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Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2008 (November)

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Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 20081
Defence Home Ownership Assistance Scheme Act 2008
I, WARREN SNOWDON, Minister for Defence Science and Personnel, make this Determination under subsections 52 (1) and 53 (1) of the Defence Home Ownership Assistance Scheme Act 2008.
Dated 24 November 2008
WARREN SNOWDON
Minister for Defence Science and Personnel
  
  
1              Name of Determination
                This Determination is the Defence Home Ownership Assistance Scheme (Average House Price and Median Interest Rate) Determination 2008.
2              Commencement
                This Determination is taken to have commenced on 1 July 2008.
3              Definitions
                In this Determination:
Act means the Defence Home Ownership Assistance Scheme Act 2008.
CANNEX means CANNEX (AUST) Pty Limited (ACN 053646165).
4              Average house price
                For subsection 52 (1) of the Act, the average house price for the
2008–2009 financial year is $467 897.
5              Median interest rate
         (1)   For section 53 of the Act, this section sets out a method for determining the median interest rate for a monthly authorisation period.
Step 1
         (2)   List and number, in ascending order of value, the annual interest rates published by CANNEX in relation to owner‑occupier standard variable home loans offered by lending institutions in Australia, at the authorisation day.
         (3)   If an interest rate of the same value is offered by more than one financial institution, list those institutions in alphabetical order.
Step 2
         (4)   If the list compiled under Step 1 contains an odd number of entries, determine the interest rate that is, numerically, the middle of the list.
Example
If a list contains 11 entries, the interest rate in the 6th entry in the list would be determined.
         (5)   If the list compiled under Step 1 contains an even number of entries:
                (a)    identify the 2 interest rates that are either side of the numerical middle of the list; and
               (b)    calculate the sum of the 2 interest rates identified under paragraph (a); and
                (c)    divide the sum calculated under paragraph (b) by 2.
Example
A list contains 12 entries. The interest rate in the 6th entry is 9.3%. The interest rate in the 7th entry is 9.5%. The interest rate identified under Step 2 would be 9.3% + 9.5% = 18.8%. Divide this sum by 2. The interest rate determined is 9.4%.
Step 3
         (6)   Divide the interest rate determined under Step 2 by 12.
         (7)   The result in Step 3 is the median interest rate for the monthly authorisation period.
Note
1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.