Navigating Transactions with the Home Purchase or Sale Expenses Allowance(HPSEA)

Home Purchase

For military personnel, the process of buying or selling a home can be complex, especially when considering the financial aspects involved. Thankfully, the Home Purchase or Sale Expenses Allowance (HPSEA) exists to alleviate some of these burdens by offering reimbursements for certain expenses tied to home transactions.

Here’s a comprehensive breakdown of how HPSEA operates, covering both selling and buying a home, ensuring that Defence members make the most of this beneficial support system.

Selling a Home with HPSEA:

HPSEA serves as a reimbursement for costs associated with selling a home. This allowance comes into play once a member gets approval for the Home Purchase Assistance Scheme (HPAS) on their first home. Once a posting order is received, eligibility for claiming HPSEA upon selling the existing home is established.

Maintaining the ‘sell-buy-sell’ cycle, linked to postings, is crucial. Even if buying and selling don’t occur with every posting, keeping the claim cycle open necessitates meeting the eligibility criteria for both selling and buying within specific time limits.

Re-entering the ‘sale’ cycle is possible if it’s broken. Selling the current home upon receiving a posting order to a new location reignites the eligibility for making a claim.

Eligibility Criteria for Selling a Home:

To be eligible for claiming expenses upon selling a home, certain conditions must be met, such as residing in the home, relevance of sale costs to the new posting, previous benefits received under HPAS or HPSEA for home purchase, and signing a contract to sell within two years of receiving the posting order.

Exceptions and Time Limits:

Exceptions to the standard time limits for selling a home are applicable when posted to overseas or specified locations, adjacent postings, or locations requiring living-in accommodations. Contacting the ADF Delegations team is necessary before signing contracts in these circumstances.

Eligible Costs for Claiming:

Allowable costs for reimbursement include solicitor or broker fees, agent or auctioneer fees, and government duties or fees. However, costs related to staging, pre-sale inspections, or home maintenance are not covered.

Application Process for Selling a Home:

Using the AC970 form available on the Defence Protected Network (DPN), members can apply for HPSEA. Required documents include the posting order, settlement confirmation, mortgage release, and invoices or receipts for claimed payments.

Once the application is submitted through ServiceConnect or and approved, Defence processes the reimbursement through PMKeyS Self Service (PSS) on the next pay day.

Home Purchase with HPSEA:

Similar to selling, HPSEA also supports members in reimbursing costs associated with purchasing a home. Eligibility criteria revolve around residing in the home, previous benefits claimed for selling, and signing a contract within specific time frames.

Reimbursable Costs for Buying:

Reimbursable costs for buying a home include solicitor or conveyancer fees, broker fees, and government duties or fees. However, expenses related to surveys, council rates, utilities, or home improvements are not covered.

Application Process for Buying a Home:

Using the same AC970 form available on the DPN, members can apply for HPSEA for buying a home. Required documents include the posting order, signed and dated land/building contracts, settlement confirmation, and invoices/receipts for claimed payments.

Once the application is processed and approved, Defence facilitates the reimbursement through PMKeyS Self Service (PSS) on the subsequent pay day.

In Conclusion:

HPSEA serves as a valuable aid for Defence members navigating the complexities of home transactions. Whether selling or buying, understanding the eligibility criteria and allowable expenses is crucial in making the most of this support system.

Remember, thorough documentation and adherence to timelines are key in ensuring a smooth and successful reimbursement process. For further assistance or detailed information, reaching out to the ADF Delegations team or utilising Defence’s online platforms proves beneficial.

Buying or selling a home while serving in the Defence forces comes with its own set of challenges, but with HPSEA, financial support is readily available to assist members in this significant aspect of their lives.

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