DHOAS after leaving the ADF

The Act sets the loan limit for a separated member at 40% of the Average House Price whatever their service, and 80% once they have 20 years or more of effective service. Someone already receiving the subsidy must tell DVA they have separated, on a Change of Circumstances form. A lump sum received in the past 12 months, which was conditional on another year of service, may have to be paid back. The scheme names a delay in reporting a separation, while payments continue at a higher tier, as one cause of overpayments.

The last certificate is valid for 12 months with no way to extend it, and the scheme says it is one application rather than one certificate: a correctly completed application uses up the chance whatever the outcome. For someone no longer serving, the Act also ends a certificate as soon as they have no service credit left.

• Applying before leaving. The scheme notes that a member may apply for a certificate before separating, so that the one post-separation certificate is still there for later if it is needed.
• Building. With a construction loan drawn in stages, the scheme suggests a separated member may wish to wait until building is finished to use the certificate, so the subsidy is worked out on the largest possible balance.
• Changing the loan later. Selling, repaying, refinancing or increasing a DHOAS loan needs a new certificate to restart the subsidy. With none left, the subsidy stops and the rest of the entitlement is lost.

A Reservist who does not complete at least 20 days of paid service in a financial year is deemed separated from the ADF for DHOAS, with the same one-certificate limit. Every Reservist paid the subsidy during a year has their service reviewed before the end of that financial year, including those in the Standby or Inactive Reserve or on a Continuous Full-Time Service contract.

For anyone with less than 20 years of service, the tier is cut back to tier 1 for that year, after the event, and the overpayment has to be repaid even if the loan has since been closed. The scheme asks Reservists who do not expect to complete effective service to say so early, so payments can be adjusted before an overpayment builds up. A member transferring from the Permanent Forces to the Reserves needs at least 20 days of service in the financial year of the transfer, which can be Permanent, Reserve or both.

Someone medically separated on or after 1 July 2008 for a compensable condition, meaning one DVA has accepted liability for, may be eligible as what the scheme calls a DHOAS Incapacitated Member. The qualifying period does not apply to them.

Each credit is adjusted up for warlike service and down for any subsidy already received. The scheme’s supporting evidence is service records showing a medical transition, and the document stating the conditions that caused the separation, which in most cases is the DM042. A member still serving and receiving DVA compensation payments is not assessed as an Incapacitated Member until they medically separate. Where a final certificate has already been used and the home has to be sold because of the conditions that led to the separation, the scheme asks the person to talk to its customer service team, and the Act provides for a further certificate in some such cases.

When a member dies, in service or after leaving, the DHOAS benefits they were receiving or were eligible for may pass to their surviving partner. Defence’s manual says the same: the surviving partner may apply for the member’s benefit under the scheme. What happens next depends on the loan.

1. The partner is already on the subsidised loan

   Payments continue until the member’s credit is used up, the home is sold or the loan repaid, or a change to the loan or property stops them.

2. The partner is not on the loan

   Payments are suspended from the date of death until the title is transferred and the loan refinanced into the partner’s name. DVA, once told, works with the lender, then releases the suspended payments and restarts them.

3. The member was not yet receiving the subsidy

   The partner applies to DVA for a certificate as a surviving partner, takes out a DHOAS loan, and lodges a Subsidy Authorisation Request Form.

A surviving partner can apply for only one certificate, so if that loan is later closed or changed, or the conditions cannot be met, the remaining credit cannot be reached. The scheme advises speaking with DHOAS before changing the loan.

DHA says eligibility for a housing benefit ends on the date of separation or transition, and the property has to be vacated on or before that date. A request to stay on can be made, at least 28 days before the discharge date, but it is not automatic: DHA decides on housing availability and demand, and if it agrees, full market rent is paid in advance and a bond may be too.

Anyone who later rejoins the ADF meets the rejoining rules: a break of five years or less keeps earlier service for DHOAS, and a longer one does not. They are set out in the eligibility guide, and how the subsidy amount works is in the guide to what DHOAS is.