FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 3 - ELIGIBILITY, CONTRIBUTION AND PAYMENT RULES  

Division 1 - Eligibility rules  

SECTION 21   Commissioner must notify provider if reason to believe that certain circumstances exist  

21(1)    
The Commissioner must give the provider of an FHSA a notice in accordance with this section if the Commissioner has reason to believe that the FHSA holder does not satisfy the FHSA eligibility requirements.

Note 1:

The Commissioner may give the provider a notice under subsection 67(2) if a correct TFN was not quoted for the FHSA holder.

Note 2:

The person may still satisfy the FHSA eligibility requirements even though the person has acquired a qualifying interest in his or her main residence (see subsection 15(3) ).

21(2)    
If the Commissioner gives a notice under subsection (1), the Commissioner must give a copy of the notice to the FHSA holder.

21(3)    
The notice must describe the operation of the following provisions that results from the notice being given:

(a) section 22 (requirement to close inactive FHSA);

(aa) if the FHSA holder does not satisfy the FHSA eligibility requirements only because of paragraph 15(1)(c) (about never holding a qualifying interest) - subparagraph 23(1)(b)(iii) (about holder needing to notify provider if wants FHSA to remain open until an FHSA mortgage payment can be paid);

(b) section 26 (limit on contributions to inactive FHSA);

(c) sections 32 and 35 (limit on payments from FHSA).

21(4)    
The Commissioner must give the FHSA provider a written revocation of the notice if:

(a) if paragraph (3)(aa) applies to the notice - the Commissioner becomes satisfied that the FHSA holder satisfies paragraph 15(1)(c) ; and

(aa) if paragraph (3)(aa) does not apply to the notice - the Commissioner becomes satisfied that the FHSA holder satisfies the FHSA eligibility requirements; and

(b) 30 days have not yet elapsed since the Commissioner gave the FHSA provider the notice; and

(c) the FHSA has not yet been closed in accordance with paragraph 22(2)(b).

21(5)    
If the Commissioner gives a revocation under subsection (4), the Commissioner must give a copy of it to the FHSA holder.