FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 3 - ELIGIBILITY, CONTRIBUTION AND PAYMENT RULES  

Division 1 - Eligibility rules  

SECTION 23   Inactive FHSA  

23(1)    
An FHSA is inactive if:

(a) the FHSA provider receives a notice from the FHSA holder under subsection 20(1) that contains:

(i) a statement under paragraph 20(4)(a) ; or

(ii) an authority under paragraph 20(4)(b) ;

(and does not receive a revocation of that notice under subsection 20(5) ); or

(b) all of the following subparagraphs apply:

(i) the FHSA provider receives a notice from the Commissioner under subsection 21(1) ;

(ii) the FHSA provider does not receive a revocation of that notice under subsection 21(4) ;

(iii) within 30 days after receiving that notice, the FHSA provider does not receive a notice from the FHSA holder under subsection 20(1) that contains a statement under paragraph 20(4)(aa) ; or

(c) the FHSA provider receives a notice from the FHSA holder under subsection 20(1) that contains a statement under paragraph 20(4)(aa) (and does not receive a revocation of that notice under subsection 20(5) ); or

(d) the FHSA provider receives a notice from the Commissioner under subsection 67(2) (and does not receive a revocation of that notice); or

(e) the FHSA is opened or issued in response to an application to which subparagraph 19(1)(b)(ii) applies, where the other FHSA referred to in that subparagraph was inactive only because of:

(i) paragraph (c) of this subsection; or

(ii) an earlier application of this paragraph.

Note:

Paragraph (a) or (b) applies if the FHSA holder does not satisfy the FHSA eligibility requirements. However, neither paragraph need apply if the only one of those requirements not satisfied is the one about never holding an interest in a main residence. In that case, the FHSA holder can cause paragraph (c) to apply, keeping the FHSA open until an FHSA mortgage payment can be paid.

23(2)    
An FHSA is also inactive if:

(a) the provider of the FHSA makes a payment from the FHSA; and

(b) the provider must make the payment under:

(i) section 32 (FHSA home acquisition payment); or

(ii) section 33 (FHSA holder aged 60 or over); and

(c) the balance of the FHSA immediately after the payment is more than nil.

23(3)    
An FHSA is also inactive if the holder of the FHSA is 65 years of age or over.

23(4)    
An FHSA is also inactive if:

(a) the FHSA was opened or issued for a person because he or she made a statement in an application, in accordance with subparagraph 19(1)(b)(ii), that he or she would ensure that the balance of another FHSA held by him or her would be transferred to the FHSA; and

(b) a period of 44 days has elapsed since the FHSA was opened or issued; and

(c) the transfer did not take place within that period.

23(5)    
An FHSA can become inactive under a provision even if it has already become inactive under another provision.