Banking and Finance Point-in-Time Service Updates

The Banking and Finance Point-in-Time Service has been updated to include the amendments from the Treasury Laws Amendment (First Home Saver Accounts) Regulation 2015 (91 of 2015).

Regulation 91 of 2015

The purpose of the Treasury Laws Amendment (First Home Saver Accounts) Regulation 2015 (Regulation) is to amend the Australian Prudential Regulation Authority Regulations 1998, Corporations Regulations 2001, Electronic Transactions Regulations 2000, Retirement Savings Accounts Regulations 1997 and the Superannuation Industry (Supervision) Regulations 1994 (Principal Regulations) to remove references to First Home Saver Accounts (FHSA) Scheme.

In 2008, the former Government established FHSAs to assist individuals saving for their first home. Broadly, individuals saving using a FHSA are entitled to Government contributions (17 per cent of the first $6,000 contributed in a year) and tax concessions on any interest earned, but may only withdraw amounts from the FHSA to use for the purchase of a home (or contribute to superannuation). Take up of FHSAs was been very low, with only around 47,000 in existence as of September 2014.

On 13 May 2014, the Government announced as part of the 2014-15 Budget that it intended to close the FHSA Scheme. To give effect to this decision, Schedule 1 to the Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 2015, which is currently before Parliament, would repeal the Acts providing for the FHSA Scheme, with effect from 1 July 2015.

The amendments made by Regulation 91 of 2015 have been updated in the Point-in-Time Banking and Finance Service current to 29 June 2015. (NB: Subscription required).

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