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Exposure Draft - Increasing the flexibility of First Home Saver Accounts


Wednesday, 6 October 2010

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The Treasurer has released for public consultation an exposure draft of legislation that will increase the flexibility of First Home Saver Accounts.

First Home Saver Accounts provide a simple, tax effective way for Australians to save for their first home through a combination of government contributions and low taxes.

Generally, a First Home Saver Account holder would need to keep their savings in a First Home Saver Account for four financial years before they are able to use those savings to buy a home. Under the existing legislation, if the account holder buys a home prior to meeting the minimum release conditions, the balance of their Account must be transferred to their superannuation so that it remains in a concessionally taxed environment.

To increase flexibility, the draft legislation now released for public consultation allows savings in a First Home Saver Account to be paid into an approved mortgage after the end of a minimum qualifying period, rather than requiring it to be paid to a superannuation account, if a home is purchased prior to the minimum release conditions being met.

The new rules will apply to houses purchased after Royal Assent.

Making a submission

Interested parties are invited to comment on the exposure draft bill and explanatory materials. While submissions may be lodged electronically or by post, electronic lodgement is preferred. For accessibility reasons, please submit responses sent via email in a Word or RTF format. An additional PDF version may also be submitted.

All information (including name and address details) contained in submissions will be made available to the public on the Treasury website unless you indicate that you would like all or part of your submission to remain in confidence. Automatically generated confidentiality statements in emails do not suffice for this purpose. Respondents who would like part of their submission to remain in confidence should provide this information marked as such in a separate attachment. Legal requirements, such as those imposed by the Freedom of Information Act 1982, may affect the confidentiality of your submission.

Closing date for submissions: Thursday, 4 November 2010

Address written submissions to:
Philanthropy and Exemptions Unit
Personal and Retirement Income Division
The Treasury
Langton Crescent

Email: firsthomesaver@treasury.gov.au

For enquiries, please call Fiona McLaren on (02) 6263 3010.

Documents Available:

Acrobat (PDF) documents

 Acrobat (PDF)

Exposure Draft  48.39kb
Explanatory Material  59.51kb
Consultation Summary  34.62kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Exposure Draft  9,440.80kb
Explanatory Material  240.41kb
Consultation Summary  871.76kb

Related Items:

Exposure Draft - Corporations Amendment Regulations 2011 (No. ) - 10/02/2011
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Submissions: Exposure Draft - Increasing the flexibility of First Home Saver Accounts - 1/03/2011

Treasury has received nineteen submissions in response to this consultation. There were eighteen public submissions, and one confidential submission. The public submissions are listed below and are accessible by selecting the author.

The opinions expressed in the submissions are those of the authors and do not necessarily reflect the views of the Government or the Treasury.

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