Allowable Uses of Assets and Available FAllowable Uses of Assets and Available Funds

Allowable Uses of Assets and Available Funds

4(18) For the purposes of subclauses 4(17), 4(19), 4(21), 4(22), 4(23) and 4(24), assets include those funded under Previous Housing Arrangements and under this Agreement.

4(19) Assets and available funds for the period of an agreed Bilateral Agreement, being Commonwealth Financial Assistance and State funding contributions and any net income earned from the use of assets including net proceeds of any asset sales and other asset realisations, can only be used in accordance with that Bilateral Agreement for the following purposes:

(a) to address housing need, in accordance with the principles outlined in subclause 1(1);

(b) to establish and maintain the viability of housing providers funded under this Agreement or Previous Housing Arrangements, including the retirement of debt that has been used to fund housing assistance in accordance with this Agreement or in accordance with Previous Housing Arrangements;

(c) to provide appropriately for asset management in accordance with the principles specified in subclause 1(1);

(d) to provide funds or transfer assets to non-government organisations and local government for the purpose of providing housing assistance in accordance with the principles specified in subclause 1(1);

(e) to provide subsidies for consumers who receive housing assistance, including home purchase assistance, in accordance with this Agreement or in accordance with Previous Housing Arrangements;

(f) to conduct research, advocacy, consumer participation, information dissemination activities, and other like activities pursuant to this Agreement; and

(g) any other housing-related use as agreed between the Minister and a State Minister.

4(20) The Allowable Uses of funds outlined in subclause 4(19) do not include meeting those parts of any costs of providing housing assistance that may be attributable to obligations arising from the operation of a Tax Equivalent Regime, where that would involve a net reduction in funds available for housing assistance.

4(21) At any time covered by this Agreement, where a Bilateral Agreement has yet to be agreed in accordance with subclause 6(1)(a), assets can only be used for the purpose of supporting the provision of housing assistance in accordance with Previous Housing Arrangements.

4(22) At any time covered by this Agreement, where a Bilateral Agreement has been agreed in accordance with subclause 6(1)(a), assets can only be used for the purpose of supporting the provision of housing assistance in accordance with that Bilateral Agreement.

4(23) In relation to any State where it is agreed in a Bilateral Agreement that assets or available funds will be used to support Home Purchase Assistance programs, the management of those programs shall conform to Prudential Standards and Capital Adequacy Requirements that are consistent with banking standards and the underlying risks of the programs.