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Exposure Draft - Corporations Amendment Regulations 2011 (No. )


Thursday, 10 February 2011

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The Tax Laws Amendment (2011 Measures No. 1) Bill 2011 (Tax Bill) will shortly be introduced into Parliament to amend, inter alia, the operation of First Home Saver Accounts (FHSA).  The Assistant Treasurer and Minister for Financial Services and Superannuation has released for public consultation an exposure draft of related regulations which make consequential amendments to the disclosure requirements for FHSAs in the Corporations Regulations 2001.

FHSAs were established in 2008 through the First Home Saver Accounts Act 2008.  They 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 FHSA 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 FHSA must be transferred to their superannuation so that it remains in a concessionally taxed environment.

To increase flexibility, the amended Tax Bill legislation proposes to allow savings in a FHSA 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 the Tax Bill receives Royal Assent.

The Corporations Regulations as drafted amend the existing disclosure requirements to provide for the changes to be reflected in the provision of a short-form PDS required for the issue of a FHSA.

Making a submission

Interested parties are invited to comment on the draft regulations and explanatory material. 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: Friday, 18 February 2011

Address written submissions to:
The General Manager
Corporations and Financial Services Division
The Treasury
Langton Crescent

Email: FHSAdisclosureregs@treasury.gov.au

For enquiries, please call Christian Mikula on (02) 6263 2046.

Documents Available:

Acrobat (PDF) documents

 Acrobat (PDF)

Draft Regulations  127.95kb
Explanatory Material  21.98kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Draft Regulations  370.36kb
Explanatory Material  69.50kb

Related Items:

Exposure Draft - Increasing the flexibility of First Home Saver Accounts - 6/10/2010
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