{"id":"F2018L01341","name":"Defence Service Homes (Hardship) Guidelines 2018","slug":"defence-service-homes-hardship-guidelines-2018","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":98021,"registerId":"commonwealth-F2018L01341-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Defence Service Homes Act 1918","sectionType":"part","heading":"Defence Service Homes Act 1918","content":"# Defence Service Homes Act 1918","sortOrder":0},{"sectionNumber":"Defence Service Homes (Hardship) Guideli","sectionType":"part","heading":"Defence Service Homes (Hardship) Guidelines 2018","content":"# Defence Service Homes (Hardship) Guidelines 2018","sortOrder":1},{"sectionNumber":"Instrument No. M13 of 2018","sectionType":"part","heading":"Instrument No. M13 of 2018","content":"# Instrument No. M13 of 2018\n\nI, Darren Chester, Minister for Veterans’ Affairs, under subsections 20(4), 21(3) and 23(6) of the Defence Service Homes Act 1918, approve these Guidelines.\n\nDated this 21st day of September 2018.\n\nD Chester\n\nDARREN CHESTER\n\nMinister for Veterans’ Affairs\n\n1. Name\n\nThese Guidelines are the Defence Service Homes (Hardship) Guidelines 2018.\n\n2. Commencement\n\nThese Guidelines commence on 1 October 2018.\n\n3. Authority\n\nThese Guidelines are made under subsections 20(4), 21(3) and 23(6) of the Defence Service Homes Act 1918.\n\n4. Definitions\n\nIn these Guidelines:\n\n> Act means the Defence Service Homes Act 1918.\n\ncommitments on the home means:\n\n(a) mortgage instalments; and\n\n(b) homeowner’s insurance; and\n\n(c) property rates, taxes, charges or other outgoings; and\n\n(d) body corporate or retirement village management and other fees; and\n\n(e) the instalments of a loan raised to pay for essential repairs; and\n\n(f) if the Secretary is satisfied that another financial commitment relating to a home is extraordinarily high and it is justified to include that other financial commitment as a commitment on the home – that other financial commitment.\n\nincome means:\n\n(a) salary or wages; and\n\n(b) any other income derived from employment, business or professional activities; and\n\n(c) any income derived from savings, property rentals or other investments; and\n\n(d) a pension or other payment made under a veterans’ affairs law; and\n\n(e) a pension or other payment made under the Social Security Act 1991; and\n\n(f) a workers compensation payment or similar payment; and\n\n(g) a superannuation payment or similar payment; and\n\n(h) if the Secretary is satisfied that another amount is income and it is justified to include that other amount as income – that other amount;\n\nbut does not include:\n\n(i) an allowance or payment for a dependent child; or\n\n(j) a contribution from a philanthropic organisation; or\n\n(k) board paid by an immediate family member living in the principal home.\n\n> Secretary means the Secretary of the Department of Veterans’ Affairs.\n\nveterans’ affairs law means an Act, or a provision of an Act, that in accordance with the Administrative Arrangements Order, is administered by the Minister for Veterans’ Affairs.\n\n5. Guidelines for financial hardship\n\nWhen deciding whether a person is suffering financial hardship for the purposes of section 20 or 23 of the Act, the Secretary is to have regard to:\n\n(a) the hardship factors set out in section 7; and\n\n(b) either:\n\n(i) in the case of a person who is partnered – whether the amount of weekly commitments on the home for the person’s and his or her partner’s principal home is more than 30% of their combined gross weekly income; or\n\n(ii) in the case of a person who is not partnered – whether the amount of weekly commitments on the home for his or her principal home is more than 30% of his or her gross weekly income.\n\n6. Guidelines for serious financial hardship\n\nWhen deciding whether a person is suffering serious financial hardship for the purposes of section 21 of the Act, the Secretary is to have regard to:\n\n(a) the hardship factors set out in section 7; and\n\n(b) either:\n\n(i) in the case of a person who is partnered – whether the amount of weekly commitments on the home for the person’s and his or her partner’s principal home exceeds their combined gross weekly income; or\n\n(ii) in the case of a person who is not partnered – whether the amount of weekly commitments on the home for his or her principal home exceeds his or her gross weekly income.\n\n7. Hardship factors\n\nEach of the following is a hardship factor:\n\n(a) in the case of a person who is partnered – whether the combined gross weekly income of the person and his or her partner is less than the average weekly earnings for an adult in full time employment in the State or Territory in Australia in which their principal home is located;\n\n(b) in the case of a person who is not partnered – whether his or her gross weekly income is less than the average weekly earnings for an adult in full time employment in the State or Territory in Australia in which the person’s principal home is located;\n\n(c) whether there are other avenues through which the amount of the commitments on the home could be reduced, such as negotiating with the lender for a reduction in instalments by extending the repayment term or by other means;\n\n(d) whether any attempts to obtain alternative financing have been successful;\n\n(e) any other factors that the Secretary considers relevant, including but not limited to a person’s health, employment situation, assets (other than the principal home) and financial commitments not relating to the principal home.","sortOrder":2}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"This is a straightforward delegated legislative instrument made under specific subsections of the Defence Service Homes Act 1918. It performs the standard function of operationalising the statutory terms 'financial hardship' and 'serious financial hardship' through quantifiable thresholds and discretionary factors. There is no indication of scope creep beyond the original statutory purpose of providing hardship relief for veterans' home loans."},"complexity_factors":["Short instrument: only 7 sections plus definitions","Simple mathematical thresholds (30% and 100% of income)","Minimal cross-referencing: only refers back to the parent Act (Defence Service Homes Act 1918) for enabling provisions and sections 20, 21, 23","Straightforward conditional logic: partnered vs non-partnered status creates two parallel tracks","8 defined terms in section 4, with two complex definitions ('commitments on the home' and 'income') that use inclusive lists with discretionary catch-all provisions ('if the Secretary is satisfied...')","No nested exceptions or sub-delegations","Clear structure: definitions, then two decision-making sections (5 and 6), then common hardship factors (7)"],"plain_english_summary":"These Guidelines tell the Department of Veterans’ Affairs when veterans with Defence Service Homes loans qualify for financial hardship help. They set a clear test: standard hardship if home-related costs exceed 30% of gross weekly income (or combined if partnered); serious hardship if those costs exceed total gross weekly income. The Secretary applies those thresholds plus individual hardship factors to decide relief."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"These Guidelines do not expand or restrict who is covered by the Defence Service Homes Act; they prescribe how the Secretary must assess \"financial hardship\" and \"serious financial hardship\" (see ss 5–7) and set definitional and evidentiary rules. The Guidelines do grant the Secretary discrete discretionary powers to include other amounts as income or commitments and to consider additional factors when satisfied it is justified (see s 4 and s 7(e)), but that discretion clarifies decision-making rather than changing statutory eligibility."},"complexity_factors":["Numeric threshold tests for hardship and serious hardship (weekly commitments >30% of gross income; commitments exceeding gross income) create simple but binding calculations (see Guidelines ss 5(b) and 6(b)).","Detailed definitions of 'income' and 'commitments on the home' list many income types and outgoings and also exclude certain payments, producing multiple verification points (see Definitions in s 4, income (a)-(h) and exclusions (i)-(k); 'commitments on the home' items (a)-(f)).","Discretionary inclusions allow the Secretary to treat other amounts as income or commitments if 'satisfied' it is justified, creating administrative judgment calls (see s 4 'if the Secretary is satisfied...' for both income and commitments).","Hardship assessment requires comparison to external statistics (State/Territory average weekly earnings), adding a data-dependence and potential updates/record-keeping requirement (see s 7(a)-(b)).","Hardship factors include qualitative elements—health, employment, assets, prior attempts to obtain finance and lender negotiation—which require case-by-case fact-finding and engagement with third parties (see s 7(c)-(e)).","The Guidelines operate by reference to the Act (ss 20, 21, 23) and so require administrators to interpret both instruments together, increasing cross‑instrument consistency demands (see Authority s 3)."],"plain_english_summary":"These Guidelines tell the Secretary how to decide if a Defence Service Homes borrower is suffering financial or serious financial hardship under the Act. They set numeric tests (housing commitments >30% of gross income for hardship; commitments exceeding gross income for serious hardship), define \"income\" and \"commitments on the home\", and list hardship factors to consider.\n\nThey affect Defence homeowners seeking loan relief: the Secretary decides eligibility, may include additional income or commitments, and uses state average earnings and other personal circumstances in assessments."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"}},"importantCases":[],"_links":{"self":"/api/acts/defence-service-homes-hardship-guidelines-2018","history":"/api/acts/defence-service-homes-hardship-guidelines-2018/history","analysis":"/api/acts/defence-service-homes-hardship-guidelines-2018/analysis","conflicts":"/api/acts/defence-service-homes-hardship-guidelines-2018/conflicts","importantCases":"/api/acts/defence-service-homes-hardship-guidelines-2018/important-cases","documents":"/api/acts/defence-service-homes-hardship-guidelines-2018/documents"}}