Section 1138 — Social Security Act 1991: Existence of debt results in charge over real assets

Person not member of a couple (1) If a person who is not a member of a couple is participating in the home equity access scheme, the person’s real assets are subject to a charge in favour of the Commonwealth to secure the payment of the debt to the Commonwealth. Person member of a couple (2) If: (a) a person who is a member of a couple is participating in the home equity access scheme; and (b) the person’s partner has signed the person’s request under subsection 1136(2); the couple’s real assets are subject to a charge in favour of the Commonwealth to secure the payment of a debt to the Commonwealth. (3) If: (a) the home equity access scheme ceases to operate in relation to a person because of the effect of section 1141, 1141A, 1141B or 1142; and (b) at the time the scheme ceases to operate, the person owes a debt to the Commonwealth because of the person’s participation in the scheme; the charge in favour of the Commonwealth under subsection (1) or (2) of this section continues in relation to the real assets until the debt is repaid or recovered. Note 1: Section 1141 provides that a person ceases to participate in the scheme if the debt owed by the person exceeds the maximum loan available. Note 1A: Section 1141A provides that the scheme ceases to operate in relation to a person if the Secretary is satisfied that the person ceases to be qualified to participate in the scheme and the Secretary determines that the scheme ceases to operate in relation to the person. Note 1B: Section 1141B provides that the scheme ceases to operate in relation to a person if the person starts to receive service pension or income support supplement. Note 2: Section 1142 provides for a person to withdraw from the scheme. (4) This section does not apply if subparagraph 1133(1)(d)(ii) or (2)(d)(ii) applied to the person when the person made his or her request to participate in the home equity access scheme.