recital (C) recognise the relationship between the principles and
policies reflected in this agreement and the need to co-ordinate these with
those affecting home purchasers and tenants including tenants in private
housing and in emergency and supported accommodation; (F) it is proposed that
in order to implement the agreement of the Ministers, the Commonwealth will
grant to the States financial assistance under Section 96 of the Commonwealth
of Australia Constitution and like assistance to the Northern Territory of
Australia and the Australian Capital Territory and that the terms and
conditions on which the grant of financial assistance should be made are those
set out in this agreement; (G) the Commonwealth and the States have decided
that the agreement referred to in Recital (B) shall, save as provided for by
subclause 1 (3) of this agreement, cease to operate on and from the first day
of July 1989; and (H) the Parliament of the Commonwealth has authorised the
execution by and on behalf of the Commonwealth of this agreement and the
provision of financial assistance to the States in accordance with its
provisions. NOW IT IS HEREBY AGREED as follows:
PART I - OPERATION OF AGREEMENT
1 (1) This agreement shall be deemed to have come into effect on 1 July 1989
in respect of the Commonwealth and of a State when it is signed on behalf of
the Commonwealth, and: (a) where the laws of a State require that its
Parliament authorise the execution of, or approves, the agreement, when it has
been signed on behalf of the State with the authority of the Parliament of the
State or, having been signed on behalf of the State without that authority is
approved by the Parliament of the State; or (b) where the laws of the State do
not require that its Parliament authorise the execution of, or approve, the
agreement, when it has been signed on behalf of the State.
1 (2) Notwithstanding that in this agreement all the States are named as
parties, this agreement shall operate as an agreement between the Commonwealth
and the party or parties in respect of which it comes into force as fully and
effectually as if the party or parties in respect of which it comes into force
were the only party or parties so named other than the Commonwealth.
1 (3) Subject to obligations arising under Part VIII of the agreement referred
to in Recital (B) and unperformed prior to the first day of July 1989 that
agreement shall be deemed to have ceased to operate on and from that date.
PART II - PARTIES
2 (1) A reference in this agreement to a State shall, except where the
contrary intention appears and according to the requirements of the context,
be deemed to include a reference to the Northern Territory of Australia and to
the Australian Capital Territory.
2 (2) In this agreement, subject to this clause and except where the context
otherwise indicates - (a) "the Commonwealth" means the Commonwealth of
Australia; (b) each State, including the Northern Territory of Australia and
the Australian Capital Territory, named as a party in respect of which this
agreement comes into force is referred to as a "State" and, except where the
context otherwise indicates, "the States" means all of those States; and (c)
"the Australian Capital Territory" means the body politic established under
the Crown by that name by section 7 of the Australian  Capital Territory
(Self-Government) Act 1988 .
PART III - INTERPRETATION
3 (1) In this agreement - "the Minister" means the Minister of State of the
Commonwealth for the time being responsible for the administration of this
agreement for the Commonwealth; and "State Minister" means the Minister of
State of a State for the time being responsible for the administration of this
agreement for the relevant State.
3 (2) A reference in this agreement to -

   (a)  a Minister includes the Minister or other member of the Federal
        Executive Council; or

   (b)  a State Minister includes a Minister of the relevant State or other
        member of the State Executive Council,
acting on behalf of, or for the time being acting for, the Minister or
State Minister referred to.
4. In this agreement unless the contrary intention appears or the context
otherwise requires - "direct costs" means costs and fees generally accepted in
the private sector as related to the production or purchase of rental housing:

   (a)  including relevant overheads and administration costs; and

   (b)  excluding stamp duties of the State; "dwelling" means a dwelling-house
        or flat and includes such fences, outbuildings and other improvements
        and such connections for sewerage, drainage, water, electricity, gas
        and other services as are provided or are reasonably required to be
        provided for the dwelling-house or flat; "existing housing agreements"
        means both the agreements referred to in the first Schedule to the
        form of agreement scheduled to the Housing  Assistance Act 1984 and
        the agreement dated the twelfth day of March 1985 in the form
        scheduled to that Act ("the 1984 Agreement"); "Family Allowance
        Supplement" means the Family Allowance Supplement for which Part IX of
        the Social Security Act 1947 provides; "home purchaser" means -

   (a)  a person including a participant in a shared ownership scheme
        purchasing with assistance under Part VIII housing including rental
        housing; or

   (b)  a person who is a rental purchaser; "housing" means residential
        housing including dwellings and other forms of residential
        accommodation; "person" includes a body, co-operative, group or other
        organisation whether incorporated or not; "previous housing
        arrangements" means the provisions in relation to housing -

   (a)  that were made:

        (i)    by the existing housing agreements;

        (ii)   by the States Grants (Housing) Act 1971, the
               Housing Assistance Act  1973 , the Housing Assistance Act 1978,
               the States (Works and Housing)  Assistance Act 1982 , the
               States (Works and Housing) Assistance Act 1983, the Housing 
               Assistance Act 1984 , the States (Works and Housing) Assistance
               Acts 1984 and 1985, the Housing Assistance Amendment Act 1987
               and the States (Works and  Housing) Assistance Act 1988 ; and

        (iii)  under any arrangements entered into pursuant to the Special 
               Employment-related Programs Act 1982 ; and

   (b)  that are made by legislation passed hereafter by the Commonwealth
        Parliament under which financial assistance is made available to the
        State for housing, but on terms and conditions specified in this
        agreement; "rental housing" means housing for rental which has been
        provided under the previous housing arrangements or is provided under
        this agreement and "rental dwelling" means a dwelling that is included
        in rental housing; "rental purchase" means a purchase under a terms
        contract of sale; "rental purchaser" means a person purchasing under a
        terms contract of sale; "shared ownership" means the ownership of a
        share in a dwelling; "the Commonwealth Act" means the legislation of
        the Commonwealth Parliament by which an agreement substantially in
        this form is authorised to be executed by or on behalf of the
        Commonwealth; "upgrading" means improvements, excluding repairs and
        other maintenance, relating to a rental dwelling which is so
        identified in State housing authority published accounts; and "year"
        means a period of twelve months commencing on the first day of July.
5. In this agreement unless the contrary intention appears -

   (a)  a reference to a Part or to a clause is to a Part or to a clause of
        this agreement, as the case may be;

   (b)  a reference to a subclause is, unless otherwise indicated, to the
        relevant subclause of the clause in which the reference appears;

   (c)  the Schedule referred to is the Schedule to the agreement;

   (d)  words importing a gender include every other gender;

   (e)  words in the singular number include the plural and vice versa; and

   (f)  a reference to a date on or by which a thing is to be done shall, if
        that date falls on a Saturday, Sunday, public holiday or bank holiday
        in the place in which the thing is to be done, be read and construed
        as if the reference was to the day immediately preceding that day
        which is not a Saturday, Sunday, public holiday or bank holiday in
        that place.
PART IV - OBJECTIVE OF AGREEMENT
6. The objective of this agreement is the provision by the States, with
financial assistance from the Commonwealth, of housing assistance for rental
housing and for home purchase in accordance with, and in fulfilment of, the
principles set out in Recital (D).
PART V - FINANCIAL ASSISTANCE
7 (1) In order to assist the States in the achievement of the objective of
this agreement, the Commonwealth will, upon and subject to the provisions of
this agreement, out of moneys appropriated by Parliament for the purpose,
provide to the States during the years of this agreement, financial assistance
for housing purposes (hereinafter in this agreement referred to as "financial
assistance") by way of interest free non-repayable grants ("grants").
7 (2) The years of this agreement shall be the ten years commencing on the
first day of July in the years 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996,
1997 and 1998.
8. The Commonwealth will provide financial assistance: (a) in respect of the
first year of the agreement:

        (i)    to the States, excluding the Australian Capital Territory,
               totalling one thousand and ten million four hundred and four
               thousand dollars ($1010.404 million) consisting of:

   (a)  two hundred and thirty three million one hundred and fifty four
        thousand dollars ($233.154 million) by way of specific housing
        assistance under Part XII; and

   (b)  seven hundred and seventy seven million two hundred and fifty thousand
        dollars ($777.250 million) by way of untied assistance; and

   (ii) to the Australian Capital Territory, of seventeen million seven
        hundred and seventy two thousand dollars ($17.772 million) by way of
        specific housing assistance and untied assistance; and (b) in respect
        of each of the second year, the third year and the fourth year of the
        agreement:

        (i)    to the States, excluding the Australian Capital Territory,
               being an amount equal to the first amount specified in
               subparagraph 8 (a) (i); and

   (ii) to the Australian Capital Territory, being an amount equal to the
        amount specified in subparagraph 8 (a) (ii),
by way of specific housing assistance and untied assistance; and (c) in
respect of:

        (i)    any of the second year, the third year or the fourth year of
               the agreement for which the Minister determines additional
               financial assistance; and (ii) each of the remaining years of
               the agreement - an amount determined by the Minister for each
               of those years,
in writing signed by the Minister.
9. The Commonwealth may provide to the States out of moneys appropriated by
the Commonwealth Parliament for the purpose, financial assistance for home
purchase assistance, rental housing assistance and, in accordance with Part
XII, specific housing assistance. 10. In and for the purpose of this
agreement: (a) the following grants shall be known as "specific housing
assistance grants":

        (i)    financial assistance under sub-subparagraph 8 (a) (i) (a);

   (ii) so much of financial assistance provided under subparagraph 8 (a) (ii)
        as is authorised for expenditure under clause 30; and

        (iii)  so much of financial assistance provided under paragraph 8 (b)
               as is authorised for expenditure under clause 30; and

        (iv)   so much of other financial assistance authorised for
               expenditure under clause 30; and (b) financial assistance to be
               provided other than specific housing assistance grants shall be
               known as "untied assistance". 11. Financial assistance shall be
               allocated between the States in such manner as is provided by
               the Commonwealth Act and it shall be a condition with respect
               to the provision of untied assistance that a State will match
               the amount of that financial assistance from its own resources
               in accordance with Part VI. 12. A State shall, as agreed by the
               Minister and State Minister, include in material for use by
               persons seeking or receiving housing assistance from the State
               funded under this agreement, particulars to be provided by the
               Minister sufficient to indicate that that housing assistance is
               provided in whole or in part with financial assistance from the
               Commonwealth.
PART VI - STATE MATCHING FUNDS 13 (1) In relation to untied assistance a State
will provide from its own resources and apply funds ("matching funds") in
accordance with this Part. 13 (2) Subject to the subclause 13 (3), the amount
of matching funds to be provided in respect of a year in accordance with this
Part shall be an amount equal to the amount of untied assistance provided to
the State in respect of that year, determined as follows: (a) at least half
("grant matching funds") shall be grants paid by the State into the Rental
Capital Account; (b) the balance shall be met from the value of home loans
provided under Part VIII through home purchase assistance programs agreed
between the Minister and State Minister; and (c) an amount determined by the
Minister under paragraph 36 (b) shall be deemed to remain "untied assistance"
for the purpose of this Part. 13 (3) In respect of the first four years the
level of grant matching funds otherwise to be applied to the Rental Capital
Account will be phased in as follows: (a) in the first year the State will
match on a $3:$12 basis; (b) in the second year the State will match on a
$4:$12 basis; (c) in the third year the State will match on a $5:$12 basis;
and (d) in the fourth year the State will match on a $1:$2 basis. 13 (4) A
State may, as agreed by the Minister and State Minister, count as grant
matching funds in a year, amounts provided by it in the previous year in
accordance with paragraph 13 (2) (a) in excess of the level of matching funds
required in subclause 13 (3) for that year, up to a limit of 10 per cent of
the funds so required to be provided in that previous year. 13 (5) A State
will have to pay no more in matching funds relating to the first $1028.176
million of financial assistance provided: (a) in any of the years referred to
in subclause 13 (3) than would have been paid had the allocation and matching
fund requirements to apply for the said fourth year been applied in any of
those years; and (b) in any year than would have been required had the level
of untied assistance been $792.931 million. 13 (6) Except as to the first
year, for which proposals shall be agreed by the Minister and State Minister
by the thirty first day of December, a State shall, by the thirty first day of
March preceding the second and each succeeding year of this agreement, furnish
of the Commonwealth, in a reasonable form to be determined by the Minister
after consultation with the State Minister, proposals for agreement by the
Minister for the provision of matching funds during that year. 13 (7) Grant
matching funds shall be: (a) paid into the Rental Capital Account by regular
monthly instalments or as otherwise agreed between the Minister and
State Minister; and (b) separately identified in State budget documents or
otherwise identified as agreed between the Minister and State Minister. 13 (8)
Matching funds will not include: (a) funds which have been used to match
financial assistance provided by the Commonwealth otherwise than under this
agreement; (b) funds already paid into the Rental Capital Account; (c)
proceeds from the sale after the first day of July 1984 of rental housing and
land acquired under previous housing arrangements and this agreement (d) any
funds transferred from the Home Purchase Assistance Account to the Rental
Capital Account; or (e) surpluses generated on rental housing operations. 14.
Where a State in a year expends a specific housing assistance grant in
accordance with the Commonwealth/State plan for that year, this expenditure
shall not increase the level of matching funds required to be provided by that
State in that year.
PART VII - FINANCIAL ASSISTANCE ARRANGEMENTS 15 (1) Financial assistance in
respect of a year of this agreement shall be made available to a State during
that year by regular monthly instalments unless otherwise agreed between the
Minister and State Minister. 15 (2) If, following consultation with a State
Minister, the Minister is of the opinion that it is appropriate to do so, the
Minister may withhold a payment of financial assistance to a State which fails
to comply with subclause 13 (6), or clause 38 until the State remedies that
failure.
PART VIII - HOME PURCHASE ASSISTANCE 16. The Home Purchase Assistance Account
of each State, for the continuance of which clause 24 of the 1984 Agreement
provided, shall continue to operate. The Australian Capital Territory shall
open an Account by that name within the first year of this agreement. Each of
those Accounts and related Accounts are in this Part referred to as "the
Account" and elsewhere as "the Home Purchase Assistance Account". 17. This
Account shall be: (a) credited with:

        (i)    moneys received by the State in the course of home purchase
               assistance program operations;

   (ii) payments referred to in paragraph 23 (2) (f); and

        (iii)  any other funds, not being Commonwealth financial assistance or
               State grant matching funds, which the State decides to apply to
               home purchase assistance programs under this agreement; and (b)
               debited with management costs and other outgoings, including
               repayments and payments under paragraphs 20 (1) (a) and 20 (1)
               (b), in respect of home purchase assistance program operations.
               18. The money in this Account shall be made available for use
               for home purchase assistance in accordance with this Part. 19.
               A State shall develop and administer home purchase assistance
               programs, in accordance with Recital (D), having regard to the
               following principles: (a) the Account is to act as a basis and
               support for future home purchase. To this end a State shall
               ensure:

        (i)    funds made available for use under clause 18 are to be used in
               a way which at least maintains their real value; and

   (ii) that funds paid into the Account in accordance with paragraph 23 (2)
        (f) are included in funds available for use in subparagraph 19 (a)
        (i); and

        (iii)  that the amount of the funds available for use under paragraph
               19 (a) (i) are reduced by the payments made under subparagraph
               20 (1) (j); (b) the efficient use of the Account. To this end:

        (i)    a State shall maximise the use of funds from sources outside
               the agreement for loans to home purchasers;

   (ii) subsidy assistance is to be restricted to those who require it and for
        the period of their need and recovered except in cases of individual
        hardship. Where subsidy assistance is provided, the capacity of home
        purchasers to repay loans to the State is to be reviewed at least
        triennially with repayments to be adjusted or other action to be taken
        where necessary. In any year other than one in which there is a
        review, repayments are to be indexed by the Consumer Price Index or
        other appropriate indicator; and

        (iii)  where a State wishes to provide subsidy assistance other than
               in accordance with subparagraph (ii), it may do so from funds
               provided by the State under subparagraph 17 (a) (iii); (c) a
               State shall maximise the effectiveness of assistance provided.
               To this end:

        (i)    the amount of a loan shall take into account market conditions,
               including house prices, incomes and the size of a deposit; and

   (ii) loan repayments are to be related to the income of home purchasers,
        and to be affordable to those home purchasers. To this end, repayment
        ratios operating in the private market are to be taken into account. A
        State may reschedule repayments by a home purchaser in the event of
        individual hardship; (d) a State shall ensure maximum choice of
        assistance. To this end:

        (i)    no class of persons, including single persons, shall be
               excluded from consideration;

   (ii) home purchase schemes are to be accessible to existing public tenants;

        (iii)  where appropriate, shared ownership and rental purchase schemes
               are to be offered; and

        (iv)   schemes developed under this principle shall be consistent with
               the provisions in clause 27 of this agreement; and (e) home
               purchase assistance under the agreement is to be related to
               other home purchase assistance programs operated by the
               Commonwealth and States. 20 (1) Subject to subclause 20 (2), a
               State may use moneys in the Account in accordance with the
               principles set out in Recital (D) and clause 19 for: (a) making
               repayments of principal and payments of interest falling due in
               the then current year in respect of loan assistance by the
               Commonwealth to the State under previous housing arrangements
               which has been allocated for home purchase assistance under
               those arrangements; (b) making repayments of principal and
               payments of interest in respect of any State funds borrowed for
               the purpose of this Part allocated for home purchase
               assistance; (c) meeting expenditure by the State in providing
               and administering home purchase assistance; (d) facilitating
               borrowings of private bodies for home purchase assistance under
               this agreement, including participation in joint ventures and
               mortgage funds such as secondary mortgage market trusts; (e)
               making loans and grants to:

        (i)    terminating building societies or co-operative housing
               societies;

   (ii) a lending authority of the State approved by the State Minister;

        (iii)  registered co-operative organisations including permanent
               building societies approved by the State Minister;

        (iv)   such other class or classes of bodies or organisations as are
               from time to time agreed upon between the Minister and
               State Minister; and

   (v)  a class or classes of home purchasers,
for the provision of home purchase assistance; (f) financing the construction
and purchase of dwellings, including the purchase of dwellings from home
purchasers, and financing purchases by home purchasers who are borrowers; (g)
purchasing housing, including private housing, for sale to rental purchasers
and financing such sales; (h) the acquisition by the State of replacement
housing of a value equal to the amount for which the State sells rental
housing to home purchasers;

   (i)  urban renewal, housing advisory services and research and policy
        development in relation to matters not funded by the Australian
        Housing Research Council;

   (j)  making payments into the Rental Capital Account; (k) making loans to
        participants in shared ownership schemes; and

   (l)  such other purposes as are from time to time agreed upon by the
        Minister and State Minister. 20 (2) Moneys paid into the Account under
        paragraph 23 (2) (f) are to be used only for home purchase assistance
        programs approved by the Minister for public tenants and persons
        eligible for rental housing, with preference to be given to shared
        ownership schemes.
PART IX - RENTAL HOUSING ASSISTANCE 21. A State will establish a Rental
Capital Account (in this Part referred to as "the Account" and elsewhere as
"the Rental Capital Account") which shall be operated by the State in
accordance with this Part. All moneys in the Account are to be fully expended
or committed in the year in which they are credited to the Account. 22. A
State will pay into the Account: (a) in each year of this agreement:

        (i)    all untied assistance paid by the Commonwealth to the State
               under this agreement during that year;

   (ii) an amount of specific housing assistance grants as agreed by the
        Minister and State Minister;

        (iii)  grant matching funds;

        (iv)   such part of the cash surplus of revenue over outgoings arising
               from rental operations as is not applied to rental operations
               in accordance with clause 24;

   (v)  net proceeds from the sale after the first day of July 1989 of rental
        housing and land acquired under previous housing arrangements and the
        agreement referred to in Recital (B) or from the Account under this
        agreement;

        (vi)   State moneys which the State wishes to, and may consistently
               with this agreement, apply under clause 23 to activities
               referred to in this Part; and

   (vii) any other funds as agreed between the Minister and State Minister;
        and (b) additionally, in the first year of the agreement, such part of
        financial assistance and State matching funds provided under previous
        housing arrangements applied by the State to rental housing assistance
        as is unexpended at 1 July 1989. 23 (1) A State may use, in accordance
        with the principles set out in Recital (D) and the Commonwealth/State
        plan, moneys in the Account: (a) to meet the direct costs associated
        with the construction of rental housing; (b) to meet the costs of, and
        associated with, the acquisition, planning and development of land for
        rental housing development; (c) to make payments for, or provide
        bridging finance for, the provision of open space, landscaping,
        community facilities and for costs associated with land development,
        including contributions to headworks and reticulation of services,
        directly related to rental housing; (d) to make payments for the
        upgrading of rental housing; (e) to meet the direct costs associated
        with the purchase of housing for rental housing; (f) to engage in
        urban renewal activities related to rental housing; (g) to allocate
        funds to local government bodies for the construction or purchase of
        rental housing, where a State Minister considers it would be more
        appropriate for rental housing to be provided by those bodies; (h) to
        participate in joint ventures, co-operative enterprises or similar
        arrangements, other than those of an on-going or recurrent nature, for
        the provision of rental housing integrated with private housing to
        achieve a desirable socio-economic mixture;

   (i)  to meet the direct costs of construction or purchase of dwellings for
        rental to participants in shared ownership schemes, with both the
        schemes and the costs to be agreed by the Minister and State Minister,
        where it is not practicable to fund the construction or purchase for
        this purpose from funding sources outside this agreement; and

   (j)  to pay principal and interest falling due in a year on Commonwealth
        loans provided to the State under previous housing arrangements, the
        amount of the payments being phased in over three years with 50 per
        cent available in the first year, 75 per cent in the second year and
        100 per cent in the third year or as agreed by the Minister and
        State Minister, having regard to the cash surplus on rental
        operations. 23 (2) The Minister shall determine for a State in a year
        part of the Account as a general allowance, that part being an amount
        equal to 20 per cent, or as agreed between the Minister and
        State Minister, 25 per cent, of: (a) for the first three years of this
        agreement, the total of untied assistance and grant matching funds:

        (i)    that would be paid into the Account in the fourth year of the
               agreement if the total of untied assistance to all the States
               for that year remained at the total for the first year of this
               agreement; or

   (ii) that is paid into the Account in each of those years,
as the State Minister determines; and (b) for the fourth year and succeeding
years of this agreement, the total of untied assistance and grant matching
funds paid into the Account in each of those years, to be used by the State -
(c) to provide funds to such non-profit, charitable bodies, rental housing
cooperatives, voluntary bodies, local government bodies and other housing
management bodies or groups as are approved by the State Minister; (d) where
agreed by the Minister and State Minister:

        (i)    to lease;

   (ii) to subsidise leasing of; and

   (iii) to subsidise other arrangements not of a capital nature in relation
        to,
rental housing; (e) to provide rental subsidies for renting private housing
for those who are unable to obtain or maintain affordable finance for adequate
and appropriate housing purchase from the private sector or from other sources
outside of the agreement; (f) for payment into the Home Purchase Assistance
Account, up to the level of 15 per cent of the amounts referred to in
paragraphs 23 (2) (a) and 23 (2) (b); (g) to meet the costs associated with:

        (i)    the consulting referred to in subclause 28 (5); and

   (ii) the provision of information in accord with subclause 38 (6); or (h)
        for any other purposes agreed upon between the Minister and State
        Minister. 23 (3) Any part of the general allowance determined by the
        Minister under subclause 23 (2) for a State for a year which will not
        be fully expended or committed in that year for the purposes of that
        subclause shall be expended or committed in that year for the purposes
        of subclause 23 (1). 23 (4) Where in any year the general allowance
        determined by the Minister under subclause 23 (2) is not fully
        expended or committed in the year for which it was determined, the
        amount of the general allowance for the succeeding year shall be
        increased by the amount of the general allowance not so expended or
        committed in the previous year up to a maximum of one half of the
        general allowance for that year. If the amount by which the general
        allowance for the succeeding year is so increased is not fully
        expended or committed by the State in that year, entitlement to it
        shall lapse. 24. Any cash surplus of revenue over outgoings arising
        from rental operations in a year is to be applied to those operations
        or to the Rental Capital Account. 25. The conditions of eligibility of
        persons for rental housing assistance shall be determined by the State
        in accordance with the principles set out in Recital (D) and so that
        priority in granting assistance is determined by the need for
        assistance. No class of persons including the classes of single
        persons and of young persons shall be excluded from consideration. 26
        (1) In determining rents for rental housing in accordance with the
        principles set out in Recital (D), a State shall fix rents having
        regard primarily to the costs to the State of providing that housing
        and to the capacity of tenants to afford to pay. To this end: (a)
        where a State considers that a tenant has sufficient capacity to pay,
        the rent shall be not less than either that which would result from
        the application of the principles set out in the Schedule or market
        rent; and (b) in other cases, the rent shall be set in accord with the
        tenant's capacity to pay and to assist in the alleviation of poverty
        or hardship. 26 (2) In determining capacity to pay rent, a State
        shall: (a) have regard to the level of income, including income from
        assets of the tenant and other household members; (b) take into
        account the number of dependent children in the tenant's household;
        (c) ensure that tenants with similar capacity to pay, pay similar
        rents; (d) ensure that work disincentives are minimised; and (e) have
        regard, as agreed between the Minister and State Minister, to the
        receipt by any member of the tenant's household of Family Allowance
        Supplement. 26 (3) Rents are to be reviewed at least annually. 26 (4)
        Subclauses 26 (2) and 26 (3) and paragraph 26 (1) (b) are to come into
        effect from 1 July 1990 and paragraph 26 (1) (a) from the same date or
        progressively over a period of three years from that date if the State
        Minister so determines, unless the Minister and State Minister agree
        upon another period to take into account the level of rents prevailing
        in the private rental market. 27 (1) A State may sell rental housing,
        including that the subject of shared ownership or rental purchase, but
        such sales, if any, shall be in accordance with the principles set out
        in Recital (D) and subject to the following conditions: (a) all sales
        shall be made:

        (i)    in the case of a sale occurring within 5 years after the date
               of purchase or construction of the house, at a price at least
               equal to the replacement cost at the time of sale of the whole
               or the share of the dwelling sold; and

   (ii) in any other case, at a price equivalent to the market value or
        replacement cost at the time of the sale of the whole or the share of
        the dwelling sold,
provided however that:

        (iii)  the vendor may allow a credit to the tenant in respect of the
               value of improvements made by the tenant; and

        (iv)   the State may, if the Minister and State Minister agree, sell
               rental housing to a body, co-operative, group or other
               organisation which makes available rental housing under this
               agreement, at a price that is less than the value or cost
               stipulated in subparagraphs 27 (1) (a) (i) or 27 (1) (a) (ii);
               (b) in all sales of rental housing, the vendor is, at or prior
               to the date of the sale, to have received an amount calculated
               in accordance with paragraph 27 (1) (a); (c) in the case of a
               rental purchase, home purchase assistance funds may be used to
               enable the vendor to receive an amount referred to in paragraph
               27 (1) (b); and (d) net proceeds from sales of rental housing
               shall be used to construct or purchase replacement housing and
               associated land which is to be included in rental housing for
               the purpose of this agreement. 27 (2) A State shall ensure that
               if any body, co-operative, group or other organisation which
               acquires rental housing with rental housing assistance funds or
               acquires at other than market value or replacement cost rental
               housing from the State, sells, otherwise disposes of, or uses
               that housing for a purpose other than rental housing as
               provided for under this Part: (a) within five years of the date
               of purchase or construction of the housing by the State, it
               shall repay to the State an amount equal to what would be the
               net proceeds from a sale at replacement cost of the housing;
               and (b) thereafter, it shall repay to the State an amount equal
               to what would be the net proceeds from the sale, at market
               value or replacement cost, of that housing.
PART X - COMMONWEALTH/STATE HOUSING ASSISTANCE PLANS 28 (1) There shall be a
Commonwealth/State plan in accordance with Recital (D), agreed by the Minister
and State Minister, in respect of a State for each year of this agreement,
excluding the first year, setting out the provision of housing assistance
under this agreement. The plan shall have regard to the period and level of
funding provided under Parts V and VI of this agreement. In each year the plan
shall be agreed by the Minister and State Minister prior to the commencement
of the year to which the plan refers. 28 (2) Within the framework of the funds
available under Parts V and VI, and the operation of other Commonwealth and
State housing programs, each plan shall include: (a) an assessment of housing
need; (b) an assessment both of the resources available to provide programs of
assistance and of the assistance resulting from those programs. In assessing
the resources, regard shall be had to the effect of sales of rental housing
under this agreement; (c) allocation priorities and targets; (d) program
delivery priorities and targets including priorities and targets relating to
the provision of information under Part XV of this agreement; and (e) other
matters as agreed between the Minister and a State Minister. 28 (3) A State
shall draft for submission to the Joint Officers' Group the Commonwealth/State
plan on the basis of the broad content and framework of the plan agreed by the
Joint Officers' Group. This Group shall then consider and recommend the
Commonwealth/State plan to the Minister through the State Minister for their
mutual agreement. 28 (4) A Joint Officers' Group shall be established in
respect of a State, and shall comprise members drawn from: (a) the
Commonwealth; and (b) the State as nominated through the agency of the State
determined under clause 33. 28 (5) The Joint Officers' Group shall be
responsible for: (a) consulting with organisations relevant to the delivery of
public housing assistance; (b) developing and agreeing on the broad content
and framework of the Commonwealth/State plan, taking into account Commonwealth
and State priorities for rental housing assistance in that year; and (c)
considering the Commonwealth/State plan submitted to it by the State and
recommending the plan to the Minister and State Minister.
PART XI - USER RIGHTS AND PARTICIPATION 29. In implementation of the
principles set out in Recital (D) a State shall ensure that, by way of user
rights and participation: (a) applicants for, and recipients of, housing
assistance have access to:

        (i)    information about available housing assistance and its current
               policies on that assistance, tenancy conditions and appeal
               mechanisms. In providing this information, a State shall have
               particular regard to the special needs of people with limited
               abilities in relation to literacy, comprehension or command of
               English; and

   (ii) an independent appeal mechanism, agreed by the Minister and State
        Minister, from decisions as to the provision by the State of housing
        assistance funded under this agreement, which is to be in force by 31
        August 1990; and (b) persons in receipt of rental housing assistance
        have maximum opportunity to participate in the management of their
        dwellings and estates and in the development of public housing
        policies.
PART XII - SPECIFIC HOUSING ASSISTANCE 30. The Minister may in writing
authorise, subject to guidelines made consistently with this agreement and
agreed between the Minister and a State Minister relating to the following
programs including guidelines as to the provision of any funds by a State in
relation to each program, grants to a State for expenditure on: (a) rental
housing assistance for pensioners; (b) rental housing assistance for
Aboriginals; (c) mortgage and rent relief; (d) crisis accommodation; (e) local
government and community housing; and (f) any other program determined by the
Minister following consultation with a State. 31 (1) Rental housing provided
with grants for specific housing assistance may be sold by a State subject to
and in accordance with the provisions of clause 27. 31 (2) Unless otherwise
agreed by the Minister, the net proceeds of sale of rental housing provided
for a specific purpose or program with grants under this Part shall only be
applied to provide rental housing for the same purpose or program. 31 (3) This
clause shall apply to rental housing that has been provided from grants made
by the Commonwealth to a State under Part III of the Housing  Assistance Act
1978 or under Part XI of both the agreement made 23 December 1981, the
execution of which was authorised by the Housing Assistance Act  1981 , and
the 1984 Agreement respectively or under this Part of this agreement.
PART XIII - OBSERVANCE OF AGREEMENT 32. The Commonwealth shall provide for, or
secure the performance by it and its authorities of, the obligations of the
Commonwealth under this agreement and each of the States shall provide for, or
secure the performance by the State and its authorities of, the obligations of
the State under this agreement. 33. A State shall determine an agency or
agencies (including bodies or organisations that are not authorities of the
State) for the performance of this agreement on behalf of the State and acts
and things that are done by or with respect to the agency or agencies so
determined shall, for the purposes of this agreement, be deemed to have been
done by or with respect to the State. 34. If the Minister in writing informs
the State Minister that the Minister is satisfied the State has failed to
ensure that an amount of financial assistance provided to the State has been
applied for the purposes and in the manner provided for by this agreement with
respect to that financial assistance, the State will repay that amount or such
part of that amount as the Minister thinks reasonable to the Commonwealth. 35.
If a State fails for any reason to meet the requirements for the provision by
it of matching funds in accordance with Part VI or Part XII with respect to
any financial assistance that has been provided to it, the State will upon
request directed to the State Minister by the Minister in writing, repay to
the Commonwealth the amount of that financial assistance or so much of that
amount as is specified in the request. 36. If the Minister and a
State Minister cannot agree, in a year in which it is to be agreed, on
allocation or program delivery priorities and targets to be included in a
Commonwealth/State plan for the subsequent year, or if a State fails to apply
priorities or achieve targets included in a Commonwealth/State plan in respect
of a year, otherwise than because of matters beyond its control, the Minister
may, following consultation with the State Minister: (a) determine for the
subsequent year, an amount of untied assistance which is to be expended in
that year on priorities and targets determined by the Minister; or (b)
determine for the subsequent year, an amount which otherwise would be untied
assistance to become part of the specific housing assistance for that State
for that year.
PART XIV - TRIENNIAL EVALUATION 37. In accordance with the arrangements to be
agreed between the Minister and State Ministers, the operation of the
agreement is to be evaluated triennially.
PART XV - SUPPLY OF INFORMATION 38 (1) A State shall, not later than the
thirtieth day of November preceding the beginning of a year of this agreement,
provide the Minister in a reasonable form, determined by the Minister after
consultation with the State Minister: (a) estimates of the financial resources
and program outputs in respect of rental housing and home purchase assistance
programs for the year; (b) revised estimates of those financial resources and
program outputs for the then current year; and (c) final figures for those
financial resources and program outputs for the previous year. 38 (2) A State
shall furnish in respect of each year to the Commonwealth by the thirtieth day
of November occurring after that year and in a reasonable form to be
determined by the Minister after consultation with the State Minister: (a)
statements in respect of the operation of:

        (i)    the Rental Capital Account; and

   (ii) the Home Purchase Assistance Account; (b) statements which set out
        particulars of the expenditure during the year by the State of:

        (i)    amounts on home purchase assistance programs, being matching
               funds under paragraph 13 (2) (b); and

   (ii) grants for specific housing assistance; and (c) statements which set
        out:

        (i)    the manner in which the State has fixed rents in accordance
               with clause 26; and

   (ii) any cash surplus or deficit of revenue over outgoings arising from
        rental operations. 38 (3) A State shall publish an audited statement
        on the operation in each year of the Rental Capital Account no later
        than nine months after the conclusion of a year. 38 (4) The
        information to be included in a statement pursuant to subclause 38 (3)
        will be no less than that to be furnished to the Minister on the
        operation of the Rental Capital Account, pursuant to subclause 38 (2).
        38 (5) A statement furnished pursuant to subclause 38 (2) is to be
        certified as to its correctness by a person appointed by the State
        Minister for that purpose. 38 (6) A State shall provide in writing to
        the Commonwealth in respect of each year of this agreement by the
        thirtieth day of November occurring after that year such program and
        non-identifying client information as is reasonably requested by the
        Commonwealth to monitor achievement of the objectives of this
        agreement and allocation and program delivery priorities and targets
        identified in the Commonwealth/State plan. 38 (7) The Commonwealth and
        the State shall provide each other with information as agreed for
        program development and planning purposes.
PART XVI - VARIATION OF AGREEMENT 39 (1) The provisions of this agreement
other than the principles set out in Recital (D), Part IV, Part VI, Part X and
Part XI may be varied as between the Commonwealth and a State by agreement in
writing between the Minister and State Minister, but only after consultation
between the Minister and other State Ministers. 39 (2) A copy of an agreement
or copies of the documents which constitute an agreement under subclause 39
(1) shall be tabled in the Parliament of the Commonwealth and, where
necessary, of the State within 15 sitting days of respective Parliaments from
the date upon which the agreement is made. 39 (3) An agreement under subclause
39 (1) shall not affect the operation of this agreement as between the
Commonwealth and the States other than a State with which the agreement has
been made.
PART XVII - REPRESENTATION AND COMMUNICATIONS 40 (1) The Commonwealth shall,
subject to subclause 40 (2), be represented for the purposes of this agreement
by the Department of Community Services and Health and the Minister shall
notify State Ministers of the address of that Department and of any change at
any time of that address. 40 (2) In the event that the administration of this
agreement for the Commonwealth is allocated to a Minister other than a
Minister responsible for administering any part of the Department of Community
Services and Health, the Commonwealth shall be represented by the Department
administered by that other Minister and that Minister shall notify
State Ministers of the address of that Department. 41. Each State shall be
represented for the purposes of this agreement by the Department administered
by the State Minister or such other agency of the State as the State Minister
shall nominate ("Agency") and the State Minister shall notify the Minister of
the address of that Department or Agency and of any change at any time of the
Department or Agency or of the address. 42 (1) A notice or other communication
under or in connection with this agreement shall be duly given if it is in
writing signed by or on behalf of, or attributed to, the head of the
Department or Agency by which it is given and addressed to or delivered at the
address of the Department or Agency to which it is directed. 42 (2) For the
purpose of this clause writing includes a teleprinter message and the address
for such a message shall be the teleprinter address of the receiving
Department or Agency. 42 (3) A notice or other communications shall be given
under this clause when it is received in the appropriate form by the
Department or Agency to which it is directed.
                           THE SCHEDULE                       Clause 26

COST RENT PRINCIPLES The following principles are to be used to determine real
cost rents for rental housing. The principles are not to be applied to the
costs of individual dwellings but rather to the total cost pool of the rental
stock. In allocating the total cost pool to individual tenancies, a State will
have regard to variation in housing standards and locations within the
constraints of available administrative arrangements for assessing these
variations.
Recovery of operating expenses 1. The costs to be recovered in this respect
are ordinarily listed in the rental accounts of State housing authorities as
yearly expenditure items. These include: (a) administration; (b) rates; (c)
insurance; (d) specific operating expenses associated with particular types of
units; (e) annual maintenance; (f) yearly allowance for rent arrears and debts
written off; (g) yearly allowance for vacancies; (h) leasing expenses related
to land and dwellings;

   (i)  operating expenses of community facilities; and

   (j)  any other operating costs agreed between the Minister and a State
        Minister. Interest Charges 2. The costs to be recovered by the State
        include: (a) interest payable by a State on loan funds invested by it
        in rental housing; and (b) a notional amount of interest on all
        Commonwealth and State grants invested in rental housing from and
        including 1989-90. That notional amount of interest is to be
        calculated at a rate taken as equivalent to the assessed secondary
        market yields published by the Reserve Bank of Australia in periodical
        Statistical Bulletins for the last business day of June preceding the
        commencement of the year in which the grants are paid into the Rental
        Capital Account. Depreciation 3. An amount with respect to
        depreciation is to be included in costs to be recovered. To this end:
        (a) the depreciation rate is to reflect a life of between 40-75 years
        of the capital improvements on the land; (b) the value of capital
        improvement will be based on the estimated current capital improved
        value; and (c) the minimum annual depreciation rate will be not less
        than the rate resulting from a term of 75 years. IN WITNESS WHEREOF
        etc