The Defence Home Ownership Assistance Scheme (DHOAS) helps ADF members and their families achieve home ownership through a subsidy payment. You will need to meet certain conditions to join the scheme.
To apply for a subsidised home loan, you will need a DHOAS Subsidy Certificate as proof of your eligibility.
You need a new certificate for each home loan granted.
Your subsidised home loan can be taken out with one of the following banks:
• Australian Military Bank
• Defence Bank
• National Australia Bank
Transitioning from the ADF changes your DHOAS entitlement in regards to accruing service credit, accessing additional subsidy certificates, and your eligible tier level.
You are encouraged to apply for a DHOAS Subsidy Certificate before transitioning because you can only apply for one last certificate through DVA after your transition date. You must use your certificate within 12 months from the date of issue. Reservists are eligible for DHOAS if you complete your minimum service requirements each financial year (usually 20 days).
Transferability
In the event of your death, any residual entitlement to the DHOAS may be fully transferable to your partner. No Fringe Benefit Tax (FBT) or Reportable Fringe Benefits Amount (RFBA) should be incurred by your partner. There are eligibility requirements and conditions, refer to the DHOAS website for further details.
Fringe Benefits Tax
Loan subsidy payments through the DHOAS may be considered a reportable fringe benefit under the Fringe Benefits Tax Assessment Act 1986. Defence may be required to pay Fringe Benefit Tax (FBT) on your DHOAS loan subsidy for up to 28 years after you separate from Defence. Payment of FBT by Defence may result in the grossed-up value, known as a Reportable Fringe Benefits Amount (RFBA) being reported on a MyGov Income Statement to the Australian Taxation Office for inclusion in your annual tax assessment.
Future rental of property receiving DHOAS loan subsidy
There are situations where a DHOAS loan subsidy may not be considered reportable for FBT purposes and therefore may no longer generate a RFBA. The most common situation is when the property to which the DHOAS loan subsidy relates is rented. If you rent your property, Defence should be made aware of this by submitting a Loan Subsidy Declaration form. The Defence Tax Management Office will send out emails to relevant personnel with instruction to complete the Loan Subsidy Declaration form. Once you have met the scheme conditions, renting out your property will not impact the amount of subsidy paid by Defence to your bank, but it may result in Defence not having to pay FBT. This may result in no RFBA being reported to the Australian Taxation Office on an Income Statement.
Once you have met the scheme conditions, renting out your property will not impact the amount of subsidy paid by Defence to your bank, but it may result in Defence not having to pay FBT. This may result in no RFBA being reported to the Australian Taxation Office on an Income Statement. To ensure applicable FBT and RFBA reductions are applied, it is important to keep your contact details up to date with Defence to ensure final Income Statements and Loan Subsidy Declaration forms can be sent to you after transitioning from Defence.