FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 3 - ELIGIBILITY, CONTRIBUTION AND PAYMENT RULES  

Division 4 - Requirements to make payments from FHSAs  

SECTION 32A   Payment from FHSA for repaying a mortgage if home acquired before qualifying period ends  

32A(1)    
This section applies if:

(a) the holder of an FHSA acquires at a particular time (the acquisition time ) a qualifying interest in a dwelling in Australia or Norfolk Island; and

(b) before that time, the FHSA holder had never held a qualifying interest in a dwelling in Australia or Norfolk Island at a time when the dwelling was the FHSA holder ' s main residence; and

(c) the FHSA holder gives the FHSA provider an application in the approved form requesting an amount to be paid from the FHSA; and

(d) the FHSA holder declares in the application that the payment will satisfy the FHSA payment conditions mentioned in subsection 17(5) for the qualifying interest; and

(e) any of the following requirements are met:

(i) the requirement in subparagraph 32(1)(c)(i) would be met if the FHSA holder were taken to have made a personal FHSA contribution of at least $1,000 for the financial year that includes the acquisition time and for each later financial year;

(ii) the FHSA holder is in breach of the account balance cap, and has held an FHSA in at least 4 financial years (one of which may be the financial year in which the payment is to be made);

(iii) the FHSA holder declares in the application that he or she holds the qualifying interest together with another FHSA holder in respect of whom the requirement in subparagraph 32(1)(c)(i) , or in subparagraph (i) or (ii) of this paragraph, is met; and

(f) the provider is satisfied that the requirements (if any) specified in the regulations are met; and

(g) the FHSA is inactive only because of paragraph 23(1)(c) or (e) (about an FHSA remaining open until an FHSA mortgage payment can be paid), and is yet to be closed.

Note 1:

The FHSA holder will need to use the payment to repay all or part of a loan secured by a genuine mortgage over the qualifying interest (see subsection 17(5) ).

Note 2:

Making a false or misleading statement in the application may constitute an offence: see subsection 8J(9) and sections 8K and 8N of the Taxation Administration Act 1953 .

32A(2)    
The FHSA provider must pay the amount as requested:

(a) as soon as practicable after the application is made; and

(b) no later than 30 days after the application is made.

Offence

32A(3)    
A person commits an offence if the person contravenes subsection (2).

Penalty: 100 penalty units.

Validity of transaction not affected by contravention

32A(4)    
A contravention of subsection (2) does not affect the validity of a transaction.