Extract from Hansard [ASSEMBLY — Thursday, 19 September 2024]

p4846b-4847a Ms Rita Saffioti

[1]

KEYSTART BILL 2024

Introduction and First Reading

Bill introduced, on motion by Ms R. Saffioti (Treasurer), and read a first time.

Explanatory memorandum presented by the Treasurer.

Second Reading

MS R. SAFFIOTI (West Swan — Treasurer) [10.36 am]: I move —

That the bill be now read a second time.

That was quite an abrupt halt to that discussion; it is unlike the member for Willagee to run out of words!

Keystart is one of the key vehicles through which the state government achieves its objectives for housing policy. Keystart focuses on providing an affordable pathway into home ownership for Western Australians, having assisted more than 122 000 people to own their own home. Its low-deposit home loans enable households that have the capacity to service a mortgage but do not meet the deposit requirements of commercial lenders, or those who are unable to fund the cost of lenders mortgage insurance, to achieve home ownership. It is also a transitional lender, promoting and supporting customers to refinance through another lender when they are ready to do so.

Keystart’s current structure is different from most government trading enterprises that are established with their own enabling legislation. Keystart operates through a group of companies established under the commonwealth Corporations Act 2001 and a trust. It is governed by an independent board, with the Western Australian Housing Authority its sole shareholder. To ensure that Keystart can continue to fulfil its objectives into the future, this bill will establish Keystart as a statutory corporation with direct accountability to a minister, in line with the Government Trading Enterprises Act 2023. The application of the Government Trading Enterprises Act will mean that Keystart will operate under the same legislative governance as other GTEs, with clear ministerial oversight. The GTE act will provide Keystart with expectations of what information should be shared with government and articulate the role, responsibilities and accountabilities of the Keystart board.

Under this bill, Keystart’s current operations will continue and there will be no material changes for its existing customers. Keystart’s range of loan products—referred to in this bill as financial assistance products—and all existing customer loans will be transferred to the Keystart GTE through the making of a statutory transfer order. Keystart’s existing employees will also transfer to the new GTE on substantially the same terms and conditions via an offer and acceptance process.

The bill will also achieve administrative efficiencies by providing for the wind-up of the Country Housing Authority and the transfer of its existing loans to the new Keystart GTE. The authority currently has 180 loans on its books, and has issued only 11 loans in the last three financial years.

Mr P.J. RUNDLE: Madam Acting Speaker, I alert you to the state of the house. The ACTING SPEAKER (Ms M.M. Quirk): Quorum not present; ring the bells.

Visitors — St Damien’s Catholic Primary School The ACTING SPEAKER: While we are waiting, I think we have students from St Damien’s Catholic Primary School upstairs. Hello, and welcome to the Parliament! We are calling a quorum now, to get members in; there needs to be a certain number in here. But just because the members are not in here, it does not mean they are not working; they are all working very hard in their offices, and you have a very hardworking member in Lisa Munday.

Debate Resumed [Quorum formed.] Ms R. SAFFIOTI: Keystart currently administers the operations of the Country Housing Authority through a service agreement. The wind-up of the Country Housing Authority will achieve administrative efficiencies by removing the need for a separate board and reporting requirements for the relatively small number of existing loans in place. Although the Country Housing Act will be repealed, the bill will provide the Keystart GTE with functions that will enable it to continue to facilitate the provision of housing in rural areas. The bill will also provide the required functions and powers to ensure that Keystart can continue its important role in facilitating home ownership for Western Australians. These functions will allow new products to be developed as the housing market evolves and will enable Keystart to provide financial assistance to support new housing developments. Additional functions connected to housing can also be prescribed in regulations to provide flexibility for future activities to assist Western Australians with housing.

Extract from Hansard [ASSEMBLY — Thursday, 19 September 2024]

p4846b-4847a Ms Rita Saffioti

[2]

The existing Keystart group of companies and trust will continue to operate until all preparatory work for the transition is completed, with the aim that the Keystart GTE will commence operations on 1 July 2025. When the preparatory activities are completed, the transfer of the assets and liabilities of the existing Keystart and Country Housing Authority to the new Keystart GTE will occur predominantly by way of a statutory transfer order made under the bill. Following the statutory transfer order and the commencement of operations of the new Keystart GTE, the existing Keystart companies will be voluntarily deregistered and the Country Housing Authority will be wound up. This bill will fulfil the government’s commitment to enhancing Keystart’s role and ability to efficiently assist Western Australians in achieving their home ownership goals, and will provide mechanisms that the government can utilise to increase affordable housing supply. A significant amount of due diligence has occurred to ensure that the benefits of the bill and the changes to Keystart’s structure can be realised without impacting on Keystart’s operations or customers. Transitioning Keystart into a GTE through this bill will have the benefit of ensuring consistent treatment of Western Australian government–owned entities by holding Keystart to the same standards, under the same legislative and regulatory governance, as other GTEs. I would like to close by acknowledging the strong engagement of Keystart, policy agencies and central agencies in developing this bill, and the ongoing support that the Keystart board and its chief executive officer have provided throughout this process. I commend the bill to the house. Debate adjourned, on motion by Ms M.J. Davies.