FIRST HOME SAVER ACCOUNTS ACT 2008 (REPEALED)

PART 3 - ELIGIBILITY, CONTRIBUTION AND PAYMENT RULES  

Division 1 - Eligibility rules  

SECTION 20   FHSA holder must notify provider if he or she does not satisfy the FHSA eligibility requirements  

20(1)    
The holder of an FHSA must give the FHSA provider a notice in the approved form in accordance with this section if circumstances arise resulting in the FHSA holder not satisfying the FHSA eligibility requirements.

Note:

Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 provides an administrative penalty for a breach of this subsection. A breach of this subsection may also be an offence under section 8C of that Act.

20(2)    
The FHSA holder must give the notice within 30 days after the circumstances arise.

20(3)    
However, the FHSA holder need not give the notice if:

(a) the FHSA is closed within 30 days after the circumstances arise; or

(b) the FHSA provider must pay an amount from the FHSA under section 32 (FHSA home acquisition payment) because the FHSA holder requests the FHSA provider within 30 days after the circumstances arise to do so.

20(4)    
The notice must contain:

(a) if the FHSA holder is aged 60 or over and wants the balance of the FHSA paid to him or her - a statement to that effect; or

(aa) if:

(i) the FHSA holder does not satisfy the FHSA eligibility requirements only because of paragraph 15(1)(c) (about never holding a qualifying interest); and

(ii) the FHSA holder wants the FHSA to remain open until an FHSA mortgage payment can be paid;

a statement to that effect; or

(b) otherwise - an authority for the FHSA provider to contribute the balance of the FHSA to a superannuation interest of the FHSA holder in a complying superannuation plan.

20(5)    
The FHSA holder may give the FHSA provider a written revocation of the notice if:

(a) if the notice contains a statement under paragraph (4)(a) or an authority under paragraph (4)(b) - the FHSA holder becomes satisfied that he or she satisfies the FHSA eligibility requirements; and

(aa) if the notice contains a statement under paragraph (4)(aa) - the FHSA holder becomes satisfied that he or she satisfies paragraph 15(1)(c) ; and

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

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

Note:

Section 128A extends the operation of this section in relation to an FHSA opened on a person's behalf by APRA or a liquidator under Division 2AA (Financial claims scheme for account-holders with insolvent ADIs) of Part II of the Banking Act 1959 .