Housing (Freeholding of Land) Regulation 2006

1Short title

This regulation may be cited as the Housing (Freeholding of Land) Regulation 2006.

2Commencement

This regulation commences on 1 July 2006.

3The declared percentage

For section 3A(2)(b) of the Act, the declared percentage must be—

(a)if the equitable percentage is more than 0% but not more than 60%—60%; or

(b)if the equitable percentage is more than 60% but not more than 74%—equal to the equitable percentage; or

(c)if the equitable percentage is more than 74% but not more than 100%—75%; or

(d)if the equitable percentage is more than 100%—the equitable percentage minus 25%, up to a maximum of 100%.

4Calculating the equitable percentage

For section 3, the equitable percentage is the percentage calculated, to 2 decimal places, using the following formula—

where—

A means the annual land rental percentage equal to—

(a)if a percentage is prescribed under a regulation for the Housing Act 2003, section 136—the prescribed percentage; or

(b)otherwise—3%.

B means the capital indexed Commonwealth bond real yield rate, issued by the Reserve Bank of Australia, for bonds with a maturity date of—

(a)if the declared percentage is declared before 30 September 2007—August 2015; or

(b)if the declared percentage is declared after 30 September 2007—August 2020.

Editor’s note—

Capital indexed Commonwealth bond real yield rates may be viewed on the Reserve Bank of Australia’s website at <www.rba.gov.au/Statistics/indicative.html>.

EP means the equitable percentage.

Example—

If A is 3% and the capital indexed Commonwealth bond real yield rate is 2.5%, the equitable percentage would be 120%.