Senate Foreign Affairs, Defence and Trade Legislation Committee, , 1:38:04 to 1:45:00
Questions concerning the delay in announcing the new DOHAS lender panel and the inclusion of mortgage brokers in the scheme to improve member outcomes.
Topics: Social services, Procurement
Speakers: Celia Perkins, David Pocock, Unknown Speaker, Meghan Quinn
>> Keep going. >> Yeah. Um, I've got some some questions. Um, just following up from last estimates about the uh, defense home ownership assistance scheme.
have appropriate officers come to the table.
Um, hello Miss M. Perkins. Um, I was just concerned that I couldn't find any announcement of the successful tenderers for the new defense home ownership assistance scheme uh, lender panel. that the tender closed a year ago and was due to commence on 1 July this Why the delay and and when will the new panel be announced?
>> Uh thank you Senator for your question. Celia Perkins, Deputy Secretary Security and Estate. Uh yes Senator, as we discussed at the last hearing, we undertook an open tender process for the new panel. Um we went we have um we largely concluded that work. Now we are in the final uh stages of negotiating um the deeds of agreement to establish the panel. uh we extended the existing panel until December of this year to enable us to continue work with the successful tenderers and we are working uh with the relevant minister the minister for defense personnel to finalize those arrangements and we anticipate an announcement uh by the end of this year.
>> And why is it why is it running so far
Uh, Senator, it's not unusual in complex uh tender evaluations and negotiations against a number of providers uh for that to take a little longer. Sure. the existing panel did have the capacity for us to um undertake a an extension which we've done and I would say um as we're settling these arrangements uh we have been concerned with the new panel arrangements um to really uh negotiate through uh uh the the the measures of effectiveness and the um uh elements that we want to see to make sure we've got a good opportunity across the new panel um to keep delivering great outcomes for members.
>> I mean it strikes me as this is certainly not the most complex procurement defense um does. But I mean that aside uh how many additional providers uh on top of the the current um ones will be included.
>> Uh Senator until we've settled um um those negotiations and agreed uh there's a couple of regulatory uh uh elements that um the relevant minister needs to make. I'm not in a position to talk to
Perkins. So, so those negotiations haven't concluded. You haven't locked in any additional
>> We're in the final negotiations on the Dub agreements with the the preferred tender.
>> Um, are there any changes uh to the scheme design being contemplated to deliver a better deal for ADF personnel? It's >> um >> covered last time. It's a bit of a raw
Senator, um as we discussed last time, um the the Defense Home Ownership Assistance Scheme, um which is now supporting over 30,000 eligible and current members, uh is um legislated. Uh so the the essential um arrangements through the panel will be largely consistent with what those 30,000 members are currently experiencing. But as I said, part of the work we've been doing to settle the deed of agreements has been to strengthen the capacity uh for ourselves and the department of veterans affairs in the administration of the scheme uh to implement some of the policy changes that were uh worked through um over the last year or so um to expand eligibility, but also we're really keen uh to uh uh we already do very regular testing of the competitiveness of the scheme, but to increase the transparency around that increase uh our ability to share back to those 30,000 members um good information about the scheme and how to use it well uh and how to work with their homeline
>> Has defense assessed how many eligible members and veterans forego the subsidy because they can get a better deal
elsewhere? Uh, Senator, it would be very difficult for us um to assess the individual financial choices of members and veterans. What I can say is that over the last number of years, we've tracked um a year-by-year increase in people accessing DOHAS. Um, as I mentioned, we're about 30,471 members. Now, that's up over 3,000 um members in the last uh uh from 2024 25. Um and as I said, we're keen in the new panel um to really work hard on how we engage members uh uh using the scheme and veterans and uh those who uh might seek to use the scheme to understand its benefit to how to work with their home loan providers.
>> Okay. I mean, it would strike me if you're actually wanting to ensure that it is a better deal that you would find a way to track whether people think it's a better deal or they're just going to another bank. Um, under the the new uh lender panel, um the arrangements that you're negotiating, will you require participating banks um to make their products available through accredited mortgage brokers? Currently, I think it's it's only one of the three providers per um permit mortgage brokers.
>> Uh Senator, the design of the panel arrangements, as I've noted, uh in many ways is prescribed through the relevant legislation. Um I might take on notice the specific of that question because as I said, we're still in those final uh negotiations on the new deeds of
agreement. I mean, I don't think anything in the legislation precludes them allowing the use of mortgage brokers. Um I assume this has been raised with you as an issue through surely you could actually require them to allow mortgage brokers so that people can get a better deal.
>> Let me just make sure that I work with the team settling the agreement so that we've got the right answer for you. So, so the the legislation um doesn't allow mortgage brokers to um be part of the panel. You're right, though, how those how those home loan providers operate. I just don't have the specific details of where we've landed on that.
>> Okay. Thank you. Thank you, Chair.