First home saver account

For the Canadian equivalent, see First Home Savings Account.

First Home Saver Accounts (FHSAs) were a 2007 election policy of the Australian Labor Party under the First Home Saver Account Act. They were available to Australians from 2008 to 2015.[1]

History

For each dollar contributed to a FHSA during a financial year, the government contributed 17 cents up a specified limit.[2] This limit would increase through indexation.[3] In 2010, Treasurer Wayne Swan announced changes to the operation of FHSA accounts.[4] Previously, when a FHSA holder purchased a house, thus making them ineligible to hold a FHSA, the funds in their FSHA would be transferred to their superannuation account.[5] Under the proposed changes, the Government would allow funds in a FHSA to be paid into an approved mortgage after the FHSA holder satisfied the four year rule.[4] On 10 May 2011 it passed both houses, receiving royal assent on 25 May 2011.[6] According to sub-clause 2(1) of the Bill, the changes to the FHSA Act became law on 26 May 2011.[7]

In the December 2013 quarter, the Australian Prudential Regulation Authority website stated that there were 46,000 FHSAs containing A$521.5m.[8]

References

  1. ^ "Abolishing the First Home Saver Accounts Scheme". Ministers Treasury. Retrieved 1 April 2024.
  2. ^ "FIRST HOME SAVER ACCOUNTS ACT 2008 - SECT 38 Amount of Government FHSA contribution". www.austlii.edu.au. Archived from the original on 10 June 2011.
  3. ^ "FIRST HOME SAVER ACCOUNTS ACT 2008 - SECT 39 Government FHSA contribution threshold". www.austlii.edu.au. Archived from the original on 10 June 2011.
  4. ^ a b "Press Release - Helping Australians Buy Their First Home by Increasing Flexibility of First Home Saver Accounts [11/05/2010]". Archived from the original on 10 September 2010. Retrieved 17 December 2019.
  5. ^ "Guide to first home saver accounts". Archived from the original on 30 March 2011. Retrieved 17 December 2019.
  6. ^ "ParlInfo - Family Assistance and Other Legislation Amendment (Child Care and Other Measures) Bill 2011". Parlinfo.aph.gov.au. Retrieved 5 May 2022.
  7. ^ Tax Laws Amendment (2011 Measures No. 1) Bill 2011 parlinfo.aph.gov.au
  8. ^ "Pages - First Home Saver Accounts". www.apra.gov.au. Archived from the original on 27 February 2012.