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Exposure Draft - Consultation Draft of The Corporations Amendment Regulations 2011 - FHSA and Periodic Statments

Date:

Tuesday, 20 September 2011

Content ID:

2164

Abstract:

The Assistant Treasurer and Minister for Financial Services and Superannuation, the Hon Bill Shorten is seeking public comment on draft regulations which set out additional information requirements that need to be disclosed within periodic statements issued to First Home Saver Account holders.  Periodic statements provide account holders with details on the status of their account, including how many years of contribution are still required before they are eligible to access the funds.

First Home Saver Accounts (FHSA) have been available since October 2008, established through the First Home Savers Accounts Act 2008.  An FHSA is a financial product designed, through government subsidies, to assist consumers to purchase their first home.  The rules governing the disclosure requirements for issuing an FHSA were originally set out in the Corporations Amendment Regulations 2008 (Nos. 4 & 5)

Recent changes to the operation of the FHSA to provide more flexibility to account holders were made through the Tax Laws Amendment (2011 Measures No. 1) Act 2011.  Subject to certain qualifying conditions, these changes now allow the account holder to use the money in the account towards their home purchase if they purchased the dwelling prior to meeting the release conditions, rather than only being able to transfer the money into a superannuation and retirement savings account.

These draft amendments amend the existing regulations to provide for reporting requirements in the periodic statement on the number of contributing years remaining on the account even where a dwelling has already been acquired.

Comments on the draft regulations are requested by COB, Tuesday 4 October 2011.

Making a submission

Interested parties are invited to comment on the draft regulations.  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:  Tuesday, 4 October 2011

Address written submissions to:

Mr Christian Mikula
Manager
Consumer Credit Unit
Retail Investor Division
The Treasury
Langton Crescent
PARKES ACT 2600

Email: financialservices_FHSA@treasury.gov.au

Documents Available:


Acrobat (PDF) documents

 Acrobat (PDF)

Draft Regulations  104.62kb
Explanatory Commentary  39.18kb

Microsoft Word (RTF) documents

 Microsoft Word (RTF)

Explanatory Commentary  74.95kb

Related Items:

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