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First Home Saver Accounts Bill 2008

Part 1 Preliminary

Division 1 General

1   Short title

                   This Act may be cited as the First Home Saver Accounts Act 2008 .

2   Commencement

                   This Act commences on the day after it receives the Royal Assent.

3   General administration of Act

             (1)  The Commissioner has the general administration of the following provisions of this Act:

                     (a)  Part 3;

                     (b)  Part 4;

                     (c)  Part 5 (other than Subdivision B of Division 4);

                     (d)  Part 6.

             (2)  APRA has the general administration of the following provisions of this Act:

                     (a)  Subdivision B of Division 4 of Part 5;

                     (b)  Part 7 (subject to subsection (3).

             (3)  ASIC has the general administration of Division 2 of Part 7 of this Act, to the extent that section 6 of the Superannuation Industry (Supervision) Act 1993 (as that section applies under subsection 114(2) of this Act) confers powers and duties on ASIC.

4   Application of Act not to be excluded or modified

                   This Act applies in relation to an FHSA despite any provision in the terms and conditions of the FHSA, including any provision that purports to substitute, or has the effect of substituting, the provisions of the law of a State or Territory or of a foreign country for all or any of the provisions of this Act.

5   Act extends to external Territories

                   This Act extends to every external Territory.

6   Crown to be bound

             (1)  This Act binds the Crown in each of its capacities.

             (2)  This Act does not make the Crown liable to be prosecuted for an offence.



 

Division 2 Simplified outline

7   Simplified outline

                   The following is a simplified outline of this Act:

·          This Act provides for first home saver accounts, or FHSAs, to be offered by certain financial institutions.

·          It deals with who is eligible to hold an FHSA, limits on contributions to FHSAs and when payments can be made from an FHSA.

·          Provision is made for an annual Government contribution to be paid to an FHSA if certain conditions are met.

·          Payments from FHSAs are subject to conditions under this Act, such as a requirement to use a payment towards the purchase of a first home.

·          Failure to comply with the payment conditions can make a person liable to FHSA misuse tax under the Income Tax Assessment Act 1997 . The tax may also apply if the person holds an FHSA while ineligible to do so.

·          This Act also provides for the approval of entities that can offer FHSAs (other than ADIs and life insurance companies) and for the supervision of the FHSA business of those entities.

·          The general prudential supervision of ADIs and life insurance companies that offer FHSAs is not dealt with in this Act, but is dealt with instead under the Banking Act 1959 and the Life Insurance Act 1995 .

·          FHSAs are also subject to concessional treatment in respect of income tax and social security benefits. This treatment is similar to that of superannuation. It is not dealt with in this Act, but is dealt with instead under the Income Tax Assessment Act 1997 , the Social Security Act 1991 and the Veterans’ Entitlements Act 1986.