HPAS Explained
In this video, Robbie explains how the Home Purchase Assistance Scheme (HPAS) works and how ADF members can use this entitlement to help fund the purchase of their own home.
The Home Purchase Assistance Scheme (HPAS) is a valuable housing entitlement available to members of the Australian Defence Force. It provides financial assistance to help service members purchase a home while they are still actively serving in the ADF.
HPAS offers a one-off payment of approximately $17,000 before tax, which typically equates to around $10,000–$11,000 after tax depending on your tax bracket. This payment can be used to help cover the upfront costs associated with buying a home, such as the deposit, legal fees, or other purchase expenses.
To qualify for HPAS, the property must be located in the member’s current posting location, and the entitlement can only be used while the individual is still serving in the ADF. It is not available to veterans who have already discharged from service. The scheme can be used to purchase either an established home or a land-and-build property.
Timing is also important when applying for HPAS. Members must have at least 12 months remaining in their posting location at the time of signing the purchase contract, and the payment is generally processed within around 16 weeks of submitting the application.
When used strategically, HPAS can be combined with other benefits such as the First Home Owner Grant or personal savings to significantly reduce the upfront cost of buying a property while serving in the Defence Force.
Take the next step: Sign up for our free training seminars for ADF members and learn how to use your DHOAS, HPAS, and other Defence housing entitlements to build your financial future.
Learn more about the 2023 DHOAS expansion here.
Video Transcript
Robbie:
Hey, it’s Robbie from Axon Property Group. I just want to go through with you an awesome ADF housing entitlement. This one’s called HPAS.
Home Purchase Assistance Scheme. Let me run through it with you. It’s about $17,000 or so that you get in cash before tax.
Depending on your exact tax bracket, it’s going to be about 10 and a half, $11,000 afterwards. Most importantly, it’s for your own home purchase whilst in the ADF, so this is not for veterans. It must be in your posted location.
It can be for an established property, or you can go ahead and do a land and build as well. It’s payable only once per defence member. Remember to don’t pull the trigger on that like sucker too early then.
It’s normally paid within about 16 weeks of the application. So depending on the timing of your acquisition, your settlement, what your land registration might be, you can use it for your deposit, and you can sort of group it together with your first homeowner’s grant, et cetera. Now, this is really important from a timing and strategy perspective.
You must have 12 months tenure remaining in your posting location at the day of contract signing. You fit all that criteria, there’s 11 or so grand coming your way, and you can use it for your deposit and costs, and that’s how you use HPAS.