Wednesday, 19 February 2025

Help to Buy (Commonwealth Powers) Bill 2025

Statement of compatibility

Danny PEARSON (Essendon – Minister for Economic Growth and Jobs, Minister for Finance) (10:40): In accordance with the Charter of Human Rights and Responsibilities Act 2006, I table a statement of compatibility in relation to the Help to Buy (Commonwealth Powers) Bill 2025:

Opening paragraphs

In accordance with section 28 of the Charter of Human Rights and Responsibilities Act 2006 (Charter), I make this Statement of Compatibility with respect to the Help to Buy (Commonwealth Powers) Bill 2025 (the Bill).

In my opinion, the Bill, as introduced to the Legislative Assembly, is compatible with human rights as set out in the Charter. I base my opinion on the reasons outlined in this statement.

Overview

The Bill will adopt the primary and residual versions of the Help to Buy Act 2024 (Cth) (the Commonwealth Act) and refer the necessary legislative powers of the Victorian Parliament to the Commonwealth Parliament to the extent necessary to enable the Commonwealth’s Help to Buy scheme to operate in Victoria.

The Bill will enable the Commonwealth, through Housing Australia, to establish and administer the Help to Buy scheme in Victoria. The Help to Buy scheme is a shared equity scheme, which involves the provision of financial assistance to individuals from the Commonwealth, through Housing Australia, to assist those individuals to purchase a home. The Commonwealth Act will confer powers on Housing Australia to enter into shared equity arrangements for the purposes of the Help to Buy scheme, and is scheduled to the Bill.

The Bill also makes certain consequential amendments to the Duties Act 2000, the Land Tax Act 2005, and the First Home Owner Grant and Home Buyer Schemes Act 2000.

Human Rights Issues

For the following reasons, and having taken into account all relevant factors, I am satisfied that the Bill is compatible with the Charter and, if any rights are limited, the limitation is reasonable and able to be justified in a free and democratic society based on human dignity, equality and freedom in accordance with section 7(2) of the Charter.

The Charter does not apply to Commonwealth laws, so will not apply to the Commonwealth Act. I note a human rights assessment has been tabled in the Commonwealth Parliament, which found the Commonwealth Act is compatible with human rights and freedoms, and promotes the protection of human rights.

The Bill also makes consequential amendments to Victorian legislation, and in my view, compatibility with human rights should be an integral part of the consideration of the adoption of any Commonwealth law by the Victorian Parliament that will impact on Victorians, so the government has carefully considered the human rights impacts of the Bill.

The following rights under the Charter are relevant to the Bill: right to privacy (section 13), protection of families and children (section 17), and property rights (section 20).

Right to privacy (section 13 of the Charter)

Section 13 of the Charter states that a person has the right not to have their privacy, family, home or correspondence unlawfully or arbitrarily interfered with.

The Charter recognises that the right to privacy is only affected if the interference is unlawful or arbitrary. Section 13 therefore permits lawful and non-arbitrary interferences with a person’s privacy. An interference will generally be lawful where it is precise and appropriately prescribed in law; it will generally be arbitrary only where it is capricious, unpredictable, unjust, or unreasonable, in the sense of being disproportionate to some legitimate aim being sought. The Charter recognises that while an interference with privacy will engage the rights contained in section 13, it may still constitute a reasonable limitation on those rights.

The Bill amends section 50 of the First Home Owner Grant and Home Buyer Schemes Act 2000 (FHOG Act). This amendment enables a person subject to a duty of confidentiality under the FHOG Act to disclose certain information to the Chief Executive Officer of Housing Australia for the purpose of confirming whether an applicant or participant in the Help to Buy Scheme is an applicant or participant in a home buyer scheme under the FHOG Act.

Housing Australia requires this information to determine that person’s eligibility to participate in the Help to Buy scheme.

To the extent that the disclosure of information under the Bill may result in an interference with a person’s privacy, any such interference will be lawful and not arbitrary. The provisions that permit the disclosure of information are clearly set out in the Bill and are directly required for the purpose of ensuring that individuals are not approved to participate in both a Victorian home buyer scheme and the Commonwealth Help to Buy scheme.

Protection of families and children (section 17)

Section 17 of the Charter provides that families are the fundamental group unit of society and are entitled to be protected by society and the State, and every child has the right, without discrimination, to such protection as is in their best interests and is needed by them by reason of being a child.

This right is promoted by the Bill as it will support the establishment of a Commonwealth shared equity program that will create additional access to housing for Victorian low and middle-income households and families, including children.

Property rights (section 20)

Section 20 of the Charter provides that a person must not be deprived of his or her property other than in accordance with law. This right is not limited where there is a law which authorises a deprivation of property, and that law is adequately accessible, clear and certain, and sufficiently precise to enable a person to regulate their conduct.

The Bill, and the Commonwealth Act, will generally support individuals to purchase homes in Victoria via the Help to Buy scheme. However, once they own a home, the Commonwealth Act could enable their property rights to be impacted where there has been non-compliance with participation arrangements, and other related matters to the Help to Buy scheme. However, any deprivation of property in this context would be in accordance with law, and the law will be accessible, clear, certain and precise, so that individuals may regulate their conduct while participating in the Help to Buy scheme.

The. Hon Danny Pearson

Minister for Finance

Second reading

Danny PEARSON (Essendon – Minister for Economic Growth and Jobs, Minister for Finance) (10:40): I move:

That this bill be now read a second time.

I ask that my second-reading speech be incorporated into Hansard.

Incorporated speech as follows:

I am pleased to introduce this Bill, which will adopt the Commonwealth’s Help to Buy Act 2024 to enable the Commonwealth to deliver its shared equity scheme, Help to Buy, in Victoria. It also provides an amendment reference to the Commonwealth Parliament to enable future changes to Help to Buy so it does not become static legislation and can evolve over time.

The Help to Buy scheme will support around 10,000 low to middle income Victorian households over four years to fulfil their dream of becoming homeowners. For a two per cent deposit, Help to Buy will enable eligible Victorians to get into the housing market. The Commonwealth will contribute up to 30 per cent for an existing home, or up to 40 per cent of a new home, of the purchase price in return for a proportionate interest in the property. Victorians will benefit from a smaller deposit, lower mortgage repayments and avoiding the cost of Lenders Mortgage Insurance.

Our Government has long recognised the issue of housing affordability in Victoria, and more broadly in Australia. It is the reason this Government created the Victorian Homebuyer Fund in 2021 and announced our Government’s vision to deliver 800,000 dwellings over 10 years in Victoria’s Housing Statement in 2023. We have more recently announced a number of measures to assist more people into housing, such as allowing homeowners to build small second homes without a planning permit, introducing a new temporary off-the-plan land transfer duty concession and plans for 50 new activity centres around public transport hubs.

The Victorian Homebuyer Fund has been tremendously successful in reducing the capital outlay for many Victorians looking to purchase a home. The Victorian Homebuyer Fund has supported over 13,500 Victorians to become homeowners so far, with another 2,300 approved to purchase. In the 2024-25 Budget, the Government expanded the Victorian Homebuyer Fund again with a final $700 million investment to bring the total investment to $2.8 billion.

It is now time to pass the mantle onto the Commonwealth to support Victorians into homeownership and I welcome the Commonwealth establishing Help to Buy. Victoria is proud to enable access to Help to Buy in Victoria through adopting the Commonwealth’s legislation.

I commend the Bill to the house.

James NEWBURY (Brighton) (10:40): I move:

That debate be adjourned.

Motion agreed to and debate adjourned.

Ordered that debate be adjourned for two weeks. Debate adjourned until Wednesday 5 March.