Abolition of the first home saver accounts (FHSA) scheme
The government has abolished the first home saver accounts scheme effective from 1 July 2015 and all first home saver accounts will be treated like any other account held with a provider.
- Restrictions on withdrawals will be removed from 1 July 2015. You can withdraw and use the balance of your account however you like from this date.
- As per the announcement, no government FHSA contributions will be paid for the 2014-15 income year.
- If you are entitled to government FHSA contributions for an earlier period, we will continue to pay these. You must ensure that you claim outstanding government FHSA contributions on or before 30 June 2017. Claims made after this date cannot be processed.
- Tax and social security concessions will cease from 1 July 2015. Existing account holders continue to receive all tax and social security concessions associated with these accounts until 30 June 2015.
- New accounts from 7.30pm, Tuesday 13 May 2014 are not entitled to receive any concessions or government contributions.
The existing rules continue to apply until 30 June 2015 and the ATO retains responsibility for ensuring compliance for actions up to this date.
The Tax and Superannuation Laws Amendment (2015 Measures No. 1) Act 2015External Link received Royal Assent on 25 June 2015.
In the 2014-15 Budget, the government announced the changes to abolish the first home saver accounts scheme.
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