Title First Home Saver Accounts Bill 2008
Database Bills & Legislation
Long Title a Bill for an Act to provide for first home saver accounts, and for related purposes
Date 28-05-2008
Source House of Reps
Parl No. 42
Bill Number 08109
Bill Type Government
Portfolio Treasurer's portfolio
Reps Bill Code M
Status Act
System Id legislation/bills/r3002_act/0001


First Home Saver Accounts Bill 2008

 

 

 

 

 

 

First Home Saver Accounts Act 2008

 

No. 44, 2008

 

 

 

 

 

An Act to provide for first home saver accounts, and for related purposes

  

  

  


Contents

Part 1—Preliminary                                                                                                               1

Division 1—General                                                                                                      1

1............ Short title............................................................................................ 1

2............ Commencement.................................................................................. 2

3............ General administration of Act............................................................ 2

4............ Application of Act not to be excluded or modified............................ 2

5............ Act extends to external Territories..................................................... 2

6............ Crown to be bound............................................................................. 2

Division 2—Simplified outline                                                                                  4

7............ Simplified outline................................................................................ 4

Part 2—Key concepts and other definitions                                                            6

Division 1—Key concepts                                                                                          6

8............ Meaning of FHSA............................................................................... 6

9............ Meanings of hold and FHSA holder................................................... 6

10.......... Meanings of provide and FHSA provider.......................................... 6

11.......... Meanings of Government FHSA contribution and personal FHSA contribution     7

12.......... Meaning of qualifying interest in a dwelling....................................... 8

13.......... Meaning of main residence................................................................. 9

14.......... Meaning of FHSA home acquisition payment..................................... 9

15.......... Meaning of FHSA eligibility requirements.......................................... 9

16.......... Meaning of FHSA ineligibility payment............................................ 10

17.......... Meaning of FHSA payment conditions............................................. 10

Division 2—Other definitions                                                                                13

18.......... Definitions........................................................................................ 13

Part 3—Eligibility, contribution and payment rules                                           19

Division 1—Eligibility rules                                                                                    19

19.......... Obligation of FHSA provider in opening or issuing FHSA.............. 19

20.......... FHSA holder must notify provider if he or she does not satisfy the FHSA eligibility requirements     20

21.......... Commissioner must notify provider if reason to believe that certain circumstances exist      21

22.......... FHSA provider to close inactive FHSA........................................... 21

23.......... Inactive FHSA.................................................................................. 22

24.......... Default superannuation plan............................................................ 23

Division 2—Contributions to FHSAs                                                                 25

25.......... Limit on contributions to FHSAs—account holder aged 65 or over 25

26.......... Limit on contributions to FHSAs—inactive FHSA......................... 25

27.......... Limit on contributions to FHSAs—holder in breach of account balance cap          26

28.......... Breach of account balance cap.......................................................... 27

29.......... Account balance cap......................................................................... 28

30.......... Indexation of account balance cap.................................................... 28

Division 3—Restrictions on payments from FHSAs                                  30

31.......... FHSA provider must not make payment from FHSA unless authorised by law etc.             30

Division 4—Requirements to make payments from FHSAs                 32

32.......... Payment from FHSA for purposes of acquiring a home.................. 32

33.......... Payment from FHSA if FHSA holder aged 60 or over..................... 33

34.......... Payment of FHSA balance as contribution to superannuation........ 33

35.......... Payment of FHSA balance as transfer to another FHSA................. 34

Part 4—Government FHSA contributions                                                              35

Division 1—Eligibility for and amount of a Government FHSA contribution     35

36.......... Whether a Government FHSA contribution is payable................... 35

37.......... Notification of eligibility status........................................................ 35

38.......... Amount of Government FHSA contribution................................... 36

39.......... Government FHSA contribution threshold...................................... 36

40.......... Indexation of Government FHSA contribution threshold................ 36

Division 2—Payment of Government FHSA contribution                      38

41.......... Commissioner’s determinations....................................................... 38

42.......... Payment of Government FHSA contribution.................................. 38

43.......... Providers to return Government FHSA contribution in certain circumstances       39

44.......... Government FHSA contribution increased by interest amount if paid late in certain circumstances     40

45.......... Commissioner to notify if Government FHSA contribution paid... 40

Division 3—Underpayments of Government FHSA contribution       41

46.......... Underpayment determinations......................................................... 41

47.......... Providers to return underpaid amounts in certain circumstances..... 42

48.......... Government FHSA contribution increased by interest amount if underpaid amount paid late in certain circumstances.......................................................................................................... 42

49.......... Small underpayments paid by cheque.............................................. 43

Division 4—Overpayments of Government FHSA contribution         44

50.......... Recovery of overpayments.............................................................. 44

51.......... Small overpayments......................................................................... 46

Part 5—Administration                                                                                                      47

Division 1—General                                                                                                    47

52.......... When general interest charge payable............................................... 47

53.......... Decisions under Part 4 to be in writing............................................ 48

54.......... Commissioner may arrange for use of computer programs to make decisions under Part 4   48

55.......... Approved forms approved by Commissioner................................. 48

Division 2—Tax file numbers                                                                                 49

Subdivision A—Quotation, use and transfer of FHSA holder’s tax file number 49

56.......... FHSA holder or applicant may quote tax file number...................... 49

57.......... FHSA provider may request FHSA holder’s or applicant’s tax file number          49

58.......... FHSA provider must request FHSA holder to quote tax file number if not quoted previously             49

59.......... No obligation to quote tax file number............................................. 50

60.......... Use of tax file number for certain purposes..................................... 50

61.......... FHSA provider must inform other FHSA provider or superannuation provider of tax file number for certain purposes.......................................................................................................... 52

Subdivision B—Method of quotation of tax file numbers, including deemed quotation      53

62.......... Method of quoting tax file number................................................... 53

63.......... FHSA holder taken to have quoted where Commissioner gives notice 54

64.......... Information provided by FHSA provider taken to have been provided by FHSA holder      54

65.......... FHSA holder or applicant taken to have quoted if he or she quoted for other purposes        54

Subdivision C—Incorrect quotation of tax file number                                      55

66.......... Effect of mistaken quotation of tax file number............................... 55

67.......... Effect of invalid quotation of tax file number................................... 55

Subdivision D—Provision of tax file numbers in forms etc.                              56

68.......... Forms etc. may require tax file number............................................ 56

69.......... Failure to quote tax file number........................................................ 57

Division 3—Secrecy                                                                                                    58

70.......... Secrecy.............................................................................................. 58

Division 4—Review of decisions                                                                          61

Subdivision A—Review of Commissioner decisions relating to Government FHSA contributions 61

71.......... Review of decisions.......................................................................... 61

72.......... Authorised review officers............................................................... 61

73.......... Withdrawal of review applications................................................... 61

Subdivision B—Review of certain APRA decisions                                            62

74.......... Reviewable decision.......................................................................... 62

75.......... Review of certain decisions.............................................................. 63

76.......... Statements to accompany notification of decisions......................... 64

Part 6—Enforcement                                                                                                           66

Division 1—Information gathering                                                                      66

77.......... Commissioner may require person or legal representative to give information       66

78.......... Commissioner may require FHSA provider to give information...... 67

79.......... Self‑incrimination.............................................................................. 68

Division 2—Access to premises                                                                           69

80.......... Appointment of authorised persons................................................ 69

81.......... Powers of authorised person in relation to premises....................... 69

82.......... Obligations of authorised persons—all cases................................... 70

83.......... Obligations of authorised persons—entry by consent..................... 70

84.......... Obligations of authorised persons—entry by warrant..................... 70

85.......... Obstruction of authorised person acting under a warrant................ 71

86.......... Persons to assist authorised persons acting under a warrant........... 71

87.......... Issue of warrant to enter premises................................................... 72

88.......... Identity cards.................................................................................... 73

Part 7—Prudential provisions                                                                                        74

Division 1—Authorisation of RSE licensees as FHSA providers       74

Subdivision A—Applying for authorisation as FHSA provider                        74

89.......... RSE licensee applications for authorisation as FHSA providers..... 74

90.......... APRA may request further information........................................... 74

91.......... Period within which application is to be decided............................. 75

Subdivision B—Grant of authorisation as FHSA provider                                75

92.......... Grant of authorisation as FHSA provider........................................ 75

93.......... Capital requirements......................................................................... 76

94.......... Documents required to bear ABN.................................................... 77

95.......... When an authorisation is in force..................................................... 77

96.......... APRA to give notice of refusal of applications................................ 78

Subdivision C—Conditions on authorisation as FHSA provider                      78

97.......... Conditions imposed on all authorisations........................................ 78

98.......... Additional conditions imposed by APRA on individual authorisations 79

99.......... Directions to comply with conditions on authorisation................... 80

Subdivision D—Variation or revocation of condition on authorisation as FHSA provider                80

100........ Applications for variation or revocation of condition on authorisation as FHSA provider    80

101........ APRA may request further information........................................... 81

102........ Period for deciding applications....................................................... 81

103........ APRA may vary or revoke conditions on authorisation—in accordance with application     82

104........ APRA may vary or revoke conditions on authorisation—on its own initiative     83

105........ Notification of APRA’s decisions under this Division.................... 84

106........ When variations or revocations come into force etc......................... 84

Subdivision E—Cancelling authorisation as FHSA provider                            85

107........ Cancellation of authorisation as FHSA provider.............................. 85

108........ Cancellation of authorisation for FHSA provider that is financial services licensee               85

109........ APRA may allow authorisation as FHSA provider to continue in effect               86

Subdivision F—Offences and self‑incrimination                                                86

110........ Providing an FHSA while unauthorised etc...................................... 86

111........ Failing to notify breach of condition on authorisation..................... 87

112........ Not complying with direction to comply with condition on authorisation             88

113........ Breach does not affect validity of issue of FHSA etc...................... 88

Division 2—Application of the Superannuation Industry (Supervision) Act 1993           89

114........ Modified application of the Superannuation Industry (Supervision) Act 1993       89

115........ Provisions of the Superannuation Industry (Supervision) Act 1993 that do not apply          90

116........ General modifications of applicable provisions of the Superannuation Industry (Supervision) Act 1993              90

117........ References to Prudential Standards.................................................. 91

118........ Persons who may be appointed to be custodians of FHSA trusts—approved guarantee etc.                92

119........ Transfer of FHSA trusts.................................................................. 92

120........ Covenants to be included in governing rules—investment management  92

Division 3—Prudential Standards                                                                        94

121........ Prudential Standards......................................................................... 94

122........ Notice of determination, variation or revocation of certain Prudential Standards   95

Division 4—Other prudential provisions                                                         96

123........ Requirement for ADIs and life insurance companies to notify APRA of intention to provide FHSAs 96

124........ Obligations of FHSA providers in relation to certain life policies... 96

125........ Protection for small balances............................................................ 97

Part 8—Miscellaneous                                                                                                       99

126........ Annual reports.................................................................................. 99

127........ Civil immunity where defendant was complying with this Act....... 99

128........ Payment out of a fund in accordance with the Bankruptcy Act 1966 99

129........ Compensation for acquisition of property..................................... 100

130........ State insurance................................................................................ 100

131........ Regulations..................................................................................... 100

 


 

 

First Home Saver Accounts Act 2008

No. 44, 2008

 

 

 

An Act to provide for first home saver accounts, and for related purposes

[Assented to 25 June 2008]

The Parliament of Australia enacts:


 

 

[Minister’s second reading speech made in—

House of Representatives on 28 May 2008

Senate on 16 June 2008]

(109/08)