FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 2 - KEY CONCEPTS AND OTHER DEFINITIONS  

Division 1 - Key concepts  

SECTION 17   Meaning of FHSA payment conditions  
Payment conditions for FHSA home acquisition payments

17(1)    
An FHSA home acquisition payment satisfies the FHSA payment conditions if:

(a) no later than 6 months after the payment is made, the person who holds or held the FHSA uses an amount equal to the payment in acquiring a qualifying interest in a dwelling in Australia or Norfolk Island; and

(b) the dwelling is the person ' s main residence for a continuous period that:

(i) is at least 6 months long; and

(ii) starts within the period mentioned in subsection (2); and

(c) if the construction of the dwelling is not complete when the payment is made - that construction is complete within a reasonable period after the payment is made.

17(2)    
The period:

(a) starts:

(i) if the construction of the dwelling is not complete when the payment is made - when the construction of the dwelling is complete; or

(ii) otherwise - when the person acquires the qualifying interest in the dwelling; and

(b) ends 12 months after the period starts, or at a later time that the Commissioner considers reasonable in the circumstances.

Note:

This Act does not provide for the consequences of a payment failing to satisfy the FHSA payment conditions. However, the FHSA holder will be liable for FHSA misuse tax in accordance with Subdivision 345-C of the Income Tax Assessment Act 1997 .

17(3)    
An FHSA home acquisition payment also satisfies the FHSA payment conditions if:

(a) the person who holds or held the FHSA fails to satisfy the conditions in subsection (1); and

(b) that failure is reasonable in the circumstances; and

(c) if it is reasonable to require the person to do so, the person has, as soon as is practicable, contributed to an FHSA held by the person an amount equal to the payment or a lesser amount that is reasonable in the circumstances.

17(4)    
For the purposes of paragraph (3)(b), in determining whether a failure is reasonable, have regard to:

(a) whether the failure to satisfy the conditions in subsection (1) was beyond the person ' s control; and

(b) whether that failure was reasonably foreseeable by the person; and

(c) whether any previous FHSA home acquisition payment in respect of the person has failed to satisfy the conditions in subsection (1); and

(d) any other relevant matter.

Note:

This Act does not provide for the consequences of a payment failing to satisfy the FHSA payment conditions. However, the FHSA holder will be liable for FHSA misuse tax in accordance with Subdivision 345-C of the Income Tax Assessment Act 1997 .

Payment conditions for FHSA mortgage payments

17(5)    
An FHSA mortgage payment satisfies the FHSA payment conditions for a qualifying interest in a dwelling if:

(a) no later than 28 days after the payment is made, the person who held the FHSA uses an amount equal to the payment in repaying all or part of a loan secured by a genuine mortgage:

(i) over the qualifying interest; and

(ii) for which the person is a mortgagor; and

(b) for a continuous period that is at least 6 months long, and that starts within the period mentioned in subsection (6):

(i) the person holds the qualifying interest; and

(ii) the dwelling is the person ' s main residence; and

(c) if the construction of the dwelling is not complete when the payment is made - that construction is complete within a reasonable period after the payment is made.

17(6)    
The period:

(a) starts:

(i) if the construction of the dwelling is not complete when the payment is made - when the construction of the dwelling is complete; or

(ii) otherwise - when the payment is made; and

(b) ends 12 months after the period starts, or at a later time that the Commissioner considers reasonable in the circumstances.

Note:

This Act does not provide for the consequences of a payment failing to satisfy the FHSA payment conditions. However, the FHSA holder will be liable for FHSA misuse tax in accordance with Subdivision 345-C of the Income Tax Assessment Act 1997 .