FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 3 - ELIGIBILITY, CONTRIBUTION AND PAYMENT RULES  

Division 2 - Contributions to FHSAs  

SECTION 28   Breach of account balance cap  

28(1)    
If the balance of an FHSA at a time exceeds the account balance cap for the financial year in which that time occurs, the person who holds the FHSA is in breach of the account balance cap:

(a) at that time; and

(b) at all later times (subject to this section).

Note:

The FHSA holder is in breach of the account balance cap at a later time even if the balance of his or her FHSA falls short of the account balance cap for the financial year in which that later time occurs.

28(2)    
However, the person is not in breach of the account balance cap during the period mentioned in subsection (3) if:

(a) the person applies to open or be issued with an FHSA; and

(b) the initial contribution to the FHSA to be opened or issued will be made in accordance with paragraph 17(3)(c) .

28(3)    
The period:

(a) starts when the FHSA mentioned in paragraph (2)(a) is opened or issued; and

(b) ends at the first time when the balance of that FHSA (or any other FHSA later held by the person) exceeds the account balance cap for the financial year in which that time occurs.

28(4)    
The person is also not in breach of the account balance cap during the period mentioned in subsection (5) if:

(a) a payment of a kind mentioned in paragraph 31(1)(c) (payments because of a family law obligation) is made from an FHSA held by the person; and

(b) the balance of that FHSA immediately after the payment is less than the account balance cap for the financial year in which the payment is made.

28(5)    
The period:

(a) starts when the payment is made; and

(b) ends at the first time when the balance of that FHSA (or any other FHSA later held by the person) exceeds the account balance cap for the financial year in which that time occurs.