First Home Saver Accounts Regulations 2008 (Cth)

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First Home Saver Accounts Regulations 2008

Select Legislative Instrument No. 170, 2008 as amended

made under the

First Home Saver Accounts Act 2008

Compilation start date: 15 May 2014

Includes amendments up to:SLI No. 53, 2014

About this compilation

This compilation

This is a compilation of the First Home Saver Accounts Regulations 2008 as in force on 15 May 2014. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 16 May 2014.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

      

Contents

Part 1Preliminary  1Name of Regulations

 These Regulations are the First Home Saver Accounts Regulations 2008.

2Commencement

 These Regulations commence on the day after they are registered.

3Definitions

 In these Regulations:

Act means the First Home Saver Accounts Act 2008.

address for contact, for a person, means:

  • (a)

    if the person has given the Commissioner an address under regulation 11—that address or the address given by the person in substitution for that address; or

  • (b)

    otherwise—the address of the person as set out in any record in the custody of the Commissioner.

charge includes a mortgage, lien or other encumbrance.

CPI means the Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Bureau of Statistics.

SIS Act means the Superannuation Industry (Supervision) Act 1993.

SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994.

Part 1AKey concepts and other definitions  3AMeaning of unclaimed money – specified FHSAs
  • (1)

    For subsection 17A(3) of the Act, the balance of an FHSA specified in this regulation and held by a person is unclaimed money in relation to the person if, and only if, the conditions specified in this regulation are satisfied.

  • (2)

    All FHSAs are specified.

  • (3)

    The conditions relating to a FHSA are that:

    • (a)

      either:

      • (i)

        one of the requirements (a 4 year requirement) in subparagraphs 32(1)(c)(i) to (iii) of the Act has been met; or

      • (ii)

        one of the requirements (a 4 year requirement) in subparagraphs 32A(1)(e)(i) to (iii) of the Act has been met; and

    • (b)

      at any time after the time the 4 year requirement is met:

      • (i)

        no amount has been contributed to the FHSA for at least 3 years; and

      • (ii)

        no payment has been made from the FHSA for at least 3 years.

    Note: The requirements mentioned in paragraph (a) relate to actions of an FHSA holder that have occurred over at least 4 years.

Part 2Application of the Superannuation Industry (Supervision) Regulations 1994 to First Home Saver Accounts providers etc  4Application of the Superannuation Industry (Supervision) Regulations 1994

 The provisions of the SIS Regulations mentioned in Schedule 1 apply:

  • (a)

    to an RSE licensee that holds an authorisation as an FHSA provider (RSE FHSA provider) in the same way that they apply to an RSE licensee that is a trustee of a public offer superannuation fund; and

  • (aa)

    to the following persons, in the same way that the provisions apply to a responsible officer of an RSE licensee that is a trustee of a public offer superannuation fund:

    • (i)

      a director of the RSE FHSA provider;

    • (ii)

      a secretary of the RSE FHSA provider;

    • (iii)

      another person who is concerned or takes part in the management of the RSE FHSA provider; and

  • (b)

    to an FHSA trust in the same way that they apply to a public offer superannuation fund; and

  • (c)

    to the holder of an FHSA provided by an RSE FHSA provider in the same way that they apply to a beneficiary or member of a public offer superannuation fund; and

  • (d)

    to an FHSA provided by an RSE FHSA provider in the same way that they apply to a superannuation interest.

5General modifications of applicable provisions of the Superannuation Industry (Supervision) Regulations 1994

 The provisions of the SIS Regulations mentioned in Schedule 1 apply, as set out in regulation 4, with the following modifications:

  • (a)

    references to “the Act” are taken to be references to the Act (including provisions of the SIS Act that apply for the purposes of the Act);

  • (b)

    references to “these Regulations” are taken to be references to these Regulations;

  • (c)

    references to a year of income are taken to be references to a financial year.

Part 3Requirements on FHSA providers  6Covenants in governing rules of an FHSA provider – prescribed information and documents
  • (1)

    For paragraph 52(2)(j) of the SIS Act, as applied by Division 2 of Part 7 of the Act, the information set out in subregulations (2) and (3) is prescribed.

  • (2)

    The information is information that a concerned person reasonably requires for the purposes of:

    • (a)

      understanding any benefit entitlements that the concerned person may have, has or used to have under the FHSA; or

    • (b)

      understanding the main features of:

      • (i)

        each investment option offered by the FHSA provider; or

      • (ii)

        if the FHSA provider does not offer more than 1 investment option—the FHSA trust; or

    • (c)

      making an informed judgment about the management and financial condition of:

      • (i)

        each investment option offered by the FHSA provider; or

      • (ii)

        if the FHSA provider does not offer more than 1 investment option—the FHSA trust; or

    • (d)

      making an informed judgment about the investment performance of:

      • (i)

        each investment option offered by the FHSA provider; or

      • (ii)

        if the FHSA provider does not offer more than 1 investment option—the FHSA trust; or

    • (e)

      understanding the particular investments of:

      • (i)

        the FHSA trust; and

      • (ii)

        each investment option offered by the FHSA provider (if any).

  • (3)

    However, the information does not include information:

    • (a)

      contained only in internal working documents of the provider; or

    • (b)

      that would disclose, or tend to disclose:

      • (i)

        personal information of another person if, in the circumstances, the disclosure would be unreasonable; or

      • (ii)

        trade secrets or other information having a commercial value that would be reduced or destroyed by the disclosure; or

    • (c)

      in relation to which the provider owes to another person a duty of non‑disclosure.

  • (4)

    For subregulation (2), a concerned person is a person who holds, or within the preceding 12 months held, an FHSA with the FHSA provider.

    Note: This regulation applies instead of regulation 4.01 of the SIS Regulations.

7Conditions on authorisation – notifying APRA of changes to FHSA provider or trust
  • (1)

    For paragraph 97 (1) (f) of the Act, this regulation specifies conditions on FHSA authorisations.

  • (2)

    An FHSA provider must give written notice to APRA of any change in:

    • (a)

      the name of the provider; or

    • (b)

      the postal address, registered address or address for contact of the provider; or

    • (c)

      contact details of any contact person required to be included on the approved application form;

    within 28 days after the change.

  • (3)

    An incoming FHSA provider of an FHSA trust must give written notice to APRA that it has become the trustee of the trust:

    • (a)

      as soon as practicable after the FHSA provider has become the trustee of the trust; and

    • (b)

      before the end of 5 days after the change.

  • (4)

    An FHSA provider for an FHSA trust must give written notice to APRA of a decision or resolution to wind up the trust:

    • (a)

      as soon as practicable after the making of the decision or resolution; and

    • (b)

      before the winding up is commenced.

    Note: This regulation applies instead of regulation 11.07 of the SIS Regulations.

8Conditions on authorisation – disqualification of investment manager or custodian under SIS Act
  • (1)

    For paragraph 97 (1) (f) of the Act, this regulation specifies conditions on FHSA authorisations.

  • (2)

    An FHSA provider for an FHSA trust must not:

    • (a)

      appoint or engage a person to be; or

    • (b)

      allow a person to act as;

    an investment manager or custodian of the trust if the person is a disqualified person under Part 15 of the SIS Act.

  • (3)

    An FHSA provider that becomes aware that it has breached the condition specified in subregulation (2) must, as soon as practicable after so becoming aware, remove the person from the position of investment manager or custodian of the trust.

    Note: The FHSA provider may also have to notify APRA of the breach—see section 111 of the Act.

  • (4)

    In this regulation custodian and investment manager have the meaning given in subsection 10 (1) of the SIS Act.

9Condition on authorisation – charges over assets of funds
  • (1)

    For paragraph 97 (1) (f) of the Act, this regulation specifies a condition on FHSA authorisations.

  • (2)

    An FHSA provider for an FHSA trust must not give a charge over, or in relation to, an asset of the trust.

10Conditions on authorisation – restrictions on investments in provider or related body corporate
  • (1)

    For paragraph 97 (1) (f) of the Act, this regulation specifies conditions on FHSA authorisations.

  • (2)

    An FHSA provider for an FHSA trust must not, in its capacity as trustee of the trust, invest in:

    • (a)

      itself (whether in its capacity as trustee or otherwise); or

    • (b)

      a related body corporate.

  • (3)

    However, the provider may invest in a related body corporate if:

    • (a)

      the investment is a deposit and the body corporate is the ADI that issued the deposit; or

    • (b)

      the investment is a life policy and the body corporate is the life insurance company that issued the policy; or

    • (c)

      all of the following apply:

      • (i)

        the investment (prescribed investment) is an investment in, or a loan to, the body corporate;

      • (ii)

        the body corporate is an ADI or a life insurance company;

      • (iii)

        the value of the provider’s prescribed investments does not exceed 5% of the trust’s total assets; or

    • (d)

      all of the following apply:

      • (i)

        the investment is in a publicly available unit trust;

      • (ii)

        the body corporate is the responsible entity of the trust;

      • (iii)

        the body corporate exercises no other function in relation to the trust.

  • (4)

    If the value of an FHSA provider’s prescribed investments in a related body corporate exceeds 5% of the trust’s total assets, the provider must, as soon as practicable, divest itself of such of those investments as is required to reduce the value of the investments to no more than 5% of the trust’s total assets.

Part 4Notices  11Notification of address for contact
  • (1)

    A person may notify the Commissioner of an address where the Commissioner may contact the person for the purposes of the Act.

  • (2)

    The address may be:

    • (a)

      a physical address; or

    • (b)

      a postal address; or

    • (c)

      an electronic address.

    Note 1: An address may be both a physical address and a postal address (eg a street address).

    Note 2: The following are examples of an electronic address:

    (a) an e‑mail address;

    (b) a fax number;

    (c) a phone number for a phone or device which is capable of receiving electronic documents;

    (d) a secure website that the person can access to obtain a document.

12Change of FHSA provider’s address

 If:

  • (a)

    an FHSA provider has given the Commissioner an address under regulation 11; and

  • (b)

    the provider’s address changes;

the provider must notify the Commissioner of the change of address within 28 days of the change.

Note: If the provider holds an authorisation as an FHSA provider under Part 7 of the Act, the provider must also tell APRA of the change—see subregulation 7 (2).

13Giving notices under the Act
  • (1)

    If the Commissioner may or must give a notice to a person under the Act, the Commissioner may give the notice by:

    • (a)

      giving it personally to the person; or

    • (b)

      if the person’s address for contact is a physical address—leaving it at that address; or

    • (c)

      if the person’s address for contact is a postal address—by posting it to that address by prepaid letter post; or

    • (d)

      if the person’s address for contact is an electronic address—by sending it electronically to that address.

  • (2)

    If the Commissioner may or must notify a person of a matter under the Act, the Commissioner may notify the person by:

    • (a)

      personally notifying the person (for example, face‑to‑face or by phone); or

    • (b)

      if the person’s address for contact is a physical address—delivering a notice to that address; or

    • (c)

      if the person’s address for contact is a postal address—by posting a notice by prepaid letter post to that address; or

    • (d)

      if the person’s address for contact is an electronic address—by sending a notice electronically to that address.

  • (3)

    In the absence of proof to the contrary, a notice or notification given in accordance with subregulation (1) or (2) is taken to have been received by the person:

    • (a)

      if the person’s address for contact is a postal address—when the notice or notification would, in the ordinary course of post, have arrived at the place to which it was addressed; or

    • (b)

      otherwise—when the notice is given, left or sent.

  • (4)

    This regulation does not affect the operation of any other law of the Commonwealth, or any law of a State or Territory, that deals with service of documents.

    Note: For an example of another law that deals with the service of documents, see sections 28A and 29 of the Acts Interpretation Act 1901.

13AANotice to applicants of proposed legislative changes
  • (1)

    This regulation applies if:

    • (a)

      on or after 13 May 2014, the Minister announces in the Parliament (including by tabling a document) an intention to amend the Act; and

    • (b)

      after the announcement is made, a person applies to an FHSA provider to open or issue an FHSA.

  • (2)

    The FHSA provider must give the person written notice of the announcement and its effect before the FHSA provider opens or issues the account.

13ABNotice of proposed legislative changes – transitional
  • (1)

    This regulation applies if:

    • (a)

      on or after 13 May 2014, the Minister announces in the Parliament (including by tabling a document) an intention to amend the Act; and

    • (b)

      after the announcement is made, an FHSA provider opens or issues an FHSA; and

    • (c)

      the FHSA is opened or issued as a result of an application made:

      • (i)

        after the announcement is made; but

      • (ii)

        before regulation 13AA commences.

  • (2)

    The FHSA provider must give the holder of the FHSA written notice of the announcement and its effect.

  • (3)

    The notice must be given within 7 days after the FHSA is opened or issued.

  • (4)

    The notice must also state:

    • (a)

      the effect of section 1019B (cooling‑off period) of the Corporations Act 2001; and

    • (b)

      the day on which the cooling‑off period for the FHSA ends.

Part 4AUnclaimed money  13APayment where money later claimed etc.
  • (1)

    This regulation sets out how to work out the interest for subsection 51C(1A) of the Act.

  • (2)

    If the unclaimed money is paid to ASIC in more than one payment, the interest is to be worked out separately for each payment.

  • (3)

    The interest is to be worked out for the period (the interest period) that:

    • (a)

      starts on the later of:

      • (i)

        1 July 2013; and

      • (ii)

        the day when the unclaimed money was paid to ASIC; and

    • (b)

      ends on the 14th day after ASIC last authorised the unclaimed money to be paid under subsection 51C(1) of the Act.

  • (4)

    The interest is to be worked out by adding together the interest for each financial year during the interest period.

  • (5)

    The interest for each financial year is worked out using the following formula, and rounding the result to the nearest cent:

     

     where:

    amount means the amount of unclaimed money plus the interest (if any) worked out for each earlier financial year for which interest is payable.

    days interest payable means the number of days in the financial year for which interest is payable.

    days in the financial year means the number of days in the financial year.

    interest rate, for a financial year, means:

    • (a)

      the percentage change in the All Groups CPI between the 2 March quarters most recently published before the first day of the financial year (rounded up to 4 decimal places); or

    • (b)

      if that percentage change is less than 0%—0%.

Part 5Miscellaneous  14Disqualification by Federal Court – matters to take into account
  • (1)

    For paragraph 126H (6) (a) of the SIS Act, as applied by Division 2 of Part 7 of the Act, the matters set out in this regulation are specified.

  • (2)

    In relation to subsection 126H (3) of the SIS Act, as applied, the matters are:

    • (a)

      whether the individual is, or has been, a disqualified person under Part 15 of the SIS Act; and

    • (b)

      whether the individual has contravened the SIS Act on one or more occasions; and

    • (c)

      the number, nature and seriousness of any contraventions of the SIS Act.

  • (3)

    In relation to subsection 126H (4) of the SIS Act, as applied, the matters are:

    • (a)

      whether the individual is, or has been, a responsible officer of a trustee, investment manager or custodian that is, or has been, a disqualified person under Part 15 of the SIS Act; and

    • (b)

      whether the individual is, or has been, a responsible officer of a trustee, investment manager or custodian that has contravened the SIS Act on one or more occasions; and

    • (c)

      the number, nature and seriousness of any contraventions of the SIS Act.

  • (4)

    In relation to subsection 126H (5) of the SIS Act, as applied, the matters are:

    • (a)

      whether the individual has engaged in conduct that relates to superannuation entities within the meaning of the SIS Act on one or more occasions; and

    • (b)

      whether any conduct of that kind makes it reasonable to conclude that the individual is not a fit and proper person to be a person referred to in subsection 126H (2) of the SIS Act as applied.

15Names and signatures of Commissioner etc
  • (1)

    Judicial notice must be taken of the names and signatures of the persons who are, or were at any time, the Commissioner, a Second Commissioner, a Deputy Commissioner or a delegate of the Commissioner.

  • (2)

    A notice or other document given or produced for the Act that bears the written, printed or stamped name (including a facsimile of the signature) of a person who is, or was at any time, the Commissioner, a Second Commissioner, a Deputy Commissioner or a delegate of the Commissioner in place of that person’s signature is to be taken as signed by that person unless it is proved that the document was issued without that person’s authority.

  • (3)

    References to position titles in this regulation have the same meaning in this regulation as they do in the Taxation Administration Act 1953.

Schedule 1Provisions of Superannuation Industry (Supervision) Regulations 1994 applied to First Home Saver Accounts providers etc

(regulation 4)

  

Applied provision

regulation 1.03, to the extent it defines terms used in other applied provisions

regulation 1.04

regulation 1.04A

regulation 3.04A

regulation 3.10

regulation 5.01, definition of transferred

regulation 6.29

Division 9.2, other than regulation 9.03

regulation 11.03

regulation 11.04

regulation 11.06A

regulation 13.19

regulation 13.20

regulation 13.21

regulation 13.22

Division 13.3A, other than regulation 13.22B

Division 13.5

Schedule 1AAA

Schedule 3

Endnotes

Endnote 1About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key—Endnote 2

The abbreviation key in this endnote sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended the compiled law. The information includes commencement information for amending laws and details of application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law, but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2Abbreviation key

ad = added or inserted

pres = present

am = amended

prev = previous

c = clause(s)

(prev) = previously

Ch = Chapter(s)

Pt = Part(s)

def = definition(s)

r = regulation(s)/rule(s)

Dict = Dictionary

Reg = Regulation/Regulations

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expired or ceased to have effect

rep = repealed

hdg = heading(s)

rs = repealed and substituted

LI = Legislative Instrument

s = section(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

mod = modified/modification

Sdiv = Subdivision(s)

No = Number(s)

SLI = Select Legislative Instrument

o = order(s)

SR = Statutory Rules

Ord = Ordinance

Sub‑Ch = Sub‑Chapter(s)

orig = original

SubPt = Subpart(s)

par = paragraph(s)/subparagraph(s)

/sub‑subparagraph(s)

Endnote 3Legislation history

Number and year

FRLI registration

Commencement

Application, saving and transitional provisions

2008 No. 170

8 Aug 2008 (see F2008L02964)

9 Aug 2008

2012 No. 319

11 Dec 2012 (see F2012L02397)

12 Dec 2012

117, 2013

17 June 2013 (see F2013L01010)

Sch 1 (items 5, 6): 18 June 2013

155, 2013

28 June 2013 (see F2013L01246)

Sch 1 (items 87, 88) and Sch 2 (item 5): 1 July 2013

53, 2014

15 May 2014 (see F2014L00535)

15 May 2014

Endnote 4Amendment history

Provision affected

How affected

Pt 1A

Pt 1A.....................................

ad 2012 No 319

r 3..........................................

am No 117, 2013

r 3A.......................................

ad 2012 No 319

Pt 2

r 4..........................................

am No 155, 2013

Pt 3

r 6..........................................

am No 155, 2013

Pt 4

r 13AA...................................

ad No 53, 2014

r 13AB...................................

ad No 53, 2014

Pt 4A

Pt 4A.....................................

ad No 117, 2013

r 13A.....................................

ad No 117, 2013

Sch 1

Sch 1......................................

am No 155, 2013

Endnote 5Uncommenced amendments [none]Endnote 6Modifications [none]Endnote 7Misdescribed amendments [none]Endnote 8Miscellaneous [none]
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