Help to Buy Program Directions 2025
25The Commonwealth share and Commonwealth share percentage
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25 The Commonwealth share and Commonwealth share percentage
(1) Housing Australia must ensure that each arrangement provides for the Commonwealth share and Commonwealth share percentage to be determined and adjusted in accordance with this section.
Note: The definition of “shared equity arrangement” in subsection 7(1) of the Act allows return entitlements to be worked out either in whole or in part by reference to the value of the relevant property at one or more times. The effect of this section is that an arrangement must create a return entitlement that is worked out wholly by reference to the value of the relevant property.
(2) The Commonwealth share, in relation to a relevant property:
(a) means the return to which the Commonwealth is entitled under the arrangement in respect of that property; and
(b) is expressed as a percentage of the value of the relevant property from time to time, where the percentage (the Commonwealth share percentage) is:
(i) unless adjusted as set out in subsections (3) and (4)—the agreed percentage (see section 16); and
(ii) if adjusted as set out in subsections (3) and (4)—the agreed percentage as adjusted.
Note: Because the value of the relevant property will change from time to time, the precise monetary value of the Commonwealth share will also vary depending on the time at which it is calculated. This will be the case even if the Commonwealth share percentage itself has not been adjusted.
Example: If the Commonwealth share is 20% of the value of a relevant property, and the property, at a particular time, is valued at $600,000, the monetary value of the Commonwealth share at that time is $120,000.
Adjustments to the Commonwealth share percentage
(3) Housing Australia must ensure that each arrangement must allow Housing Australia, on or after settlement, to increase the Commonwealth share percentage without making further financial contributions:
(a) in the circumstances mentioned in column 1 of an item of the following table; and
(b) as set out in column 2 of that item.
| Column 1 | Column 2 | |
|---|---|---|
| Item | Circumstances | Amount by which Commonwealth share percentage may be increased |
| 1 | Where the value of the relevant property, as assessed by the participating lender for the purpose of settlement, is lower than the purchase price | To a percentage that preserves what would have been the value of the Commonwealth share on the date of settlement, had the value of the property at that date been equal to the purchase price |