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State Housing and Other Acts Amendment Bill 2002
STATE HOUSING AND OTHER ACTS
AMENDMENT BILL 2002
EXPLANATORY NOTES
SHORT TITLE
State Housing and Other Acts Amendment Bill 2002
GENERAL OUTLINE
Objective of the Legislation
The objective of the legislation is to amend the State Housing Act 1945,
the Local Government Act 1993 and the City of Brisbane Act 1924.
Objects of the Legislation
The State Housing Act 1945 establishes the Queensland Housing
Commission (the Commission) as a statutory body through which the State
delivers housing services. These services include housing loan products,
subsidised residential tenancies and community housing.
The primary object of the State Housing and Other Acts Amendment Bill
2002 is to implement recommendations arising from the National
Competition Policy review of the State Housing Act 1945.
The second purpose of the State Housing and Other Acts Amendment
Bill 2002 is to empower the Queensland Housing Commission to make
loans to residential service industry operators, for the purpose of
undertaking repairs and improvements, thereby enabling operators to meet
the registration and accreditation standards under the proposed Residential
Services (Accreditation) Bill 2002.
The third object of the State Housing and Other Acts Amendment Bill
2002 is to make minor amendments to the commercial leasing provisions
of the State Housing Act 1945.
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State Housing and Other Acts Amendment Bill 2002
The fourth and final object of the State Housing and Other Acts
Amendment Bill 2002 is to make minor amendments to correct existing
errors in the Act.
ACHIEVEMENT OF POLICY OBJECTIVES
The Bill contains provisions to achieve the primary object by amending
the State Housing Act 1945, the Local Government Act 1993 and the City
of Brisbane Act 1924. These amendments will place home buyers under
instalment contract home loan schemes with the Queensland Housing
Commission, and people who hold a share in a home which they have
purchased from the Commission, on the same footing as other home buyers
in relation to rates. At present the Commission remains the owner of these
homes until the home buyer fully pays for the home. This prevents local
governments from exercising a power of sale under the Local Government
Act 1993 in the event of default in payment of rates. The Rental Purchase
Plan (formerly H.O.M.E. Shared) and Contract of Sale Loan Schemes are
examples of such home ownership programs.
It is proposed that from 1 July 2002, the date of commencement of the
amendment, home buyers under these types of home loan schemes will be
deemed to be the owner of land for rating purposes. These changes will
mean that local governments will have the power of sale under the Local
Government Act 1993 in the event of default by the purchaser in payment
of rates incurred after 1 July 2002.
To achieve the second object, the Bill inserts a new Part 6D in the State
Housing Act 1945, empowering the Queensland Housing Commission to
make loans to residential service industry operators, for the purpose of
undertaking repairs and improvements to meet the registration and
accreditation standards under the proposed Residential Services
(Accreditation) Bill 2002.
The third object of the Bill is achieved by amendment of the commercial
leases provisions of the State Housing Act 1945. These amendments make
it clear that the Minister administering the State Housing Act 1945 is the
appropriate person to exercise the powers of the Minister under the Land
Act in so far as those powers apply to commercial leases issued under
section 22B of the State Housing Act 1945. The proposed amendment will
also validate approvals for dealings under section 22B given prior to the
date of the amendment.
Minor amendments correct existing minor errors in the State Housing
Act 1945, achieving the final object of the Bill.
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State Housing and Other Acts Amendment Bill 2002
ASSESSMENT OF ADMINISTRATIVE COST TO GOVERNMENT
It is anticipated that the administrative cost of the Bill to Government
will be minimal.
CONSISTENCY WITH FUNDAMENTAL LEGISLATIVE
PRINCIPLES
The Bill conforms with the fundamental legislative principles as defined
in section 4 of the Legislative Standards Act 1992.
The proposal to allow local governments rates to be levied directly on
properties being purchased under instalment contract type home loan
schemes with the Commission, or where people have purchased a share in
a property from the Commission under an instalment contract home loan
scheme, will not alter the obligation of those home buyers to pay rates.
However, it will allow local governments to recover rates directly from
these home buyers, including the power of sale in the event of default, by
local governments, whereas at present, only the Commission has this
entitlement.
Although this proposal will have a minor impact on the existing rights
and obligations of purchasers, it is not considered to be in breach of the
fundamental legislative principles set out in the Legislative Standards Act
1992. It is proposed that the amendments will apply to rates incurred after
the legislative amendments commence (proposed for 1 July 2002), as the
introduction of retrospective legislation would likely be in breach of the
fundamental legislative principles.
The proposed amendment to the commercial leases provisions in section
22B of the State Housing Act 1945 is considered to be procedural in nature
and will not adversely affect the rights of any lessee or sub-lessee under a
commercial State Perpetual Town Lease. This will bring the commercial
leases provisions of the State Housing Act 1945 into line with the existing
provisions of the State Housing Act 1945 relating to residential leases
under section 24. Accordingly, the amendment is not considered to be in
breach of the fundamental legislative principles set out in the Legislative
Standards Act 1992.
EXTENT OF CONSULTATION
Consultations in relation to the preparation of the Bill have been
conducted with representatives of the Department of the Premier and
Cabinet, Treasury Department, Department of Local Government and
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State Housing and Other Acts Amendment Bill 2002
Planning, Department of Natural Resources and Mines, Local Government
Association of Queensland, Education Queensland, Queensland Health,
Department of State Development, Department of Public Works,
Department of Families, Department of Aboriginal and Torres Strait
Islander Policy, Department of Primary Industries, Department of Tourism,
Racing and Fair Trading, Department of Emergency Services and the
Office of the Queensland Parliamentary Counsel.
NOTES ON PROVISIONS
PART 1--PRELIMINARY
Clause 1 sets out the short title.
Clause 2 provides that the commencement day for clause 4, clause 9 (so
far as it inserts proposed new section 50), part 3 and part 4 is 1 July 2002;
and that clauses 6 to 8 commence on assent or on the day part 2 of the
Residential Services (Accreditation) Act 2002 commences, whichever is the
later. The remaining provisions of the Bill commence on assent.
PART 2--AMENDMENT OF STATE HOUSING ACT 1945
Clause 3 states that part 2 of the Bill and the schedule amend the State
Housing Act 1945.
Clause 4 inserts new subsections into the existing Section 19
(Exemption from rating).
Section 19 of the Act provides that land vested in or occupied by the
Commission is not deemed to be rateable land within the meaning of the
Local Government Acts. Proposed subsection (2) of section 19 specifically
excludes land that is the subject of a section 24 (Power to commission to
sell houses to eligible persons) contract of sale, or land in which a person
has a share that the person bought under a section 24 contract, from the
operation of section 19.
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State Housing and Other Acts Amendment Bill 2002
Proposed subsection (3) of section 19 inserts a definition of section 24
contract, as a contract of sale entered into under section 24, under which--
(a) the purchasing price, other than the deposit, is payable in 2 or
more instalments; or
(b) the sale is of a share in a house and land.
Clause 5 amends section 22B (Provision of land for industry, trade or
business) of the Act. Section 22B deals with the provision of land, via
leases, for industry, trade or business. Clause 5(1) amends the application
of the Land Act to leases under section 22B.
Clause 5(2) proposes to insert a new subsection (2C) in section 22B to
provide that in respect of leases issued under section 22B, the Land Act
applies as if a reference in the Land Act to the Minister were a reference to
the Minister administering the State Housing Act 1945.
Clause 6 inserts a new Part 6D of the Act entitled "Advances to enable
conduct of residential services", inserting new sections 29S, 29T and 29U
in the State Housing Act 1945.
Proposed new section 29S inserts definitions of accreditation Act and
residential service in the State Housing Act 1945, which refer to the
proposed Residential Services (Accreditation) Act 2002.
Subsection (1) of new section 29T of the State Housing Act 1945
empowers the Commission to make loans to persons to help the person
meet the costs of building work carried out, or proposed to be carried out,
on premises if the Commission is satisfied that a residential service was
being conducted on the premises upon commencement of part 2 of the
accreditation Act, and that the purpose of the building work was or is to
enable a residential service to be conducted in the premises under the
accreditation Act.
Subsection (2) of proposed new section 29T of the State Housing Act
1945 provides that the loan is to be on the terms agreed between The
Commission and the person. Subsection (3) provides that a term of the loan
may provide for immediate repayment of the loan if the premises do not
become, or stop being, registered under the accreditation Act as premises in
which a residential service is being conducted.
Proposed new section 29U of the State Housing Act 1945 provides that
the schedule to that Act does not apply to advances under Part 6D.
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State Housing and Other Acts Amendment Bill 2002
Clause 7 provides for the insertion of a new subsection (4) in Section 30
(Advances to be secured by mortgage) of the State Housing Act 1945,
stating that section 30 does not apply to an advance under Part 6D.
Clause 8 amends section 32AB (Interest rates for certain advances and
contracts of sale) of the State Housing Act 1945. The amendment inserts a
new subsection (6) in section 32AB, to the effect that subsection (4) does
not apply to an advance under Part 6D.
Clause 9 inserts proposed new sections 49 and 50 in the State Housing
Act 1945.
Subsection (1) of new section 49 of the State Housing Act 1945 provides
that section 49 applies to anything done or purported to be done, during the
validation period, under a Land Act by the Minister administering the State
Housing Act 1945, in relation to leases under section 22B(2) of the State
Housing Act 1945.
Subsection (2) of new section 49 provides that if an action would have
been valid if it had been done by the Minister administering the Land Act,
the action is as valid as if it had been done by that Minister.
Subsection (3) of new section 49 of the State Housing Act 1945 inserts a
definition of Land Act, to mean the Land Act 1994, repealed Land Act 1962
or repealed Land Act 1910, or an Act amending any of those Acts; and a
definition of validation period to mean the period commencing when
section 22B of the State Housing Act 1945 commenced and ending the day
prior to assent of the State Housing and Other Acts Amendment Act 2002.
The proposed new section 50 of the State Housing Act 1945 is a
transitional provision relating to the amendment of section 19 (exemption
from rating). Subsection (1) makes it clear that a reference in section 19 to
a section 24 contract includes a section 24 contract entered into before 1
July 2002.
Subsection (2) provides that existing excluded land does not, because of
section 19(2), become rateable land for any time before 1 July 2002.
Subsection (3) provides definitions for the new section 50, defining the
commencement day as the day that section 19(2) commences (1 July 2002);
existing excluded land as land that is the subject of a section 24 contract
entered into before 1 July 2002, or land in which, on 1 July 2002, a person
has a share that the person bought under a section 24 contract; and rateable
land as rateable land under the Local Government Act 1993 or the City of
Brisbane Act 1924.
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State Housing and Other Acts Amendment Bill 2002
PART 3--AMENDMENT OF LOCAL GOVERNMENT
ACT 1993
Clause 10 provides that part 3 of the Bill amends the Local Government
Act 1993.
Clause 11 amends the definition of owner of land in section 4(1) of the
Local Government Act 1993 to include a purchaser of land under a housing
Act s24 contract, and a person who has a share in land that the person
bought under a housing Act s24 contract.
Clause 12 amends section 9 of the Local Government Act 1993 (Act
applies only so far as expressly provided), by amending the last dot point of
subsection (2) to include a reference to the new part 7 of the Local
Government Act 1993.
Clause 13 inserts a proposed new section 1057A in the Local
Government Act 1993. Subsection (1) provides that the proposed new
section 1057A applies if a local government intends to deal with land under
this part and the land is the subject of a housing Act s24 contract, or a
person has a share in the land that the person bought under a housing Act
s24 contract.
Subsection (2) of proposed new section 1057A of the Local Government
Act 1993 provides that the local government must give to the Commission
written notice of its intention to deal with the land before dealing with the
land.
Subsection (3) of proposed new section 1057A provides that the local
government may sell or acquire the land only on the conditions agreed with
the Commission for an agreed amount on account of the Commission's
interest in the land, and if the land is the subject of a housing Act s24
contract, amounts owing to the Commission under the contract.
Clause 14 inserts a new part 7 in the Local Government Act 1993,
containing proposed new sections 1269 and 1270.
Proposed new section 1269 provides that the new part 7 of the Local
Government Act 1993 applies to the Brisbane City Council.
Proposed new section 1270 of the Local Government Act 1993 applies to
rateable land that, on the commencement day, is the subject of a housing
Act s24 contract, or is land in which a person has a share that the person
bought under a housing Act s24 contract.
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State Housing and Other Acts Amendment Bill 2002
Subsection (2) of proposed new section 1270 provides that a reference in
section 1039 to an overdue rate does not include an overdue rate that was
levied on the land before the commencement day.
Subsection (3) of proposed new section 1270 provides a definition of
commencement day to mean the day that part 3 of the Bill commences,
namely 1 July 2002.
Clause 15 amends the schedule (dictionary) to the Local Government
Act 1993 by inserting a definition of housing Act s 24 contract to mean a
contract of sale entered into under the State Housing Act 1945, section 24,
under which the purchasing price, other than any deposit, is payable in 2 or
more instalments, or the sale is of a share in a house and land.
PART 4--AMENDMENT OF CITY OF BRISBANE ACT
1924
Clause 16 provides that part 4 of the Bill amends the City of Brisbane
Act 1924.
Clause 17 amends section 3A of the City of Brisbane Act 1924
(Application of the Local Government Act), by amending the last dot point
of subsection (2) to include a reference to the new part 7 of the Local
Government Act 1993.
SCHEDULE
The Schedule to the Bill contains three minor amendments of the State
Housing Act 1945, which are self explanatory.
© State of Queensland 2002