2008 The Parliament of the Commonwealth of Australia HOUSE OF REPRESENTATIVES Presented and read a first time First Home Saver Accounts Bill 2008 No. , 2008 (Treasury) A Bill for an Act to provide for first home saver accounts, and for related purposes [Page Break] Part 1--Preliminary 1 Division 1--General 1 1 Short title ............................................................................................ 1 2 Commencement .................................................................................. 1 3 General administration of Act ............................................................ 2 4 Application of Act not to be excluded or modified ............................ 2 5 Act extends to external Territories ..................................................... 2 6 Crown to be bound.............................................................................. 2 Division 2--Simplified outline 3 7 Simplified outline ............................................................................... 3 Part 2--Key concepts and other definitions 5 Division 1--Key concepts 5 8 M eaning of FHSA ............................................................................... 5 9 M eanings of hold and FHSA holder ................................................... 5 10 M eanings of provide and FHSA provider........................................... 5 11 M eanings of Government FHSA contribution and personal FHSA contribution.............................................................................. 6 12 M eaning of qualifying interest in a dwelling...................................... 7 13 M eaning of main residence ................................................................ 8 14 M eaning of FHSA home acquisition payment .................................... 8 15 M eaning of FHSA eligibility requirements......................................... 8 16 M eaning of FHSA ineligibility payment ............................................. 9 17 M eaning of FHSA payment conditions ............................................... 9 Division 2--Other definitions 12 18 Definitions ........................................................................................ 12 Part 3--Eligibility, contribution and payment rules 18 Division 1--Eligibility rules 18 19 Obligation of FHSA provider in op ening or issuing FHSA ............. 18 20 FHSA holder must notify provider if he or she does not satisfy the FHSA eligibility requirements ........................................ 19 21 Commissioner must notify provider if reason to believe that certain circumstances exist ............................................................... 20 22 FHSA provider to close inactive FHSA ........................................... 20 23 Inactive FHSA .................................................................................. 21 24 Default superannuation plan ............................................................. 22 i First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] 25 Limit on contributions to FHSAs--account holder aged 65 or over ............................................................................................... 24 26 Limit on contributions to FHSAs--inactive FHSA.......................... 24 27 Limit on contributions to FHSAs--holder in breach of account balance cap .......................................................................... 25 28 Breach of account balance cap ......................................................... 26 29 Account balance cap ......................................................................... 27 30 Indexation of account balance cap .................................................... 27 Division 3--Restrictions on payments from FHSAs 29 31 FHSA provider must not make payment from FHSA unless authorised by law etc. ....................................................................... 29 Division 4--Requirements to make payments from FHSAs 31 32 Payment from FHSA for purposes of acquiring a home .................. 31 33 Payment from FHSA if FHSA holder aged 60 or over .................... 32 34 Payment of FHSA balance as contribution to superannuation ......... 32 35 Payment of FHSA balance as transfer to another FHSA.................. 33 Part 4--Government FHSA contributions 34 Division 1--Eligibility for and amount of a Government FHSA contribution 34 36 Whether a Government FHSA contribution is payable .................... 34 37 Notification of eligibility status ........................................................ 34 38 Amount of Government FHSA contribution .................................... 35 39 Government FHSA contribution threshold....................................... 35 40 Indexation of Government FHSA contribution threshold ................ 35 Division 2--Payment of Government FHSA contribution 37 41 Commissioner's determinations ....................................................... 37 42 Payment of Government FHSA contribution ................................... 37 43 Providers to return Government FHSA contribution in certain circumstances ........................................................................ 38 44 Government FHSA contribution increased by interest amount if paid late in certain circumstances..................................... 39 45 Commissioner to notify if Government FHSA contribution paid ................................................................................................... 39 Division 3--Underpayments of Government FHSA contribution 40 46 Underpayment determinations.......................................................... 40 47 Providers to return underpaid amounts in certain circumstances .................................................................................... 41 First Home Saver Accounts Bill 2008 No. , 2008 ii [Page Break] amount if underpaid amount paid late in certain circumstances .................................................................................... 41 49 Small underpayments paid by cheque .............................................. 42 Division 4--Overpayments of Government FHSA contribution 43 50 Recovery of overpayments ............................................................... 43 51 Small overpayments.......................................................................... 45 Part 5--Administration 46 Division 1--General 46 52 When general interest charge payable .............................................. 46 53 Decisions under Part 4 to be in writing ............................................ 47 54 Commissioner may arrange for use of computer programs to make decisions under Part 4 ............................................................. 47 55 Approved forms approved by Commissioner................................... 47 Division 2--Tax file numbers 48 Subdi vision A--Quotation, use and transfer of FHS A hol der's tax file number 48 56 FHSA holder or applicant may quote tax file number ...................... 48 57 FHSA provider may request FHSA holder's or applicant's tax file number .................................................................................. 48 58 FHSA provider must request FHSA holder to quote tax file number if not quoted previously....................................................... 48 59 No obligation to quote tax file number ............................................. 49 60 Use of tax file number for certain purposes...................................... 49 61 FHSA provider must inform other FHSA provider or superannuation provider of tax file number for certain purposes ............................................................................................ 51 Subdi vision B--Method of quotation of tax file numbers, including deemed quotation 52 62 M ethod of quoting tax file number ................................................... 52 63 FHSA holder taken to have quoted where Commissioner gives notice ....................................................................................... 53 64 Information provided by FHSA provider taken to have been provided by FHSA holder................................................................. 53 65 FHSA holder or applicant taken to have quoted if he or she quoted for other purposes ................................................................. 53 Subdi vision C--Incorrect quotation of tax file number 54 66 Effect of mistaken quotation of tax file number ............................... 54 67 Effect of invalid quotation of tax file number .................................. 54 Subdi vision D--Provision of tax file numbers in forms etc. 55 iii First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] 69 Failure to quote tax file number ........................................................ 56 Division 3--Secrecy 57 70 Secrecy.............................................................................................. 57 Division 4--Review of decisions 60 Subdi vision A--Review of Commissioner decisions relating to Government FHS A contri buti ons 60 71 Review of decisions .......................................................................... 60 72 Authorised review officers ............................................................... 60 73 Withdrawal of review applications ................................................... 60 Subdi vision B--Review of certai n APRA decisions 61 74 Reviewable decision ......................................................................... 61 75 Review of certain decisions .............................................................. 62 76 Statements to accompany notification of decisions .......................... 63 Part 6--Enforce ment 65 Division 1--Information gathering 65 77 Commissioner may require person or legal representative to give information................................................................................ 65 78 Commissioner may require FHSA provider to give information ....................................................................................... 66 79 Self-incrimination ............................................................................. 67 Division 2--Access to premises 68 80 Appointment of authorised persons .................................................. 68 81 Powers of authorised person in relation to premises ........................ 68 82 Obligations of authorised persons--all cases ................................... 69 83 Obligations of authorised persons--entry by consent ...................... 69 84 Obligations of authorised persons--entry by warrant ...................... 69 85 Obstruction of authorised person acting under a warrant ................. 70 86 Persons to assist authorised persons acting under a warrant ............ 70 87 Issue of warrant to enter premises .................................................... 71 88 Identity cards .................................................................................... 72 Part 7--Prudential provisions 73 Division 1--Authorisation of RSE licensees as FHSA providers 73 Subdi vision A--Appl ying for authorisation as FHS A provi der 73 89 RSE licensee applications for authorisation as FHSA providers ........................................................................................... 73 90 APRA may request further information ........................................... 73 91 Period within which application is to be decided ............................. 74 First Home Saver Accounts Bill 2008 No. , 2008 iv [Page Break] 92 Grant of authorisation as FHSA provider ......................................... 74 93 Capital requirements ......................................................................... 75 94 Documents required to bear ABN .................................................... 76 95 When an authorisation is in force ..................................................... 76 96 APRA to give notice of refusal of applications ................................ 77 Subdi vision C--Conditi ons on authorisation as FHS A provi der 77 97 Conditions imposed on all authorisations......................................... 77 98 Additional conditions imposed by APRA on individual authorisations .................................................................................... 78 99 Directions to comply with conditions on authorisation .................... 79 Subdi vision D--Vari ation or revocati on of condi tion on authorisation as FHSA provi der 79 100 Applications for variation or revocation of condition on authorisation as FHSA provider ....................................................... 79 101 APRA may request further information ........................................... 80 102 Period for deciding applications ....................................................... 80 103 APRA may vary or revoke conditions on authorisation--in accordance with application ............................................................. 81 104 APRA may vary or revoke conditions on authorisation--on its own initiative ............................................................................... 82 105 Notification of APRA's decisions under this Division..................... 83 106 When variations or revocations come into force etc. ....................... 83 Subdi vision E--Cancelling authorisation as FHS A provi der 84 107 Cancellation of authorisation as FHSA provider.............................. 84 108 Cancellation of authorisation for FHSA provider that is financial services licensee................................................................. 84 109 APRA may allow authorisation as FHSA provider to continue in effect .............................................................................. 85 Subdi vision F--Offences and self-incri mination 85 110 Providing an FHSA while unauthorised etc. .................................... 85 111 Failing to notify breach of condition on authorisation ..................... 86 112 Not complying with direction to comply with condition on authorisation ..................................................................................... 87 113 Breach does not affect validity of issue of FHSA etc....................... 87 Division 2--Application of the Superannuation Industry (Supervision) Act 1993 88 114 M odified application of the Superannuation Industry (Supervision) Act 1993 ..................................................................... 88 115 Provisions of the Superannuation Industry (Supervision) Act 1993 that do not apply ...................................................................... 89 v First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Superannuation Industry (Supervision) Act 1993 ............................. 89 117 References to Prudential Standards .................................................. 90 118 Persons who may be appointed to be custodians of FHSA trusts--approved guarantee etc......................................................... 91 119 Transfer of FHSA trusts.................................................................... 91 120 Covenants to be included in governing rules--investment management ...................................................................................... 91 Division 3--Prudential Standards 93 121 Prudential Standards ......................................................................... 93 122 Notice of determination, variation or revocation of certain Prudential Standards ......................................................................... 94 Division 4--Other prudential provisions 95 123 Requirement for ADIs and life insurance companies to notify APRA of intention to provide FHSAs .............................................. 95 124 Obligations of FHSA providers in relation to certain life policies .............................................................................................. 95 125 Protection for small balances ............................................................ 96 Part 8--Miscellaneous 98 126 Annual reports .................................................................................. 98 127 Civil immunity where defendant was complying with this Act..................................................................................................... 98 128 Payment out of a fund in accordance with the Bankruptcy Act 1966 ............................................................................................ 98 129 Compensation for acquisition of property ........................................ 99 130 State insurance .................................................................................. 99 131 Regulations ....................................................................................... 99 First Home Saver Accounts Bill 2008 No. , 2008 vi [Page Break] 2 accounts, and for related purposes 3 The Parliament of Australia enacts: 4 Part 1--Preliminary 5 Division 1--General 6 1 Short title 7 This Act may be cited as the First Home Saver Accounts Act 2008. 8 2 Commence ment 9 This Act commences on the day after it receives the Royal Assent. First Home Saver Accounts Bill 2008 No. , 2008 1 [Page Break] Di vision 1 General Section 3 1 3 General administration of Act 2 (1) The Commissioner has the general administration of the following 3 provisions of this Act: 4 (a) Part 3; 5 (b) Part 4; 6 (c) Part 5 (other than Subdivision B of Division 4); 7 (d) Part 6. 8 (2) APRA has the general administration of the following provisions 9 of this Act: 10 (a) Subdivision B of Division 4 of Part 5; 11 (b) Part 7 (subject to subsection (3). 12 (3) ASIC has the general administration of Division 2 of Part 7 of this 13 Act, to the extent that section 6 of the Superannuation Industry 14 (Supervision) Act 1993 (as that section applies under subsection 15 114(2) of this Act) confers powers and duties on ASIC. 16 4 Application of Act not to be excluded or modified 17 This Act applies in relation to an FHSA despite any provision in 18 the terms and conditions of the FHSA, including any provision that 19 purports to substitute, or has the effect of substituting, the 20 provisions of the law of a State or Territory or of a foreign country 21 for all or any of the provisions of this Act. 22 5 Act extends to external Territories 23 This Act extends to every external Territory. 24 6 Crown to be bound 25 (1) This Act binds the Crown in each of its capacities. 26 (2) This Act does not make the Crown liable to be prosecuted for an 27 offence. 28 2 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Simp lified outline Di vision 2 Section 7 1 2 Division 2--Simplified outline 3 7 Simplified outline 4 The following is a simplified outline of this Act: 5 This Act provides for first home saver accounts, or 6 FHSAs, to be offered by certain financial institutions. 7 It deals with who is eligible to hold an FHSA, limits on 8 contributions to FHSAs and when payments can be made 9 from an FHSA. 10 Provision is made for an annual Government contribution 11 to be paid to an FHSA if certain conditions are met. 12 Payments from FHSAs are subject to conditions under this 13 Act, such as a requirement to use a payment towards the 14 purchase of a first home. 15 Failure to comply with the payment conditions can make a 16 person liable to FHSA misuse tax under the Income Tax 17 Assessment Act 1997. The tax may also apply if the person 18 holds an FHSA while ineligible to do so. 19 This Act also provides for the approval of entities that can 20 offer FHSAs (other than ADIs and life insurance 21 companies) and for the supervision of the FHSA business 22 of those entities. 23 The general prudential supervision of ADIs and life 24 insurance companies that offer FHSAs is not dealt with in 25 this Act, but is dealt with instead under the Banking Act 26 1959 and the Life Insurance Act 1995. 27 FHSAs are also subject to concessional treatment in 28 respect of income tax and social security benefits. This First Home Saver Accounts Bill 2008 No. , 2008 3 [Page Break] Di vision 2 Simplified outline Section 7 1 treatment is similar to that of superannuation. It is not dealt 2 with in this Act, but is dealt with instead under the Income 3 Tax Assessment Act 1997, the Social Security Act 1991 and 4 the Veterans' Entitlements Act 1986. 5 4 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Key concepts Di vision 1 Section 8 1 2 Part 2--Key concepts and other definitions 3 Division 1--Key concepts 4 8 Meaning of FHSA 5 An individual's account, life policy or beneficial interest in a trust 6 is an FHSA (short for first home saver account) if: 7 (a) it is described as an FHSA; and 8 (b) it is opened or issued on or after 1 October 2008 (or a later 9 day (if any) specified in the regulations); and 10 (c) it is: 11 (i) an account to which an ADI accepts, or has accepted, 12 contributions; or 13 (ii) a life policy issued by a life insurance company; or 14 (iii) a beneficial interest in a trust constituted by a deed, the 15 trustee of which holds an authorisation as an FHSA 16 provider. 17 9 Meanings of hold and FHSA holder 18 (1) A person holds an FHSA if: 19 (a) for an FHSA that is an account--the account is opened solely 20 in the person's name; or 21 (b) for an FHSA that is a life policy--the person is the sole 22 owner of the life policy; or 23 (c) for an FHSA that is a beneficial interest in a trust--the 24 person is the sole holder of the interest. 25 (2) A person who holds an FHSA is an FHSA holder. 26 10 Meanings of provide and FHSA provider 27 (1) An entity provides an FHSA if: 28 (a) for an FHSA that is an account--the entity is the ADI that 29 accepts, or has accepted, contributions to the account; or First Home Saver Accounts Bill 2008 No. , 2008 5 [Page Break] Di vision 1 Key concepts Section 11 1 (b) for an FHSA that is a life policy--the entity is the life 2 insurance company that provides the policy; or 3 (c) for an FHSA that is a beneficial interest in a trust--the entity 4 is the trustee of the trust. 5 (2) An entity that provides an FHSA is an FHSA provider. 6 11 Meanings of Government FHSA contribution and personal FHSA 7 contribution 8 (1) A contribution to an FHSA or other payment by the Commissioner 9 that is payable under Part 4 of this Act for a person is a 10 Government FHSA contribution of the person. 11 (2) A contribution that a person makes, or that is made for the benefit 12 of the person, to an FHSA held by the person is a personal FHSA 13 contribution of the person (unless the contribution is a 14 Government FHSA contribution of the person). 15 (3) However, a contribution to an FHSA held by a person is not a 16 personal FHSA contribution of the person if: 17 (a) the contribution is by way of transfer to the FHSA from 18 another FHSA held by the person; or 19 (b) the contribution is made because of a family law obligation; 20 or 21 (c) the following conditions are satisfied: 22 (i) an FHSA home acquisition payment was previously 23 made from an FHSA held by the person; 24 (ii) the payment satisfies the FHSA payment conditions 25 because of subsection 17(3) (recontribution of FHSA 26 home acquisition payment after failure to occupy a 27 dwelling); 28 (iii) the contribution to the FHSA is by way of a 29 recontribution of the FHSA home acquisition payment; 30 or 31 (d) the payment is repaid from the FHSA in accordance with: 32 (i) subsection 25(2), 26(2) or 27(2); or 33 (ii) subsection 992A(4) (unsolicited offer of financial 34 product), section 1016F (defective product disclosure 6 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Key concepts Di vision 1 Section 12 1 document) or section 1019B (cooling-off period) of the 2 Corporations Act 2001. 3 12 Meaning of qualifying interest in a dwelling 4 (1) A person holds a qualifying interest in a dwelling if the person is 5 the legal owner of the dwelling (whether alone or together with 6 others). 7 (2) Without limiting the scope of subsection (1), a person holds a 8 qualifying interest in a dwelling if: 9 (a) the person is a lessee or licensee (whether alone or together 10 with others) under a lease or licence that gives the person 11 reasonable security of tenure over the dwelling; and 12 (b) in the case of a lease--the lease is a Crown lease (within the 13 meaning of the Income Tax Assessment Act 1997); and 14 (c) in the case of a licence--the licence was granted by the 15 Commonwealth, a State or a Territory. 16 (3) Without limiting the scope of subsection (1), a person holds a 17 qualifying interest in a dwelling if: 18 (a) the person holds an equity of redemption in respect of the 19 dwelling; or 20 (b) where the dwelling is a flat or home unit--the person is the 21 legal owner of a share that: 22 (i) is in a company that is the legal owner of the land on 23 which the flat or home unit is erected; and 24 (ii) gives the person a right to occupy the flat or home unit; 25 or 26 (c) where the dwelling is in an aged care facility or retirement 27 village--the person holds a right for him or her to occupy the 28 dwelling. 29 (4) A person also holds a qualifying interest in a dwelling if 30 circumstances exist as specified in regulations made for the 31 purposes of this subsection. 32 (5) Despite anything else in the section, a person does not hold a 33 qualifying interest in a dwelling if: 34 (a) the dwelling is not fixed to land; or First Home Saver Accounts Bill 2008 No. , 2008 7 [Page Break] Di vision 1 Key concepts Section 13 1 (b) circumstances exist as specified in regulations made for the 2 purposes of this paragraph. 3 (6) A person acquires a qualifying interest in a dwelling when he or 4 she starts to hold a qualifying interest in the dwelling. 5 13 Meaning of main residence 6 (1) Subject to this section, a reference in this Act to a person's main 7 residence has its ordinary meaning. 8 (2) The regulations may specify circumstances in which a dwelling is a 9 person's main residence for the purposes of this Act. 10 (3) The regulations may specify circumstances in which a dwelling is 11 not a person's main residence for the purposes of this Act. 12 14 Meaning of FHSA home acquisition payment 13 A payment from an FHSA is an FHSA home acquisition payment 14 if the FHSA provider must make the payment under section 32 15 (payments for the purposes of acquiring a qualifying interest in a 16 dwelling). 17 15 Meaning of FHSA eligibility requirements 18 (1) A person meets the FHSA eligibility requirements if: 19 (a) the person is an individual; and 20 (b) the person is aged at least 18 years and under 65 years; and 21 (c) the person has never held a qualifying interest in a dwelling 22 in Australia or Norfolk Island at a time when the dwelling 23 was the person's main residence; and 24 (d) the person has never held an FHSA when the person was 25 aged less than 18 years; and 26 (e) either: 27 (i) the person has never held more than one FHSA at a 28 time; or 29 (ii) the person has held 2 FHSAs at a time, and the balance 30 of one of the FHSAs was transferred to the other FHSA 31 as the initial contribution to the other FHSA; and 8 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Key concepts Di vision 1 Section 16 1 (f) either: 2 (i) the person has never held an FHSA that was closed; or 3 (ii) the requirement in subsection (2) is met for each FHSA 4 that the person has held that was closed; and 5 (g) the person meets the requirements (if any) specified in the 6 regulations. 7 (2) The requirement in this subsection is met for an FHSA if: 8 (a) the FHSA was closed following an FHSA home acquisition 9 payment that met the FHSA payment conditions in 10 subsection 17(3) (recontribution to an FHSA after failure to 11 occupy a dwelling); or 12 (b) the FHSA was closed following an FHSA home acquisition 13 payment, and it is still possible for the payment to meet the 14 FHSA payment conditions in subsection 17(3); or 15 (c) the FHSA was closed as a result of a repayment made in 16 accordance with subsection 992A(4) (unsolicited offer of 17 financial product), section 1016F (defective product 18 disclosure document) or section 1019B (cooling-off period) 19 of the Corporations Act 2001. 20 16 Meaning of FHSA ineligibility payment 21 A payment from an FHSA held by a person is an FHSA 22 ineligibility payment if: 23 (a) the payment is an FHSA home acquisition payment; and 24 (b) the person did not satisfy the FHSA eligibility requirements 25 when the payment was made. 26 Note: This Act does not provide for the consequences of the payment being 27 an FHSA ineligibility payment. However, the FHSA holder will be 28 liable for FHSA misuse tax in accordance with Subdivision 345-C of 29 the Income Tax Assessment Act 1997. 30 17 Meaning of FHSA payment conditions 31 (1) An FHSA home acquisition payment satisfies the FHSA payment 32 conditions if: 33 (a) no later than 6 months after the payment is made, the person 34 who holds or held the FHSA uses an amount equal to the First Home Saver Accounts Bill 2008 No. , 2008 9 [Page Break] Di vision 1 Key concepts Section 17 1 payment in acquiring a qualifying interest in a dwelling in 2 Australia or Norfolk Island; and 3 (b) the dwelling is the person's main residence for a continuous 4 period that: 5 (i) is at least 6 months long; and 6 (ii) starts within the period mentioned in subsection (2); and 7 (c) if the construction of the dwelling is not complete when the 8 payment is made--that construction is complete within a 9 reasonable period after the payment is made. 10 (2) The period: 11 (a) starts: 12 (i) if the construction of the dwelling is not complete when 13 the payment is made--when the construction of the 14 dwelling is complete; or 15 (ii) otherwise--when the person acquires the qualifying 16 interest in the dwelling; and 17 (b) ends 12 months after the period starts, or at a later time that 18 the Commissioner considers reasonable in the circumstances. 19 (3) An FHSA home acquisition payment also satisfies the FHSA 20 payment conditions if: 21 (a) the person who holds or held the FHSA fails to satisfy the 22 conditions in subsection (1); and 23 (b) within 6 months after the payment was made, the person 24 contributes to an FHSA held by the person: 25 (i) an amount equal to the payment; or 26 (ii) a lesser amount that is reasonable to pay in the 27 circumstances. 28 (4) For the purposes of subparagraph (3)(b)(ii), in determining whether 29 it is reasonable to pay a lesser amount in the circumstances, have 30 regard to: 31 (a) whether the failure to satisfy the conditions in subsection (1) 32 was beyond the person's control; and 33 (b) whether that failure was reasonably foreseeable by the 34 person; and 10 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Key concepts Di vision 1 Section 17 1 (c) whether any previous FHSA home acquisition payment in 2 respect of the person has failed to satisfy the conditions in 3 subsection (1); and 4 (d) any other relevant matter. 5 First Home Saver Accounts Bill 2008 No. , 2008 11 [Page Break] Di vision 2 Other definit ions Section 18 1 2 Division 2--Other definitions 3 18 Definitions 4 In this Act: 5 ABN (short for Australian Business Number) has the meaning 6 given by section 41 of the A New Tax System (Australian Business 7 Number) Act 1999. 8 account balance cap has the meaning given by section 29. 9 acquire: a person acquires a qualifying interest in a dwelling in the 10 circumstances mentioned in subsection 12(6). 11 ADI (short for authorised deposit-taking institution) means a body 12 corporate that is an ADI for the purposes of the Banking Act 1959. 13 approved form means a form approved by the Regulator, in 14 writing, for the purposes of the provision in which the expression 15 appears. 16 APRA means the Australian Prudential Regulation Authority. 17 ASIC means the Australian Securities and Investments 18 Commission. 19 authorisation as an FHSA provider means an authorisation 20 granted under section 92. 21 authorised person means a person appointed as an authorised 22 person under section 80. 23 base interest rate for a day has the same meaning as in 24 section 8AAD of the Taxation Administration Act 1953. 25 breach: an FHSA holder is in breach of the account balance cap in 26 the circumstances mentioned in section 28. 27 Commissioner means the Commissioner of Taxation. 12 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Other defin itions Di vision 2 Section 18 1 complying superannuation plan has the same meaning as in the 2 Income Tax Assessment Act 1997. 3 contribution means a contribution of money, and includes a 4 deposit into an account held at an ADI and a payment of a 5 premium to a life insurance company. 6 data processing device means any article or material (for example, 7 a disc) from which information is capable of being reproduced with 8 or without the aid of any other article or device. 9 decision includes a decision not to make a determination under 10 section 41 or 46. 11 deed includes an instrument having the effect of a deed. 12 default superannuation plan has the meaning given by section 24. 13 Deputy Commissioner means a Deputy Commissioner of Taxation. 14 examinable documents means any documents relevant to the 15 operation of a provision of this Act for which the Commissioner 16 has the general administration, or regulations made for the 17 purposes of such a provision. 18 family law obligation means: 19 (a) a court order under the Family Law Act 1975; or 20 (b) a financial agreement made under Part VIIIA of the Family 21 Law Act 1975 that is binding because of section 90G of that 22 Act. 23 FHSA (short for first home saver account) has the meaning given 24 by section 8. 25 FHSA eligibility requirements has the meaning given by 26 section 15. 27 FHSA holder has the meaning given by section 9. 28 FHSA home acquisition payment has the meaning given by 29 section 14. 30 FHSA ineligibility payment has the meaning given by section 16. First Home Saver Accounts Bill 2008 No. , 2008 13 [Page Break] Di vision 2 Other definit ions Section 18 1 FHSA payment conditions: an FHSA home acquisition payment 2 satisfies the FHSA payment conditions in the circumstances set out 3 in section 17. 4 FHSA provider has the meaning given by section 10. 5 FHSA trust means a trust of a kind mentioned in subparagraph 6 8(c)(iii). 7 financial services licensee has the meaning given by Chapter 7 of 8 the Corporations Act 2001. 9 financial year has the same meaning as in the Income Tax 10 Assessment Act 1997. 11 function includes duty. 12 general interest charge means the charge worked out under 13 Part IIA of the Taxation Administration Act 1953. 14 Government FHSA contribution has the meaning given by 15 section 11. 16 Government FHSA contribution threshold has the meaning given 17 by section 39. 18 hold: 19 (a) a person holds an FHSA in the circumstances mentioned in 20 section 9; and 21 (b) a person holds a qualifying interest in a dwelling in the 22 circumstances mentioned in section 12. 23 inactive: an FHSA is inactive in the circumstances mentioned in 24 section 23. 25 income tax return means: 26 (a) a return under section 161, 162 or 163 of the Income Tax 27 Assessment Act 1936; or 28 (b) a return by the trustee of a deceased person's estate under 29 Subdivision 260-E of Schedule 1 to the Taxation 30 Administration Act 1953. 14 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Other defin itions Di vision 2 Section 18 1 income year has the same meaning as in the Income Tax 2 Assessment Act 1997. 3 indexation factor has the meaning given by subsections 30(3) and 4 40(3). 5 index number has the meaning given by subsections 30(5) and 6 40(5). 7 legal personal representative has the same meaning as in the 8 Income Tax Assessment Act 1997. 9 life insurance company means a company registered under the 10 Life Insurance Act 1995. 11 life policy has the same meaning as in the Life Insurance Act 1995. 12 main residence has the meaning given by section 13. 13 overpaid amount has the meaning given by subsection 50(2). 14 owner, in relation to a policy, has the same meaning as in the Life 15 Insurance Act 1995. 16 person affected by a reviewable decision, in relation to a 17 reviewable decision, means the person in relation to which the 18 decision was made. 19 personal FHSA contribution has the meaning given by section 11. 20 policy has the same meaning as in the Life Insurance Act 1995. 21 produce includes permit access to. 22 protected information means information that: 23 (a) concerns a person; and 24 (b) is disclosed to, or obtained by, a person to whom section 70 25 applies in the course of, or because of, the person's duties 26 under or in relation to this Act or the regulations. 27 provides has the meaning given by section 10. 28 Prudential Standards has the meaning given by subsection 121(1). First Home Saver Accounts Bill 2008 No. , 2008 15 [Page Break] Di vision 2 Other definit ions Section 18 1 public offer entity has the same meaning as in the Superannuation 2 Industry (Supervision) Act 1993. 3 qualifying interest in a dwelling has the meaning given by 4 section 12. 5 quarter has the same meaning as in the Income Tax Assessment Act 6 1997. 7 Regulator means: 8 (a) APRA, if the provision in which it occurs is, or is being 9 applied for the purposes of, a provision that is administered 10 by APRA; or 11 (b) ASIC, if the provision in which it occurs is, or is being 12 applied for the purposes of, a provision that is administered 13 by ASIC; or 14 (c) the Commissioner, if the provision in which it occurs is, or is 15 being applied for the purposes of, a provision that is 16 administered by the Commissioner. 17 reporting period has the same meaning as in subsection 1017D(2) 18 of the Corporations Act 2001. 19 reviewable decision has the meaning given by section 74. 20 RSE licence has the same meaning as in the Superannuation 21 Industry (Supervision) Act 1993. 22 RSE licensee has the same meaning as in the Superannuation 23 Industry (Supervision) Act 1993. 24 Second Commissioner means a Second Commissioner of 25 Taxation. 26 spouse has the same meaning as in the Superannuation Industry 27 (Supervision) Act 1993. 28 Superannuation Acts means: 29 (a) the Retirement Savings Accounts Act 1997; and 30 (b) the Superannuation Industry (Supervision) Act 1993; and 31 (c) the Superannuation Contributions Tax (Assessment and 32 Collection) Act 1997; and 16 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Other defin itions Di vision 2 Section 18 1 (d) the Superannuation Contributions Tax (Members of 2 Constitutionally Protected Superannuation Funds) 3 Assessment and Collection Act 1997; and 4 (e) the Superannuation (Unclaimed Money and Lost Members) 5 Act 1999; and 6 (f) the Termination Payments Tax (Assessment and Collection) 7 Act 1997. 8 superannuation interest has the same meaning as in the Income 9 Tax Assessment Act 1997. 10 superannuation provider has the same meaning as in the Income 11 Tax Assessment Act 1997. 12 taxation law has the same meaning as in the Income Tax 13 Assessment Act 1997. 14 tax file number has the meaning given by section 202A of the 15 Income Tax Assessment Act 1936. 16 underpaid amount has the meaning given by subsection 46(2). 17 First Home Saver Accounts Bill 2008 No. , 2008 17 [Page Break] Di vision 1 Eligib ility ru les Section 19 1 2 Part 3--Eligibility, contribution and payment rules 3 Division 1--Eligibility rules 4 19 Obligation of FHSA provide r in opening or issuing FHSA 5 (1) An FHSA provider must not open or issue an FHSA for a person 6 unless: 7 (a) the person has given the provider an application in the 8 approved form; and 9 (b) the application states that: 10 (i) the person meets the FHSA eligibility requirements; and 11 (ii) if the person already holds an FHSA--the person will 12 ensure that the balance of the FHSA will be transferred 13 to the FHSA to be opened or issued; and 14 (iii) if the person held an FHSA that was closed, and 15 nevertheless meets the FHSA eligibility requirements 16 because of paragraph 15(2)(b)--the initial contribution 17 to the FHSA to be opened or issued will be made in 18 accordance with paragraph 17(3)(b); and 19 (c) the person has quoted his or her tax file number to the 20 provider in connection with the operation of this Act and the 21 Superannuation Acts. 22 Note: M aking a false statement in the application may constitute an offence: 23 see subsection 8J(9) and sections 8K and 8N of the Taxation 24 Administration Act 1953. 25 Offence 26 (2) A person commits an offence if the person contravenes 27 subsection (1). 28 Penalty: 100 penalty units. 29 Validity of transaction not affected by contravention 30 (3) A contravention of subsection (1) does not affect the validity of a 31 transaction. 18 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Eligibility rules Di vision 1 Section 20 1 20 FHSA holder must notify provide r if he or s he does not satisfy 2 the FHSA eligibility requirements 3 (1) The holder of an FHSA must give the FHSA provider a notice in 4 the approved form in accordance with this section if circumstances 5 arise resulting in the FHSA holder not satisfying the FHSA 6 eligibility requirements. 7 Note: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 8 provides an administrative penalty for a breach of this subsection. A 9 breach of this subsection may also be an offence under section 8C of 10 that Act. 11 (2) The FHSA holder must give the notice within 30 days after the 12 circumstances arise. 13 (3) However, the FHSA holder need not give the notice if: 14 (a) the FHSA is closed within 30 days after the circumstances 15 arise; or 16 (b) the FHSA provider must pay an amount from the FHSA 17 under section 32 (FHSA home acquisition payment) because 18 the FHSA holder requests the FHSA provider within 30 days 19 after the circumstances arise to do so. 20 (4) The notice must contain: 21 (a) if the FHSA holder is aged 60 or over and wants the balance 22 of the FHSA paid to him or her--a statement to that effect; or 23 (b) otherwise--an authority for the FHSA provider to contribute 24 the balance of the FHSA to a superannuation interest of the 25 FHSA holder in a complying superannuation plan. 26 (5) The FHSA holder may give the FHSA provider a written 27 revocation of the notice if: 28 (a) the FHSA holder becomes satisfied that he or she satisfies the 29 FHSA eligibility requirements; and 30 (b) 30 days have not yet elapsed since the FHSA holder gave the 31 FHSA provider the notice; and 32 (c) the FHSA has not yet been closed in accordance with 33 paragraph 22(2)(b). First Home Saver Accounts Bill 2008 No. , 2008 19 [Page Break] Di vision 1 Eligib ility ru les Section 21 1 21 Commissioner must notify provider if reason to believe that 2 certain circumstances exist 3 (1) The Commissioner must give the provider of an FHSA a notice in 4 accordance with this section if the Commissioner has reason to 5 believe that the FHSA holder does not satisfy the FHSA eligibility 6 requirements. 7 Note: The Commissioner may give the provider a notice under subsection 8 67(2) if a correct TFN was not quoted for the FHSA holder. 9 (2) If the Commissioner gives a notice under subsection (1), the 10 Commissioner must give a copy of the notice to the FHSA holder. 11 (3) The notice must describe the operation of the following provisions 12 that results from the notice being given: 13 (a) section 22 (requirement to close inactive FHSA); 14 (b) section 26 (limit on contributions to inactive FHSA); 15 (c) sections 32 and 35 (limit on payments from FHSA). 16 (4) The Commissioner must give the FHSA provider a written 17 revocation of the notice if: 18 (a) the Commissioner becomes satisfied that the FHSA holder 19 satisfies the FHSA eligibility requirements; and 20 (b) 30 days have not yet elapsed since the Commissioner gave 21 the FHSA provider the notice; and 22 (c) the FHSA has not yet been closed in accordance with 23 paragraph 22(2)(b). 24 (5) If the Commissioner gives a revocation under subsection (4), the 25 Commissioner must give a copy of it to the FHSA holder. 26 22 FHSA provider to close inactive FHSA 27 (1) This section applies if: 28 (a) an FHSA becomes inactive under subsection 23(1), and the 29 FHSA provider has not received a revocation of the notice 30 mentioned in that subsection before the 30th day (the trigger 31 day) after the FHSA provider received the notice; or 32 (b) an FHSA becomes inactive under subsection 23(2), (3) or (4) 33 on a particular day (also the trigger day). 20 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Eligibility rules Di vision 1 Section 23 1 (2) The FHSA provider must, within 14 days after the trigger day: 2 (a) pay the entire balance of the FHSA to: 3 (i) if the FHSA holder is aged 60 or over and has given the 4 FHSA provider a statement that he or she wants the 5 balance of the FHSA to be paid to him or her--the 6 FHSA holder; or 7 (ii) otherwise--the superannuation interest mentioned in 8 subsection (3); and 9 (b) close the FHSA. 10 Note: If the FHSA holder becomes bankrupt, this section does not prevent a 11 payment from the FHSA that is property divisible amongst the 12 holder's creditors (see section 128). 13 (3) The superannuation interest is: 14 (a) if, for the purposes this paragraph, the FHSA holder has 15 notified the FHSA provider in writing of a particular 16 superannuation interest of the holder in a complying 17 superannuation plan--that superannuation interest; or 18 (b) otherwise--to a superannuation interest for the benefit of the 19 FHSA holder in the FHSA provider's default superannuation 20 plan (see section 24). 21 Offence 22 (4) A person commits an offence if the person contravenes 23 subsection (2). 24 Penalty: 100 penalty units. 25 Validity of transaction not affected by contravention 26 (5) A contravention of subsection (2) does not affect the validity of a 27 transaction. 28 23 Inactive FHSA 29 (1) An FHSA is inactive if the provider of the FHSA: 30 (a) has received a notice from the FHSA holder in accordance 31 with subsection 20(1) (and has not received a revocation of 32 that notice under subsection 20(5)); or First Home Saver Accounts Bill 2008 No. , 2008 21 [Page Break] Di vision 1 Eligib ility ru les Section 24 1 (b) has received a notice from the Commissioner in accordance 2 with subsection 21(1) (and has not received a revocation of 3 that notice under subsection 21(4)); or 4 (c) has received a notice from the Commissioner in accordance 5 with subsection 67(2) (and has not received a revocation of 6 that notice). 7 (2) An FHSA is also inactive if: 8 (a) the provider of the FHSA makes a payment from the FHSA; 9 and 10 (b) the provider must make the payment under: 11 (i) section 32 (FHSA home acquisition payment); or 12 (ii) section 33 (FHSA holder aged 60 or over); and 13 (c) the balance of the FHSA immediately after the payment is 14 more than nil. 15 (3) An FHSA is also inactive if the holder of the FHSA is 65 years of 16 age or over. 17 (4) An FHSA is also inactive if: 18 (a) the FHSA was opened or issued for a person because he or 19 she made a statement in an application, in accordance with 20 subparagraph 19(1)(b)(ii), that he or she would ensure that 21 the balance of another FHSA held by him or her would be 22 transferred to the FHSA; and 23 (b) a period of 44 days has elapsed since the FHSA was opened 24 or issued; and 25 (c) the transfer did not take place within that period. 26 24 Default superannuation plan 27 (1) An entity that provides an FHSA or offers to provide an FHSA at a 28 time must have nominated in writing, before that time, a complying 29 superannuation plan to be its default superannuation plan for the 30 purposes of paragraph 22(3)(b). 31 Offence 32 (2) A person commits an offence if the person contravenes 33 subsection (1). 22 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Eligibility rules Di vision 1 Section 24 1 Penalty: 100 penalty units. 2 First Home Saver Accounts Bill 2008 No. , 2008 23 [Page Break] Di vision 2 Contributions to FHSAs Section 25 1 2 Division 2--Contributions to FHSAs 3 25 Limit on contributions to FHSAs--account holder aged 65 or 4 over 5 (1) The provider of an FHSA must not allow an amount to be 6 contributed to the FHSA if the holder of the account is aged 65 or 7 older. 8 Note: In these circumstances the Commissioner may be able to pay a 9 Government FHSA contribution directly to the FHSA holder (see 10 section 41). 11 (2) The FHSA provider does not contravene subsection (1) if the 12 provider repays the amount from the FHSA to the FHSA holder 13 within 30 days after receiving it. 14 Offence 15 (3) A person commits an offence if the person contravenes 16 subsection (1). 17 Penalty: 100 penalty units. 18 Validity of transaction not affected by contravention 19 (4) A contravention of subsection (1) does not affect the validity of a 20 transaction. 21 26 Limit on contributions to FHSAs--inactive FHSA 22 (1) The provider of an FHSA must not allow an amount to be 23 contributed to the FHSA if it is inactive. 24 (2) The FHSA provider does not contravene subsection (1) if the 25 provider repays the amount from the FHSA to the FHSA holder 26 within 30 days after receiving it. 24 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Contributions to FHSAs Di vision 2 Section 27 1 Offence 2 (3) A person commits an offence if the person contravenes 3 subsection (1). 4 Penalty: 100 penalty units. 5 Validity of transaction not affected by contravention 6 (4) A contravention of subsection (1) does not affect the validity of a 7 transaction. 8 27 Limit on contributions to FHSAs--holde r in breach of account 9 balance cap 10 (1) The provider of an FHSA must not allow an amount to be 11 contributed to the FHSA at a time if: 12 (a) either: 13 (i) the FHSA holder is in breach of the account balance cap 14 at the time the amount is to be paid; or 15 (ii) the FHSA holder would be in breach of the account 16 balance cap at that time if the amount were paid; and 17 (b) the contribution would not be: 18 (i) a Government FHSA contribution; or 19 (ii) a contribution mentioned in paragraph 11(3)(a) (transfer 20 to the FHSA from another FHSA held by the FHSA 21 holder); or 22 (iii) a contribution mentioned in paragraph 11(3)(c) 23 (recontribution of FHSA home acquisition payment 24 after failure to occupy a dwelling). 25 Note: This subsection does not prevent the FHSA provider from allowing 26 part of a sum paid to it to be contributed to the FHSA. 27 (2) The FHSA provider does not contravene subsection (1) if the 28 provider repays the amount from the FHSA to the FHSA holder 29 within 30 days after receiving it. First Home Saver Accounts Bill 2008 No. , 2008 25 [Page Break] Di vision 2 Contributions to FHSAs Section 28 1 Offence 2 (3) A person commits an offence if the person contravenes 3 subsection (1). 4 Penalty: 100 penalty units. 5 Validity of transaction not affected by contravention 6 (4) A contravention of subsection (1) does not affect the validity of a 7 transaction. 8 28 Breach of account balance cap 9 (1) If the balance of an FHSA at a time exceeds the account balance 10 cap for the financial year in which that time occurs, the person who 11 holds the FHSA is in breach of the account balance cap: 12 (a) at that time; and 13 (b) at all later times (subject to this section). 14 Note: The FHSA holder is in breach of the account balance cap at a later 15 time even if the balance of his or her FHSA falls short of the account 16 balance cap for the financial year in which that later time occurs. 17 (2) However, the person is not in breach of the account balance cap 18 during the period mentioned in subsection (3) if: 19 (a) the person applies to open or be issued with an FHSA; and 20 (b) the initial contribution to the FHSA to be opened or issued 21 will be made in accordance with paragraph 17(3)(b) 22 (recontribution of FHSA home acquisition payment after 23 failure to occupy a dwelling). 24 (3) The period: 25 (a) starts when the FHSA mentioned in paragraph (2)(a) is 26 opened or issued; and 27 (b) ends at the first time when the balance of that FHSA (or any 28 other FHSA later held by the person) exceeds the account 29 balance cap for the financial year in which that time occurs. 30 (4) The person is also not in breach of the account balance cap during 31 the period mentioned in subsection (5) if: 26 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Contributions to FHSAs Di vision 2 Section 29 1 (a) a payment of a kind mentioned in paragraph 31(1)(c) 2 (payments because of a family law obligation) is made from 3 an FHSA held by the person; and 4 (b) the balance of that FHSA immediately after the payment is 5 less than the account balance cap for the financial year in 6 which the payment is made. 7 (5) The period: 8 (a) starts when the payment is made; and 9 (b) ends at the first time when the balance of that FHSA (or any 10 other FHSA later held by the person) exceeds the account 11 balance cap for the financial year in which that time occurs. 12 29 Account balance cap 13 The account balance cap for the 2008-09 financial year is 14 $75,000. This amount is indexed annually. 15 Note: Section 30 shows how to index this cap. However, the cap only moves 16 by increments of $5,000. 17 30 Indexation of account balance cap 18 (1) The amount of the account balance cap is indexed annually by: 19 (a) multiplying the amount for the 2008-09 financial year by its 20 indexation factor; and 21 (b) rounding the result in paragraph (a) down to the nearest 22 multiple of $5,000. 23 (2) The account balance cap is not indexed if its indexation factor is 1 24 or less. 25 (3) The indexation factor is: Index number mentioned in subsection (5) for the quarter ending on 31 December just before the start of the relevant financial year 26 Index number mentioned in subsection (5) for the quarter ending on 31 December 2007 27 (4) The indexation factor mentioned in subsection (3) is calculated to 3 28 decimal places (rounding up if the fourth decimal place is 5 or 29 more). First Home Saver Accounts Bill 2008 No. , 2008 27 [Page Break] Di vision 2 Contributions to FHSAs Section 30 1 (5) The index number for a quarter is the estimate of full-time adult 2 average weekly ordinary time earnings for the middle month of the 3 quarter first published by the Australian Statistician for that month. 4 28 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Restrictions on payments from FHSAs Di vision 3 Section 31 1 2 Division 3--Restrictions on payments from FHSAs 3 31 FHSA provider must not make payment from FHSA unless 4 authorised by law etc. 5 (1) The provider of an FHSA must not make a payment from the 6 FHSA unless: 7 (a) the provider must make the payment under: 8 (i) section 32 (FHSA home acquisition payment); or 9 (ii) section 33 (FHSA holder aged 60 or over); or 10 (b) the provider must make the payment under: 11 (i) subsection 22(2) (compulsory contribution of balance of 12 inactive FHSA to superannuation etc.); or 13 (ii) section 34 (voluntary contribution of balance of FHSA 14 to superannuation); or 15 (iii) section 35 (voluntary transfer of balance of FHSA to 16 another FHSA); or 17 (c) the payment is made because a family law obligation requires 18 it to be made: 19 (i) by way of a contribution to a superannuation interest of 20 the FHSA holder's spouse or former spouse in a 21 complying superannuation plan; or 22 (ii) by way of transfer to an FHSA held by the FHSA 23 holder's spouse or former spouse; or 24 (iii) to the FHSA holder's spouse or former spouse, if the 25 spouse or former spouse is aged 60 or over; or 26 (d) the payment is a repayment made in accordance with: 27 (i) subsection 25(2), 26(2) or 27(2); or 28 (ii) subsection 992A(4) (unsolicited offer of financial 29 product), section 1016F (defective product disclosure 30 document) or section 1019B (cooling-off period) of the 31 Corporations Act 2001; or 32 (e) the FHSA holder is deceased; or 33 (f) the payment is of an amount of fees owing to the FHSA 34 provider for providing the FHSA; or First Home Saver Accounts Bill 2008 No. , 2008 29 [Page Break] Di vision 3 Restrict ions on payments fro m FHSAs Section 31 1 (g) the payment is of an amount owing to the Commonwealth in 2 respect of overpayments of Government FHSA contributions. 3 Note: If the FHSA holder becomes bankrupt, this section does not prevent a 4 payment from the FHSA that is property divisible amongst the 5 holder's creditors (see section 128). 6 Offence 7 (2) A person commits an offence if the person contravenes 8 subsection (1). 9 Penalty: 100 penalty units. 10 Validity of transaction not affected by contravention 11 (3) A contravention of subsection (1) does not affect the validity of a 12 transaction. 13 30 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Requirements to make pay ments fro m FHSAs Di vision 4 Section 32 1 2 Division 4--Requirements to make payments from FHSAs 3 32 Payment from FHSA for purposes of acquiring a home 4 (1) This section applies if: 5 (a) the holder of an FHSA has given the FHSA provider an 6 application in the approved form requesting an amount to be 7 paid from the FHSA; and 8 (b) the FHSA holder has declared in the application that the 9 payment will satisfy the FHSA payment conditions 10 mentioned in subsection 17(1); and 11 (c) any of the following requirements are met: 12 (i) personal FHSA contributions of at least $1,000 per 13 financial year have been made for the FHSA holder in at 14 least 4 financial years (one of which may be the 15 financial year in which the payment is to be made); 16 (ii) the FHSA holder is in breach of the account balance 17 cap, and has held an FHSA in at least 4 financial years 18 (one of which may be the financial year in which the 19 payment is to be made); 20 (iii) the FHSA holder has declared in the application that he 21 or she will acquire a qualifying interest in a dwelling 22 together with another FHSA holder in respect of whom 23 the requirement in subparagraph (i) or (ii) is met; and 24 (d) the provider is satisfied that the requirements (if any) 25 specified in the regulations are met; and 26 (e) the FHSA is not inactive. 27 (2) The FHSA provider must pay the amount as requested: 28 (a) as soon as practicable after the application is made; and 29 (b) no later than 30 days after the application is made. 30 Offence 31 (3) A person commits an offence if the person contravenes 32 subsection (2). 33 Penalty: 100 penalty units. First Home Saver Accounts Bill 2008 No. , 2008 31 [Page Break] Di vision 4 Requirements to make payments fro m FHSAs Section 33 1 Validity of transaction not affected by contravention 2 (4) A contravention of subsection (2) does not affect the validity of a 3 transaction. 4 33 Payment from FHSA if FHSA holder aged 60 or over 5 (1) This section applies if: 6 (a) the holder of an FHSA has given the FHSA provider an 7 application in the approved form requesting an amount to be 8 paid from the FHSA; and 9 (b) the FHSA holder is aged 60 or over. 10 (2) The FHSA provider must pay the amount as requested: 11 (a) as soon as practicable after the application is made; and 12 (b) no later than 30 days after the application is made. 13 Offence 14 (3) A person commits an offence if the person contravenes 15 subsection (2). 16 Penalty: 100 penalty units. 17 Validity of transaction not affected by contravention 18 (4) A contravention of subsection (2) does not affect the validity of a 19 transaction. 20 34 Payment of FHSA balance as contribution to superannuation 21 (1) This section applies if: 22 (a) an FHSA holder requests the FHSA provider to pay the 23 balance of the FHSA by way of a contribution to a 24 superannuation interest of the FHSA holder in a complying 25 superannuation plan; and 26 (b) the request is in the approved form. 27 (2) The FHSA provider must pay the amount as requested: 28 (a) as soon as practicable after the application is made; and 29 (b) no later than 30 days after the application is made. 32 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Requirements to make pay ments fro m FHSAs Di vision 4 Section 35 1 Offence 2 (3) A person commits an offence if the person contravenes 3 subsection (2). 4 Penalty: 100 penalty units. 5 Validity of transaction not affected by contravention 6 (4) A contravention of subsection (2) does not affect the validity of a 7 transaction. 8 35 Payment of FHSA balance as transfer to another FHSA 9 (1) This section applies if: 10 (a) an FHSA holder requests the FHSA provider to pay the 11 balance of the FHSA by way of transfer to another FHSA 12 held by the FHSA holder; and 13 (b) the request is in the approved form; and 14 (c) the FHSA is not inactive. 15 (2) The FHSA provider must pay the amount as requested: 16 (a) as soon as practicable after the application is made; and 17 (b) no later than 30 days after the application is made. 18 Note: If the other FHSA is provided by another entity, the FHSA provider 19 must give that entity a statement in accordance with section 391-10 in 20 Schedule 1 to the Taxation Administration Act 1953. 21 Offence 22 (3) A person commits an offence if the person contravenes 23 subsection (2). 24 Penalty: 100 penalty units. 25 Validity of transaction not affected by contravention 26 (4) A contravention of subsection (2) does not affect the validity of a 27 transaction. 28 First Home Saver Accounts Bill 2008 No. , 2008 33 [Page Break] Di vision 1 Eligib ility for and amount of a Govern ment FHSA contribution Section 36 1 2 Part 4--Government FHSA contributions 3 Division 1--Eligibility for and amount of a Government 4 FHSA contribution 5 36 Whether a Government FHSA contribution is payable 6 (1) A Government FHSA contribution is payable under this Act for a 7 person for a financial year if: 8 (a) the person is an individual; and 9 (b) one or more personal FHSA contributions are made during 10 the financial year for the person; and 11 (c) either: 12 (i) the person has lodged an income tax return for the 13 income year corresponding to the financial year; or 14 (ii) the person has given a notice in accordance with 15 section 37 for the income year corresponding to the 16 financial year; and 17 (d) the return or notice (as the case requires) states that the 18 person satisfied the residency requirement in subsection (2) 19 for at least part of the income year corresponding to the 20 financial year; and 21 (e) the person satisfied the residency requirement in 22 subsection (2) for at least part of the income year 23 corresponding to the financial year. 24 (2) The residency requirement is that the person is a resident of 25 Australia for the purposes of the Income Tax Assessment Act 1936. 26 37 Notification of eligibility status 27 For the purposes of this Part, a person may, in the approved form, 28 notify the Commissioner that: 29 (a) the person is not required to lodge an income tax return for 30 an income year corresponding to a financial year; and 34 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Eligibility for and amount of a Govern ment FHSA contribution Di vision 1 Section 38 1 (b) the person satisfied the residency requirement in subsection 2 36(2) for at least part of that year. 3 38 Amount of Government FHSA contribution 4 (1) Work out the amount of a Government FHSA contribution for a 5 person for a financial year in accordance with this section. 6 (2) First work out the following (the covered contributions): 7 (a) add up the personal FHSA contributions that were made 8 during the financial year for the person; and 9 (b) if the total exceeds the Government FHSA contribution 10 threshold for that financial year (see section 39)--disregard 11 the excess. 12 (3) The amount of the Government FHSA contribution is the covered 13 contributions multiplied by 17%. 14 (4) If (apart from this subsection) the amount of the Government 15 FHSA contribution would be less than $20, the amount of the 16 Government FHSA contribution is increased to $20. 17 (5) If (apart from this subsection) the amount of the Government 18 FHSA contribution would fall short of a multiple of $1, the amount 19 of the Government FHSA contribution is increased by that 20 shortfall. 21 39 Government FHSA contribution threshold 22 The Government FHSA contribution threshold for the 2008-09 23 financial year is $5,000. This amount is indexed annually. 24 Note: Section 40 shows how to index this threshold. However, the threshold 25 only moves by increments of $500. 26 40 Indexation of Government FHSA contribution threshold 27 (1) The amount of the Government FHSA contribution threshold is 28 indexed annually by: 29 (a) multiplying the amount for the 2008-09 financial year by its 30 indexation factor; and First Home Saver Accounts Bill 2008 No. , 2008 35 [Page Break] Di vision 1 Eligib ility for and amount of a Govern ment FHSA contribution Section 40 1 (b) rounding the result in paragraph (a) down to the nearest 2 multiple of $500. 3 (2) The Government FHSA contribution threshold is not indexed if its 4 indexation factor is 1 or less. 5 (3) The indexation factor is: Index number mentioned in subsection (5) for the quarter ending on 31 December just before the start of the relevant financial year 6 Index number mentioned in subsection (5) for the quarter ending on 31 December 2007 7 (4) The indexation factor mentioned in subsection (3) is calculated to 3 8 decimal places (rounding up if the fourth decimal place is 5 or 9 more). 10 (5) The index number for a quarter is the estimate of full-time adult 11 average weekly ordinary time earnings for the middle month of the 12 quarter first published by the Australian Statistician for that month. 13 36 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Payment of Govern ment FHSA contribution Di vision 2 Section 41 1 2 Division 2--Payment of Government FHSA contribution 3 41 Commissioner's determinations 4 (1) The Commissioner must determine that a Government FHSA 5 contribution is payable for a person for a financial year if the 6 Commissioner is satisfied that the contribution is payable for the 7 person for the financial year. 8 (2) In deciding whether to make a determination under this section, the 9 Commissioner may have regard to: 10 (a) the income tax return lodged for the person, or the notice 11 given in accordance with section 37 for the person, as the 12 case requires, for the income year corresponding to the 13 financial year; and 14 (b) the statement (relating to personal FHSA contributions) given 15 to the Commissioner under section 391-5 in Schedule 1 to the 16 Taxation Administration Act 1953 for the person for the 17 financial year; and 18 (c) any other information held by the Commissioner that is 19 relevant to whether a Government FHSA contribution is 20 payable for the person for the financial year. 21 (3) If the Commissioner makes a determination under subsection (1), 22 the Commissioner must determine whether the contribution is to be 23 paid: 24 (a) to an FHSA held by the person; or 25 (b) to a superannuation interest of the person in a complying 26 superannuation plan; or 27 (c) to the person; or 28 (d) to the person's legal personal representative. 29 42 Payment of Governme nt FHSA contribution 30 (1) The Commissioner must, in accordance with a determination made 31 under section 41, pay the Government FHSA contribution payable 32 for a person for a financial year on or before the last day (the 33 payment date) of the period mentioned in subsection (2). First Home Saver Accounts Bill 2008 No. , 2008 37 [Page Break] Di vision 2 Pay ment of Govern ment FHSA contribution Section 43 1 (2) The period: 2 (a) starts on the later of the following days: 3 (i) the day on which the income tax return is lodged for the 4 person, or the notice is given in accordance with 5 section 37 for the person, as the case requires, for the 6 income year corresponding to the financial year; 7 (ii) the day on which the statement (relating to personal 8 FHSA contributions) for the person for the financial 9 year is given to the Commissioner under section 391-5 10 in Schedule 1 to the Taxation Administration Act 1953; 11 and 12 (b) ends 60 days later. 13 43 Providers to return Government FHSA contribution in certain 14 circumstances 15 (1) If: 16 (a) a Government FHSA contribution for a person is paid to an 17 FHSA provider or a superannuation provider; and 18 (b) the provider has not paid the contribution to an FHSA held 19 by the person, or to a superannuation interest of the person in 20 a complying superannuation plan, by the end of the 28th day 21 after the day on which the contribution was paid to the 22 provider; 23 the provider: 24 (c) is liable to repay the contribution to the Commonwealth; and 25 (d) must advise the Commissioner of the repayment, in the 26 approved form, when the contribution is repaid. 27 Note 1: The liability to repay the contribution is a tax-related liability: see 28 Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 for 29 collection and recovery provisions. 30 Note 2: Section 52 provides for the imposition of general interest charge if the 31 contribution is not repaid within a certain period. 32 Note 3: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 33 provides an administrative penalty for breach of paragraph (1)(d). A 34 breach of that paragraph may also be an offence under section 8C of 35 that Act. 38 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Payment of Govern ment FHSA contribution Di vision 2 Section 44 1 (2) The amount is due and payable 7 days after the day on which the 2 provider first becomes liable to repay the contribution. 3 44 Government FHSA contribution increased by interest amount if 4 paid late in certain circumstances 5 (1) The amount of the Government FHSA contribution for a person for 6 a financial year is increased by the amount of interest worked out 7 under subsection (2) if the Commissioner pays none of the 8 Government FHSA contribution on or before the payment date for 9 the contribution (see subsection 42(1)). 10 (2) The interest is to be calculated: 11 (a) on the amount of the Government FHSA contribution; and 12 (b) for the period from the payment date for the Government 13 FHSA contribution until the day on which the Commissioner 14 first pays an amount in satisfaction of the Government FHSA 15 contribution; and 16 (c) on a daily basis; and 17 (d) at the base interest rate for the day on which the interest is 18 calculated. 19 45 Commissioner to notify if Gove rnme nt FHSA contribution pa id 20 (1) If the Commissioner pays a Government FHSA contribution for a 21 person to: 22 (a) the person; or 23 (b) the person's legal personal representative; 24 the Commissioner must notify the person or the representative of 25 the payment when the contribution is paid. 26 (2) If the Commissioner pays a Government FHSA contribution for a 27 person to an FHSA provider or superannuation provider, the 28 Commissioner must notify the provider and the person of the 29 contribution when it is paid. 30 First Home Saver Accounts Bill 2008 No. , 2008 39 [Page Break] Di vision 3 Underpayments of Govern ment FHSA contribution Section 46 1 2 Division 3--Underpayments of Government FHSA 3 contribution 4 46 Unde rpayme nt determinations 5 (1) This section applies if the Commissioner: 6 (a) pays an amount by way of a Government FHSA contribution 7 for a person for a financial year; and 8 (b) is satisfied that the amount paid is less than the correct 9 amount of the contribution. 10 (2) The amount by which the correct amount exceeds the amount paid 11 is the underpaid amount. 12 (3) The Commissioner must determine that the underpaid amount is to 13 be paid for the person for the financial year. 14 (4) If the Commissioner makes a determination under subsection (3), 15 the Commissioner must determine whether the underpaid amount 16 is to be paid: 17 (a) to an FHSA held by the person; or 18 (b) to a superannuation interest of the person in a complying 19 superannuation plan; or 20 (c) to the person; or 21 (d) to the person's legal personal representative. 22 (5) The Commissioner must, in accordance with determinations made 23 under this section, pay the underpaid amount on or before the last 24 day (the payment date) of the period mentioned in subsection (6). 25 (6) The period: 26 (a) starts on the later of the following days: 27 (i) the day on which the income tax return is lodged for the 28 person, or the notice is given in accordance with 29 section 37 for the person, as the case requires, for the 30 income year corresponding to the financial year; 31 (ii) the day on which the statement (relating to personal 32 FHSA contributions) for the person for the financial 40 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Underpayments of Govern ment FHSA contribution Di vision 3 Section 47 1 year is given to the Commissioner under section 391-5 2 in Schedule 1 to the Taxation Administration Act 1953; 3 and 4 (b) ends 60 days later. 5 47 Providers to return underpaid amounts in certain circumstances 6 (1) If: 7 (a) the underpaid amount for a person is paid to an FHSA 8 provider or a superannuation provider; and 9 (b) the provider has not paid the underpaid amount to an FHSA 10 held by the person, or to a superannuation interest of the 11 person in a complying superannuation plan, by the end of the 12 28th day after the day on which the contribution was paid to 13 the provider; 14 the provider: 15 (c) is liable to repay the underpaid amount to the 16 Commonwealth; and 17 (d) must notify the Commissioner of the repayment, in the 18 approved form, at the time when the underpaid amount is 19 repaid. 20 Note 1: The liability to repay the contribution is a tax-related liability: see 21 Part 4-15 in Schedule 1 to the Taxation Administration Act 1953 for 22 collection and recovery provisions. 23 Note 2: Section 52 provides for the imposition of general interest charge if the 24 contribution is not repaid within a certain period. 25 Note 3: Section 286-75 in Schedule 1 to the Taxation Administration Act 1953 26 provides an administrative penalty for breach of paragraph (1)(d). A 27 breach of that paragraph may also be an offence under section 8C of 28 that Act. 29 (2) The amount is due and payable 7 days after the day on which the 30 provider first becomes liable to repay the underpaid amount. 31 48 Government FHSA contribution increased by interest amount if 32 underpaid amount paid late in certain circumstances 33 (1) The amount of the Government FHSA contribution for a person for 34 a financial year is increased by the amount of interest worked out 35 under subsection (2) if the Commissioner does not pay the First Home Saver Accounts Bill 2008 No. , 2008 41 [Page Break] Di vision 3 Underpayments of Govern ment FHSA contribution Section 49 1 underpaid amount in full on or before the payment date for the 2 underpaid amount (see subsection 46(5)). 3 (2) The interest is to be calculated: 4 (a) on the underpaid amount that remains unpaid on the payment 5 date for the underpaid amount; and 6 (b) for the period from the payment date for the underpaid 7 amount until the day on which the underpaid amount is paid 8 in full; and 9 (c) on a daily basis; and 10 (d) at the base interest rate for the day on which the interest is 11 calculated. 12 49 Small underpayments paid by cheque 13 The amount of the Government FHSA contribution is increased by 14 the difference between $5 and the underpaid amount if: 15 (a) the Commissioner makes a determination under subsection 16 46(3) in relation to an underpaid amount; and 17 (b) the underpaid amount is less than $5; and 18 (c) the underpaid amount is to be paid by cheque to: 19 (i) the person; or 20 (ii) the person's legal personal representative. 21 42 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Overpayments of Govern ment FHSA contribution Di vision 4 Section 50 1 2 Division 4--Overpayments of Government FHSA 3 contribution 4 50 Recovery of overpayme nts 5 (1) This section applies if: 6 (a) the Commissioner pays an amount by way of a Government 7 FHSA contribution for a person for a financial year; and 8 (b) either: 9 (i) the contribution was not payable for the person for the 10 financial year; or 11 (ii) the amount paid is more than the correct amount of the 12 contribution. 13 (2) The overpaid amount is: 14 (a) if the contribution was not payable for the person for the 15 financial year--the whole of the amount referred to in 16 paragraph (1)(a); or 17 (b) if the amount paid is more than the correct amount of the 18 contribution--the amount by which the amount paid exceeds 19 the correct amount. 20 (3) The Commissioner may take action to recover the overpaid amount 21 under one or more of the items in the following table, but may only 22 take action under an item if the conditions (if any) specified for 23 that item are satisfied: 24 Methods for recovering overpai d amount Item Action the Commissioner may Conditi ons to be satisfied take to recover overpai d amount 1 The Co mmissioner may deduct the whole or a part of the overpaid amount fro m any Govern ment FHSA contribution payable for the person. First Home Saver Accounts Bill 2008 No. , 2008 43 [Page Break] Di vision 4 Overpay ments of Government FHSA contribution Section 50 Methods for recovering overpai d amount Item Action the Commissioner may Conditi ons to be satisfied take to recover overpai d amount 2 The Co mmissioner may recover the The Government FHSA contribution whole or a part of the overpaid must have been paid by the amount fro m the person (or the Co mmissioner to the person (or the person's legal personal representative) or a payment of a representative) as a debt due by the kind mentioned in paragraph person (or the representative) to the 31(1)(a) or (e) must have been made Co mmonwealth. fro m an FHSA held by the person. The Co mmissioner must give the person (or the representative) written notice of the proposed recovery (including the amount to be recovered). At least 28 days must have elapsed since the notice was given. The amount recovered must not exceed the amount specified in the notice. 3 The Co mmissioner may recover the The amount recovered must not whole or a part of the overpaid exceed the balance held by the amount fro m an FHSA provider or a provider for the person. superannuation provider to which: The Co mmissioner must give the (a) the Co mmissioner paid the provider written notice of the Govern ment FHSA contribution; proposed recovery (including the or amount to be recovered). (b) another FHSA provider or At least 28 days must have elapsed superannuation provider since the notice was given. transferred the Govern ment The amount recovered must not FHSA contribution; exceed the amount specified in the as a debt due by the FHSA provider notice. or superannuation provider to the Co mmonwealth. 1 Note: Section 52 provides for the imposition of general interest charge if an 2 amount that the person must pay under a notice given to the person 3 under item 2 or 3 of the above table is not repaid within a certain 4 period. 44 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Overpayments of Govern ment FHSA contribution Di vision 4 Section 51 1 (4) The Commissioner may revoke a notice given under item 2 or 3 of 2 the table in subsection (3) if the Commissioner is satisfied that it is 3 appropriate in the circumstances to do so. 4 (5) The total of the amounts deducted or recovered under 5 subsection (3) in relation to an overpayment must not exceed the 6 overpaid amount. 7 (6) If the Commissioner makes a deduction under item 1 of the table in 8 subsection (3) in relation to a Government FHSA contribution for a 9 person, the Commissioner must notify the person within 28 days 10 after the deduction is made. 11 51 Small overpayme nts 12 If the overpaid amount mentioned in subsection 50(2) is less than 13 the greater of the following amounts: 14 (a) $100; 15 (b) the amount (if any) specified in the regulations for the 16 purposes of this paragraph; 17 the Government FHSA contribution is increased by the overpaid 18 amount. 19 First Home Saver Accounts Bill 2008 No. , 2008 45 [Page Break] Di vision 1 General Section 52 1 2 Part 5--Administration 3 Division 1--General 4 52 When general interest charge payable 5 (1) If: 6 (a) a person is liable under subsection 43(1) or 47(1) to repay an 7 amount; and 8 (b) the whole or a part of the amount remains unpaid after the 9 time by which the amount is due to be paid; 10 the person is liable to pay general interest charge on the unpaid 11 amount. 12 (2) If: 13 (a) the Commissioner gives a person a notice under item 2 or 3 14 of the table in subsection 50(3); and 15 (b) an amount that the person must pay under the notice remains 16 unpaid after the time by which it is due to be paid; 17 the person is liable to pay general interest charge on the unpaid 18 amount. 19 (3) A person who is liable under this section to pay general interest 20 charge on an unpaid amount is liable to pay the charge for each day 21 in the period that: 22 (a) started at the beginning of the day by which the unpaid 23 amount was due to be paid; and 24 (b) finishes at the end of the last day at the end of which any of 25 the following remains unpaid: 26 (i) the unpaid amount; 27 (ii) general interest charge on any of the unpaid amount. 28 (4) For the purposes of this section: 29 (a) an amount that a person becomes liable under subsection 30 43(1) or 47(1) to repay is due to be paid 7 days after the day 31 on which the person first becomes liable to repay the amount; 32 and 46 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] General Di vision 1 Section 53 1 (b) an amount payable under a notice given under item 2 or 3 of 2 the table in subsection 50(3) is due to be paid 28 days after 3 the day on which the notice is given. 4 53 Decisions under Part 4 to be in writing 5 (1) A decision of the Commissioner under Part 4 or regulations 6 relating to that Part must be in writing. 7 (2) Such a decision is taken to be in writing if it is made, or recorded, 8 by means of a computer. 9 54 Commissioner may arrange for use of computer programs to 10 make decisions unde r Part 4 11 (1) The Commissioner may arrange for the use, under the 12 Commissioner's control, of computer programs for any purposes 13 for which the Commissioner may make decisions under Part 4 or 14 regulations relating to that Part. 15 (2) A decision made by the operation of a computer program under an 16 arrangement made under subsection (1) is taken to be a decision 17 made by the Commissioner. 18 55 Approved forms approved by Commissioner 19 To avoid doubt, an approved form approved by the Commissioner 20 for the purposes of a provision of this Act is an approved form 21 within the meaning of section 388-50 in Schedule 1 to the Taxation 22 Administration Act 1953. 23 First Home Saver Accounts Bill 2008 No. , 2008 47 [Page Break] Di vision 2 Tax file numbers Section 56 1 2 Division 2--Tax file numbers 3 Subdivision A--Quotation, use and transfer of FHSA holder's 4 tax file number 5 56 FHSA holder or applicant may quote tax file numbe r 6 An FHSA holder, or an applicant to become an FHSA holder, may 7 quote his or her tax file number to the FHSA provider in 8 connection with the operation or the possible future operation of 9 this Act and the Superannuation Acts. 10 Note: Section 62 sets out the method of quoting. 11 57 FHSA provider may request FHSA holder's or applicant's tax 12 file numbe r 13 An FHSA provider may at any time request, in the approved form, 14 an FHSA holder, or a person applying to become an FHSA holder, 15 to quote his or her tax file number to the FHSA provider in 16 connection with the operation or the possible future operation of 17 this Act and the Superannuation Acts. 18 58 FHSA provider must request FHSA holder to quote tax file 19 number if not quoted previously 20 (1) Subject to subsection (3), if: 21 (a) a person becomes a holder of an FHSA; and 22 (b) the person has not quoted his or her tax file number to the 23 FHSA provider in connection with the operation or the 24 possible future operation of this Act and the Superannuation 25 Acts, by the time he or she becomes a holder; 26 the FHSA provider must, before the required time (see 27 subsection (2)), request the person in the approved form to quote 28 his or her tax file number to the FHSA provider in connection with 29 the operation or the possible future operation of this Act and the 30 Superannuation Acts. 48 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Tax file nu mbers Di vision 2 Section 59 1 Example: The FHSA provider must make the request if the person quoted the 2 incorrect tax file number in his or her application for the FHSA. 3 Required time 4 (2) The required time is the end of the 28th day after the day on which 5 the FHSA provider becomes aware that the person has not quoted 6 his or her tax file number to the FHSA provider in connection with 7 the operation or the possible future operation of this Act and the 8 Superannuation Acts. 9 Exception 10 (3) The FHSA provider is not required to make the request if, before 11 the required time, the person quotes his or her tax file number to 12 the FHSA provider in connection with the operation or the possible 13 future operation of this Act and the Superannuation Acts. 14 Offences 15 (4) An FHSA provider commits an offence if it contravenes 16 subsection (1). 17 Penalty: 100 penalty units. 18 (5) An FHSA provider commits an offence if it contravenes 19 subsection (1). This is an offence of strict liability. 20 Penalty: 50 penalty units. 21 Note: For strict liability, see section 6.1 of the Criminal Code. 22 59 No obligation to quote tax file numbe r 23 If the FHSA provider requests an FHSA holder or an applicant to 24 quote his or her tax file number, the holder or applicant is not 25 obliged to comply with the request. 26 60 Use of tax file number for certain purposes 27 (1) This section applies if an FHSA holder, or a person applying to 28 become an FHSA holder, quotes his or her tax file number to the First Home Saver Accounts Bill 2008 No. , 2008 49 [Page Break] Di vision 2 Tax file numbers Section 60 1 FHSA provider in connection with the operation or the possible 2 future operation of this Act and the Superannuation Acts. 3 Obligation to record tax file number 4 (2) If the FHSA provider does not already have a record of the tax file 5 number, the FHSA provider must, as soon as is reasonably 6 practicable after the quotation, make a record of it. 7 Obligation to retain tax file number until no longer required 8 (3) The FHSA provider must ensure that: 9 (a) if the person applies to become an FHSA holder, but does not 10 become an FHSA holder--the record is retained until the 11 time (the last retention time) at which the person ceases to be 12 an applicant; and 13 (b) if the person is or becomes a holder of an FHSA provided by 14 the FHSA provider--the record is retained until the later of 15 the following times (also the last retention time): 16 (i) the time the person ceases to be a holder of such an 17 FHSA; 18 (ii) the last time at which the FHSA provider needs to use 19 the tax file number in order to comply with its 20 obligations under Division 391 in Schedule 1 to the 21 Taxation Administration Act 1953. 22 Obligation to destroy tax file number record when no longer 23 required 24 (4) The FHSA provider must ensure that the record is destroyed as 25 soon as is reasonably practicable after the last retention time. 26 (5) Subsection (4) does not apply if the tax file number has also been 27 provided for another purpose and is still required for that purpose. 28 Use of tax file numbers to locate amounts 29 (6) Subject to subsection (7), the FHSA provider may use tax file 30 numbers quoted to it as mentioned in subsection (1) in order to 31 locate, in the records or accounts of the FHSA provider, amounts 32 held in FHSAs provided by it. 50 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Tax file nu mbers Di vision 2 Section 61 1 Use of tax file numbers to identify FHSAs held by a particular 2 person 3 (7) If the FHSA provider needs to identify the FHSA held by a 4 particular person: 5 (a) the FHSA provider must first use information (other than tax 6 file numbers) to identify the FHSA; and 7 (b) the FHSA provider may only use the tax file number quoted 8 by the person to the FHSA provider: 9 (i) if the information referred to in paragraph (a) is 10 insufficient to identify the FHSA; or 11 (ii) to confirm the identification of the FHSA resulting from 12 the use of the other information. 13 Offences 14 (8) An FHSA provider commits an offence if it contravenes a 15 requirement of this section. 16 Penalty: 100 penalty units. 17 (9) An FHSA provider commits an offence if it contravenes a 18 requirement of this section. This is an offence of strict liability. 19 Penalty: 50 penalty units. 20 Note: For strict liability, see section 6.1 of the Criminal Code. 21 61 FHSA provider must inform othe r FHSA provider or 22 superannuation provider of tax file number for certain 23 purposes 24 (1) This section applies if: 25 (a) a person is the holder of an FHSA provided by an FHSA 26 provider; and 27 (b) the holder has quoted (whether as a holder or as a person 28 applying to become a holder) his or her tax file number to the 29 FHSA provider in connection with the operation or the 30 possible future operation of this Act and the Superannuation 31 Acts. First Home Saver Accounts Bill 2008 No. , 2008 51 [Page Break] Di vision 2 Tax file numbers Section 62 1 Transfer of amounts in an FHSA to another FHSA 2 (2) If the FHSA provider transfers the balance of the FHSA to another 3 FHSA held by the holder, the FHSA provider must, at the time of 4 the transfer and in the approved form, inform the other FHSA 5 provider of the holder's tax file number. 6 Contribution of amounts in an FHSA to a complying 7 superannuation plan 8 (3) If the FHSA provider contributes any amount from the FHSA to a 9 complying superannuation plan for the benefit of the holder, the 10 FHSA provider must, at the time of the contribution and in the 11 approved form, inform the superannuation provider in relation to 12 the plan of the holder's tax file number. 13 Offences 14 (4) An FHSA provider commits an offence if it contravenes a 15 requirement of this section. 16 Penalty: 100 penalty units. 17 (5) An FHSA provider commits an offence if it contravenes a 18 requirement of this section. This is an offence of strict liability. 19 Penalty: 50 penalty units. 20 Note: For strict liability, see section 6.1 of the Criminal Code. 21 Subdivision B--Method of quotation of tax file numbers, 22 including deemed quotation 23 62 Method of quoting tax file number 24 A person quotes his or her tax file number to another person in 25 connection with the operation or the possible future operation of 26 this Act and the Superannuation Acts if: 27 (a) the person informs the other person of the number in the 28 approved form; or 29 (b) the person is taken to have quoted the number to the other 30 person in connection with the operation or the possible future 52 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Tax file nu mbers Di vision 2 Section 63 1 operation of this Act and the Superannuation Acts under any 2 of the following provisions of this Division. 3 63 FHSA holder taken to have quoted whe re Commissioner gives 4 notice 5 (1) An FHSA holder, or a person applying to become an FHSA holder, 6 is taken to have quoted his or her tax file number to an FHSA 7 provider in connection with the operation or the possible future 8 operation of this Act and the Superannuation Acts if the 9 Commissioner gives to the provider notice of the person's tax file 10 number. 11 (2) The holder or applicant is taken to have quoted that tax file number 12 at the time when the Commissioner gave the notice. 13 64 Information provided by FHSA provider taken to have been 14 provided by FHSA holder 15 (1) This section applies if, in accordance with subsection 61(2) or (3), 16 an FHSA provider (the first FHSA provider) informs another 17 FHSA provider (the second FHSA provider), or a superannuation 18 provider, of the tax file number of an FHSA holder. 19 (2) The FHSA holder is taken: 20 (a) to have quoted the tax file number to the second FHSA 21 provider or the superannuation provider in connection with 22 the operation or the possible future operation of this Act and 23 the Superannuation Acts; and 24 (b) to have quoted that tax file number at the time when the first 25 FHSA provider informs the second FHSA provider or the 26 superannuation provider. 27 65 FHSA holder or applicant taken to have quoted if he or she 28 quoted for other purposes 29 For the purposes of this Act, an FHSA holder, or a person applying 30 to become an FHSA holder, is taken to have quoted his or her tax 31 file number to the FHSA provider in connection with the operation First Home Saver Accounts Bill 2008 No. , 2008 53 [Page Break] Di vision 2 Tax file numbers Section 66 1 or the possible future operation of this Act and the Superannuation 2 Acts, if: 3 (a) the FHSA holder or applicant has quoted his or her tax file 4 number to the FHSA provider under a provision of: 5 (i) the Taxation Administration Act 1953; or 6 (ii) the Income Tax Assessment Act 1936; or 7 (iii) the Income Tax Assessment Act 1997; and 8 (b) the quotation was made on or after the commencement of this 9 Part. 10 Subdivision C--Incorrect quotation of tax file number 11 66 Effect of mistaken quotation of tax file numbe r 12 (1) The Commissioner may give an FHSA provider notice of the tax 13 file number of the holder of an FHSA if: 14 (a) the provider has made a record of a number (the recorded 15 TFN) the provider believes to be the tax file number of the 16 holder; and 17 (b) the Commissioner is satisfied that the recorded TFN: 18 (i) has been cancelled or withdrawn since it was quoted; or 19 (ii) is otherwise wrong; and 20 (c) the Commissioner is satisfied that the holder has a tax file 21 number. 22 (2) The holder is taken to have quoted his or her tax file number to the 23 provider in connection with the operation or the possible future 24 operation of this Act and the Superannuation Acts at a time if: 25 (a) the Commissioner gives the provider a notice under 26 subsection (1); and 27 (b) had the recorded TFN been the tax file number of the holder, 28 the holder would have quoted his or her tax file number to 29 the trustee in that way at the time. 30 67 Effect of invalid quotation of tax file number 31 (1) The Commissioner may give an FHSA provider a notice under 32 subsection (2) if: 54 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Tax file nu mbers Di vision 2 Section 68 1 (a) the provider has made a record of a number (the recorded 2 TFN) the FHSA provider believes to be the tax file number 3 of the holder of an FHSA; and 4 (b) the Commissioner is satisfied that the recorded TFN: 5 (i) has been cancelled or withdrawn since it was quoted; or 6 (ii) is otherwise wrong; and 7 (c) the Commissioner is not satisfied that the holder has a tax file 8 number. 9 (2) The notice must: 10 (a) identify the holder; and 11 (b) state that the Commissioner is not satisfied that the holder 12 has a tax file number; and 13 (c) describe the operation of the following provisions that results 14 from the notice being given: 15 (i) section 22 (requirement to close inactive FHSA); 16 (ii) section 26 (limit on contributions to FHSA); 17 (iii) sections 32 and 35 (limit on payments from FHSA). 18 (3) If the Commissioner gives a notice under subsection (2), the 19 Commissioner must give a copy of the notice to the holder. 20 (4) If the Commissioner gives the FHSA provider notice of the 21 person's tax file number at a later time, the Commissioner must at 22 that time also give the FHSA provider a written revocation of the 23 notice under subsection (2). 24 Subdivision D--Provision of tax file numbers in forms etc. 25 68 Forms etc. may require tax file number 26 Application for approval 27 (1) The approved form of an application for authorisation as an FHSA 28 provider under section 89 may require the application to contain 29 the tax file number of the applicant. First Home Saver Accounts Bill 2008 No. , 2008 55 [Page Break] Di vision 2 Tax file numbers Section 69 1 Financial returns 2 (2) The form of a financial return a copy of which is required to be 3 given by an FHSA provider to APRA under section 13 of the 4 Financial Sector (Collection of Data) Act 2001 may require the 5 return to contain the provider's tax file number. 6 Application for FHSA 7 (3) The approved form of an application for an FHSA in accordance 8 with section 19 may require the application to contain the tax file 9 number of the applicant. 10 69 Failure to quote tax file number 11 (1) For the purposes of section 137.1 of the Criminal Code, a person 12 does not omit a matter or thing from a statement made to a person 13 covered under subsection (4) merely because the person has, in 14 making the statement, failed to quote his or her tax file number. 15 (2) For the purposes of subsection (1), a statement made to a person 16 covered under subsection (4) includes a statement made orally, in 17 writing, in a data processing device or in any other form. 18 (3) Without limiting subsection (2), a statement made to a person 19 covered under subsection (4) includes a statement: 20 (a) made in an application, notification, return or other document 21 made, prepared, given, or purporting to be made, prepared or 22 given, under this Act or the regulations; or 23 (b) made in answer to a question asked of a person under this 24 Act or the regulations; or 25 (c) made in any information given, or purporting to be given, 26 under this Act or the regulations; or 27 (d) made in a document given to a person covered under 28 subsection (4) otherwise than under this Act or the 29 regulations. 30 (4) A person is covered under this section if the person is exercising 31 powers or performing functions under or in relation to this Act or 32 the regulations. 33 56 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Secrecy Di vision 3 Section 70 1 2 Division 3--Secrecy 3 70 Secrecy 4 Persons covered by this section 5 (1) This section applies to a person who is or has been: 6 (a) the Commissioner, a Second Commissioner or a Deputy 7 Commissioner; or 8 (b) a person engaged under the Public Service Act 1999 in the 9 Agency (within the meaning of that Act) of which the 10 Commissioner is the Agency Head; or 11 (c) otherwise appointed or employed by, or a provider of 12 services for, the Commonwealth. 13 Information may be recorded or divulged only for purposes of Act 14 (2) A person to whom this section applies commits an offence if: 15 (a) the person: 16 (i) makes a record of any protected information; or 17 (ii) whether directly or indirectly, divulges or 18 communicates to a person any protected information 19 about another person; and 20 (b) the record is not made, or the information is not divulged or 21 communicated: 22 (i) under or for the purposes of this Act or the regulations; 23 or 24 (ii) in the performance of duties, as a person to whom this 25 section applies, under or in relation to this Act or the 26 regulations. 27 Penalty: Imprisonment for 2 years. 28 Information may be divulged to persons performing duties under 29 taxation law 30 (3) Subsection (2) does not prohibit the Commissioner, a Second 31 Commissioner or a Deputy Commissioner, or a person authorised First Home Saver Accounts Bill 2008 No. , 2008 57 [Page Break] Di vision 3 Secrecy Section 70 1 by any of them, from divulging or communicating any protected 2 information to a person performing, as a person to whom this 3 section applies, duties under, or in relation to, a taxation law for the 4 purpose of enabling the person to perform the duties. 5 Note: In a prosecution for an offence against subsection (2), the defendant 6 bears an evidential burden in relation to the matters in this 7 subsection (see subsection 13.3(3) of the Criminal Code). 8 Divulging information to Minister 9 (4) A person divulges or communicates protected information to a 10 person in contravention of subsection (2) if the person divulges or 11 communicates the information to a Minister. 12 Court may not require information or documents 13 (5) A person to whom this section applies is not required: 14 (a) to divulge or communicate protected information to a court; 15 or 16 (b) to produce a protected document in court; 17 except where it is necessary to do so for the purpose of carrying 18 into effect the provisions of this Act or the regulations. 19 Information may be divulged to persons performing duties under 20 this Act 21 (6) Nothing in this Act or any other taxation law prohibits the 22 Commissioner, a Second Commissioner or a Deputy 23 Commissioner, or a person authorised by any of them, from 24 divulging or communicating any information to a person 25 performing, as a person to whom this section applies, duties under 26 or in relation to this Act or the regulations for the purpose of 27 enabling the person to perform the duties. 28 Note: In a prosecution for an offence against subsection (2), the defendant 29 bears an evidential burden in relation to the matters in this 30 subsection (see subsection 13.3(3) of the Criminal Code). 58 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Secrecy Di vision 3 Section 70 1 Information may be divulged to court for purposes of this Act 2 (7) Nothing in this Act or any other taxation law prohibits the 3 Commissioner, a Second Commissioner, a Deputy Commissioner, 4 or a person authorised by any of them, from: 5 (a) divulging or communicating to a court any information 6 obtained under or for the purposes of such an Act; or 7 (b) producing in court a document obtained or made under or for 8 the purposes of such an Act; 9 if it is necessary to do so for the purpose of carrying into effect the 10 provisions of this Act or the regulations. 11 Note: In a prosecution for an offence against subsection (2), the defendant 12 bears an evidential burden in relation to the matters in this 13 subsection (see subsection 13.3(3) of the Criminal Code). 14 Oath, or affirmation, or declaration, of secrecy 15 (8) A person to whom this section applies must, if and when required 16 by the Commissioner, a Second Commissioner or a Deputy 17 Commissioner to do so, make an oath, or affirmation, or 18 declaration, in a manner and form determined by the 19 Commissioner in writing, to maintain secrecy in accordance with 20 this section. 21 First Home Saver Accounts Bill 2008 No. , 2008 59 [Page Break] Di vision 4 Rev iew o f decisions Section 71 1 2 Division 4--Review of decisions 3 Subdivision A--Review of Commissioner decisions relating to 4 Government FHSA contributions 5 71 Review of decisions 6 (1) A person affected by a decision (the original decision) made by 7 the Commissioner under Division 2, 3 or 4 of Part 4 may apply to 8 the Commissioner for review of the decision. 9 (2) If the person does so, the Commissioner must either: 10 (a) review the original decision and decide to: 11 (i) affirm it; or 12 (ii) vary it; or 13 (iii) set it aside and substitute a new decision; or 14 (b) arrange for an authorised review officer (see section 72) to do 15 so. 16 (3) In making arrangements for a review under subsection (2), the 17 Commissioner must have regard to the need for the review to be an 18 independent one. 19 72 Authorised review officers 20 The Commissioner must authorise persons employed or engaged 21 under the Public Service Act 1999 who are exercising powers or 22 performing functions under, pursuant to or in relation to a taxation 23 law to be authorised review officers for the purposes of this 24 Division. 25 73 Withdrawal of review applications 26 (1) An applicant for review under section 71 may, in writing or in any 27 other manner approved by the Commissioner, withdraw the 28 application at any time before the reviewer of the decision does 29 any of the things in subsection 71(2). 60 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Review of decisions Di vision 4 Section 74 1 (2) If an application is so withdrawn, it is taken never to have been 2 made. 3 Subdivision B--Review of certain APRA decisions 4 74 Reviewable decision 5 Each of the following decisions is a reviewable decision: 6 (a) a decision of APRA to make a Prudential Standard referred 7 to in paragraph 121(1)(c); 8 (b) a decision of APRA to vary or revoke a Prudential Standard 9 referred to in paragraph 121(1)(c); 10 (c) a decision of APRA under subsection 90(2) to treat an 11 application for an authorisation as an FHSA provider as 12 having been withdrawn; 13 (d) a decision of APRA under subsection 92(2) refusing an 14 application for an authorisation as an FHSA provider; 15 (e) a decision of APRA under subsection 98(1) to impose any 16 additional conditions on an authorisation as an FHSA 17 provider; 18 (f) a decision of APRA under subsection 101(2) to treat an 19 application for variation or revocation of a condition imposed 20 on an authorisation as an FHSA provider as having been 21 withdrawn; 22 (g) a decision of APRA to refuse to vary or revoke under 23 subsection 103(1) any conditions imposed on an 24 authorisation as an FHSA provider; 25 (h) a decision of APRA under subsection 104(1) to vary or 26 revoke any conditions imposed on an authorisation as an 27 FHSA provider; 28 (i) a decision of APRA under subsection 107(1) to cancel an 29 authorisation as an FHSA provider. First Home Saver Accounts Bill 2008 No. , 2008 61 [Page Break] Di vision 4 Rev iew o f decisions Section 75 1 75 Review of certain decisions 2 Request for review 3 (1) A person who is affected by a reviewable decision of APRA may, 4 if dissatisfied with the decision, request APRA to reconsider the 5 decision. 6 How request must be made 7 (2) The request must be made by written notice given to APRA within 8 the period of 21 days after the day on which the person first 9 receives notice of the decision, or within such further period as 10 APRA allows. 11 Request must set out reasons 12 (3) The request must set out the reasons for making the request. 13 APRA to reconsider decision 14 (4) Upon receipt of the request, APRA must reconsider the decision 15 and may, subject to subsection (5), confirm or revoke the decision 16 or vary the decision in such manner as APRA thinks fit. 17 Deemed confirmation of decision if delay 18 (5) If APRA does not confirm, revoke or vary a decision before the 19 end of the period of 60 days after the day on which APRA received 20 the request under subsection (1) to reconsider the decision, APRA 21 is taken, at the end of that period, to have confirmed the decision 22 under subsection (4). 23 Notice of APRA's action 24 (6) If APRA confirms, revokes or varies a decision before the end of 25 the period referred to in subsection (5), APRA must give written 26 notice to the person stating: 27 (a) the result of the reconsideration of the decision; and 28 (b) the reasons for confirming, varying or revoking the decision, 29 as the case may be. 62 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Review of decisions Di vision 4 Section 76 1 AAT review of APRA's decisions 2 (7) Applications may be made to the Administrative Appeals Tribunal 3 for review of decisions of APRA that have been confirmed or 4 varied under subsection (4). 5 Period for making certain AAT applications 6 (8) If a decision is taken to be confirmed because of subsection (5), 7 section 29 of the Administrative Appeals Tribunal Act 1975 applies 8 as if the prescribed time for making application for review of the 9 decision were the period of 28 days beginning on the day on which 10 the decision is taken to be confirmed. 11 Only trustees affected by certain reviewable decisions 12 (9) For the purposes of this section and section 76, a person is taken 13 not to be affected by a reviewable decision mentioned in paragraph 14 74(f), (g) or (h) unless the person is a trustee of an FHSA trust that 15 is affected by the decision. 16 76 Statements to accompany notification of decisions 17 (1) If a written notice is given to a person affected by a reviewable 18 decision stating that the reviewable decision has been made, that 19 notice is to include a statement to the effect that: 20 (a) the person may, if dissatisfied with the decision, seek a 21 reconsideration of the decision by APRA in accordance with 22 subsection 75(1); and 23 (b) the person may, subject to the Administrative Appeals 24 Tribunal Act 1975, if dissatisfied with a decision made by 25 APRA upon that reconsideration confirming or varying the 26 first-mentioned decision, make application to the 27 Administrative Appeals Tribunal for review of the decision 28 so confirmed or varied. 29 (2) If APRA confirms or varies a reviewable decision under subsection 30 75(4) and gives to the person written notice of the confirmation or 31 variation of the decision, that notice is to include a statement to the 32 effect that the person may, subject to the Administrative Appeals 33 Tribunal Act 1975, if dissatisfied with the decision so confirmed or First Home Saver Accounts Bill 2008 No. , 2008 63 [Page Break] Di vision 4 Rev iew o f decisions Section 76 1 varied, make application to the Administrative Appeals Tribunal 2 for review of the decision. 3 (3) A failure to comply with the requirements of subsections (1) and 4 (2) in relation to a reviewable decision or a decision under 5 subsection 75(4) does not affect the validity of that decision. 6 64 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Information gathering Di vision 1 Section 77 1 2 Part 6--Enforcement 3 Division 1--Information gathering 4 77 Commissioner may require person or legal representative to give 5 information 6 (1) The Commissioner may give a person, or the legal personal 7 representative of a person, a written notice requiring the person or 8 representative to give the Commissioner a statement setting out: 9 (a) information to enable the Commissioner to determine: 10 (i) whether a Government FHSA contribution is payable 11 for the person; or 12 (ii) the amount of any Government FHSA contribution 13 payable for the person; or 14 (b) information to enable the Commissioner to determine to 15 whom the Commissioner should pay a Government FHSA 16 contribution, or an underpaid amount, payable for the person; 17 or 18 (c) information to enable the Commissioner to determine: 19 (i) whether an amount is recoverable under section 50 20 (which deals with overpayments) in relation to a 21 Government FHSA contribution paid for the person; or 22 (ii) the overpaid amount in relation to a Government FHSA 23 contribution paid for the person; or 24 (d) any other matters relating to Government FHSA 25 contributions specified in the regulations. 26 The notice must specify the period within which the statement 27 must be given to the Commissioner. The period specified must end 28 not less than 21 days after the day on which the notice is given. 29 (2) The person or representative commits an offence if: 30 (a) the notice requires the person or representative to give the 31 Commissioner a statement setting out information to enable 32 the Commissioner to determine: First Home Saver Accounts Bill 2008 No. , 2008 65 [Page Break] Di vision 1 Informat ion gathering Section 78 1 (i) whether an amount is recoverable under section 50 2 (which deals with overpayments) in relation to a 3 Government FHSA contribution paid for the person; or 4 (ii) the overpaid amount in relation to a Government FHSA 5 contribution paid for the person; and 6 (b) the person or representative fails to comply with the notice. 7 Penalty: 30 penalty units. 8 (3) The Commissioner may give a notice under subsection (1) at any 9 time and from time to time. 10 78 Commissioner may require FHSA provider to give information 11 (1) The Commissioner may give an FHSA provider a written notice 12 requiring the provider to give the Commissioner a statement setting 13 out: 14 (a) information to enable the Commissioner to determine: 15 (i) whether a Government FHSA contribution is payable 16 for a person; or 17 (ii) the amount of any Government FHSA contribution 18 payable for a person; or 19 (b) information to enable the Commissioner to determine to 20 whom the Commissioner should pay a Government FHSA 21 contribution, or an underpaid amount, for a person; or 22 (c) information to enable the Commissioner to determine: 23 (i) whether an amount is recoverable under section 50 24 (which deals with overpayments) in relation to a 25 Government FHSA contribution paid for a person; or 26 (ii) the overpaid amount in relation to a Government FHSA 27 contribution paid for a person; or 28 (d) any other matters relating to Government FHSA 29 contributions specified by the regulations. 30 The notice must specify the period within which the statement 31 must be given to the Commissioner. The period specified must end 32 not less than 21 days after the day on which the notice is given. 33 (2) The FHSA provider commits an offence if the provider fails to 34 comply with the notice. 66 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Information gathering Di vision 1 Section 79 1 Penalty: 30 penalty units. 2 (3) The Commissioner may give a notice under subsection (1) at any 3 time and from time to time. 4 79 Self-incrimination 5 (1) A person is not excused from giving a statement under section 77 6 or 78 on the ground that the statement might tend to incriminate the 7 person or make the person liable to a penalty. 8 (2) However, if the person is an individual, neither: 9 (a) the statement; nor 10 (b) anything obtained as a direct or indirect result of the giving 11 of the statement; 12 is admissible in evidence against the individual in any criminal 13 proceedings (other than proceedings for an offence against 14 section 77 or 78 of this Act or proceedings for an offence against 15 section 137.1 or 137.2 of the Criminal Code that relates to this 16 Act). 17 First Home Saver Accounts Bill 2008 No. , 2008 67 [Page Break] Di vision 2 Access to premises Section 80 1 2 Division 2--Access to premises 3 80 Appointment of authorised persons 4 The Commissioner may, by writing signed by the Commissioner, 5 appoint a person: 6 (a) appointed or engaged under the Public Service Act 1999; and 7 (b) performing duties in the Australian Taxation Office; 8 to be an authorised person for the purposes of this Division or of a 9 specified provision of this Division. 10 81 Powe rs of authorised person in relation to pre mises 11 (1) An authorised person may: 12 (a) with the consent of the occupier or person in charge of 13 premises; or 14 (b) in accordance with a warrant issued under section 87 in 15 relation to premises; 16 enter the premises for the purposes of: 17 (c) obtaining information to determine: 18 (i) whether a Government FHSA contribution is payable 19 for a person; or 20 (ii) the amount of a Government FHSA contribution that is 21 payable for a person; or 22 (iii) whether an amount is recoverable under section 50 23 (which deals with overpayments) in relation to a 24 Government FHSA contribution paid for a person; or 25 (iv) the overpaid amount in relation to a Government FHSA 26 contribution for a person; or 27 (d) ascertaining whether a person has contravened or is 28 contravening a provision of this Act. 29 (2) If an authorised person enters any premises under subsection (1), 30 the authorised person may search the premises for, inspect, 31 examine, take extracts from, and make copies of, any examinable 32 documents. 68 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Access to premises Di vision 2 Section 82 1 82 Obligations of authorised pe rsons--all cases 2 (1) An authorised person is authorised to enter premises in accordance 3 with subsection 81(1) only if: 4 (a) the authorised person has shown his or her identity card, if 5 required by the occupier or person in charge of the premises; 6 and 7 (b) the authorised person has given the occupier or person in 8 charge of the premises a written statement of the occupier's 9 or person's rights and obligations in relation to the authorised 10 person's proposed entry onto the premises. 11 (2) An authorised person is not entitled to exercise any powers under 12 this Division in relation to premises if, after entering the premises: 13 (a) the occupier or person in charge of the premises has required 14 the authorised person to produce his or her identity card for 15 inspection; and 16 (b) the authorised person fails to comply with the requirement. 17 83 Obligations of authorised pe rsons--entry by consent 18 (1) An authorised person is authorised to enter premises in accordance 19 with paragraph 81(1)(a) only if the authorised person has informed 20 the occupier or person in charge of the premises that the occupier 21 or person may refuse consent. 22 (2) If an authorised person is on premises by consent in accordance 23 with paragraph 81(1)(a), the authorised person must leave the 24 premises if the occupier or person in charge of the premises asks 25 the authorised person to do so. 26 84 Obligations of authorised pe rsons--entry by warrant 27 (1) An authorised person must, before entering premises under a 28 warrant issued under section 87: 29 (a) announce that he or she is authorised to enter the premises; 30 and 31 (b) give any person at the premises an opportunity to allow entry 32 to the premises. First Home Saver Accounts Bill 2008 No. , 2008 69 [Page Break] Di vision 2 Access to premises Section 85 1 (2) An authorised person is not required to comply with subsection (1) 2 if he or she believes on reasonable grounds that immediate entry to 3 the premises is required to ensure that the effective execution of 4 the warrant is not frustrated. 5 (3) If, when executing the warrant, the occupier or person in charge of 6 the premises is present at the premises, the authorised person must 7 make available to the occupier or person a copy of the warrant. 8 (4) The authorised person must identify himself or herself to the 9 occupier or person. 10 (5) The copy of the warrant referred to in subsection (3) need not 11 include the signature of the magistrate who issued the warrant. 12 85 Obstruction of authorised person acting under a warrant 13 A person commits an offence if: 14 (a) the person obstructs or hinders an authorised person in the 15 exercise of the authorised person's power under section 81; 16 and 17 (b) the authorised person exercises that power in accordance 18 with a warrant issued under section 87. 19 Penalty: 30 penalty units. 20 86 Persons to assist authorised persons acting under a warrant 21 (1) If an authorised person enters any premises in accordance with 22 paragraph 81(1)(b), the occupier or the person in charge of the 23 premises must, if requested to do so by the authorised person, 24 provide reasonable assistance to the authorised person in the 25 exercise of his or her power under that section in relation to those 26 premises. 27 (2) The occupier or the person in charge of the premises commits an 28 offence if he or she fails to provide that reasonable assistance to the 29 authorised person. 30 Penalty: 30 penalty units. 70 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Access to premises Di vision 2 Section 87 1 87 Issue of warrant to enter premises 2 (1) If a magistrate, on application by an authorised person, is satisfied, 3 by information on oath or affirmation: 4 (a) that there are reasonable grounds for believing that there are 5 examinable documents on particular premises of an FHSA 6 provider; and 7 (b) that the issue of the warrant is reasonably required for the 8 purpose of ascertaining: 9 (i) whether a Government FHSA contribution is payable 10 for a person; or 11 (ii) the amount of a Government FHSA contribution that is 12 payable for a person; or 13 (iii) whether an amount is recoverable under section 50 14 (which deals with overpayments) in relation to a 15 Government FHSA contribution paid for a person; or 16 (iv) the overpaid amount in relation to a Government FHSA 17 contribution for a person; or 18 (v) whether a person has contravened or is contravening a 19 provision of this Act; 20 the magistrate may issue a warrant authorising the authorised 21 person to enter the premises: 22 (c) with such assistance as is necessary and reasonable; and 23 (d) during such hours as the warrant specifies, or, if the warrant 24 so specifies, at any time. 25 (2) A warrant must specify: 26 (a) the powers exercisable under subsection 81(2) by the 27 authorised person to whom the warrant is issued; and 28 (b) the day (not more than 14 days after the issue of the warrant) 29 on which the warrant ceases to have effect; and 30 (c) the purpose for which the warrant is issued. 31 (3) The function of issuing a warrant is conferred on the magistrate in 32 a personal capacity and not as a court or a member of a court. The 33 magistrate need not accept the function conferred. First Home Saver Accounts Bill 2008 No. , 2008 71 [Page Break] Di vision 2 Access to premises Section 88 1 88 Identity cards 2 (1) The Commissioner may cause an identity card to be issued to an 3 authorised person. 4 (2) An identity card must: 5 (a) contain a recent photograph of the authorised person to 6 whom it is issued; and 7 (b) be in a form approved, in writing, by the Commissioner. 8 (3) A person commits an offence if: 9 (a) the person has been issued with an identity card under 10 subsection (1); and 11 (b) the person ceases to be an authorised person for the purposes 12 of this Division; and 13 (c) the person does not immediately return the identity card to 14 the Commissioner. 15 Penalty: 1 penalty unit. 16 72 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 89 1 2 Part 7--Prudential provisions 3 Division 1--Authorisation of RSE licensees as FHSA 4 providers 5 Subdivision A--Applying for authorisation as FHSA provider 6 89 RSE licensee applications for authorisation as FHSA providers 7 Who may apply for authorisation as FHSA provider 8 (1) An RSE licensee that holds an RSE licence of a class that would 9 enable it to be a trustee of a public offer entity may apply to APRA 10 for an authorisation as an FHSA provider. 11 Requirements for applications 12 (2) An application for an authorisation as an FHSA provider must: 13 (a) be in the approved form; and 14 (b) contain the information required by the approved form; and 15 (c) be accompanied by the application fee (if any) specified in 16 regulations made for the purposes of this paragraph. 17 Note: The approved form may require the application to contain the tax file 18 number of the applicant (see section 68). 19 90 APRA may request further information 20 (1) APRA may give an applicant for an authorisation as an FHSA 21 provider a notice, in writing, requesting it to give specified 22 information relating to the application to APRA by a specified 23 time. The specified time must be reasonable in the circumstances. 24 (2) APRA may decide to treat the application as having been 25 withdrawn if the applicant: 26 (a) does not comply with a request to provide information under 27 this section; and 28 (b) does not have a reasonable excuse for not complying. First Home Saver Accounts Bill 2008 No. , 2008 73 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 91 1 (3) If APRA decides under subsection (2) to treat the application as 2 having been withdrawn, APRA must take all reasonable steps to 3 ensure that the applicant is given a notice informing the applicant 4 of: 5 (a) APRA's decision; and 6 (b) the reasons for that decision; 7 as soon as practicable after making the decision. 8 91 Period within which application is to be decided 9 (1) APRA must decide an application for an authorisation as an FHSA 10 provider within 30 days after receiving the application unless 11 APRA extends the period for deciding the application under 12 subsection (2). 13 (2) APRA may extend the period for deciding an application by up to 14 14 days if APRA informs the applicant of the extension: 15 (a) in writing; and 16 (b) within 30 days after receiving the application. 17 (3) If APRA extends the period for deciding an application, it must 18 decide the application within the extended period. 19 (4) If APRA has not decided an application by the end of the period in 20 which it is required to decide the application, APRA is taken to 21 have decided, at the end of the last day of that period, to refuse the 22 application. 23 Subdivision B--Grant of authorisation as FHSA provider 24 92 Grant of authorisation as FHSA provider 25 (1) APRA must grant an authorisation as an FHSA provider to an 26 applicant if, and only if: 27 (a) APRA has no reason to believe that the applicant would fail 28 to comply with this Act, the regulations or the Prudential 29 Standards if the authorisation were granted; and 30 (b) APRA has no reason to believe that the applicant would fail 31 to comply with any condition imposed on the authorisation if 32 it were granted; and 74 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 93 1 (c) the application complies with section 89; and 2 (d) APRA is satisfied that the applicant holds an RSE licence of 3 a class that would enable it to be a trustee of a public offer 4 entity; and 5 (e) APRA is satisfied that the applicant meets the capital 6 requirements under section 93; and 7 (f) the application has not been withdrawn, treated as withdrawn 8 under subsection 90(2) or taken to have been refused under 9 subsection 91(4). 10 Note: Conditions apply to every authorisation as an FHSA provider. See 11 Subdivision C. 12 (2) Otherwise APRA must refuse the application. 13 93 Capital require ments 14 (1) The capital requirements under this section are met by an applicant 15 if it satisfies at least one of the following subsections. 16 (2) An applicant satisfies this subsection if it satisfies subsection 17 29DA(2) of the Superannuation Industry (Supervision) Act 1993. 18 (3) An applicant satisfies this subsection if: 19 (a) it satisfies subsection 29DA(3) of the Superannuation 20 Industry (Supervision) Act 1993 because it is entitled to the 21 benefit of an approved guarantee (within the meaning of that 22 Act); and 23 (b) the approved guarantee is also in respect of its duties as 24 trustee of each FHSA trust of which it is, or is proposing to 25 become, the trustee. 26 (4) An applicant satisfies this subsection if: 27 (a) it satisfies subsection 29DA(4) of the Superannuation 28 Industry (Supervision) Act 1993 because it is entitled to the 29 benefit of an approved guarantee (within the meaning of that 30 Act); and 31 (b) the approved guarantee is also in respect of its duties as 32 trustee of each FHSA trust of which it is, or is proposing to 33 become, the trustee. First Home Saver Accounts Bill 2008 No. , 2008 75 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 94 1 (5) An applicant satisfies this subsection if: 2 (a) it satisfies subsection 29DA(5) of the Superannuation 3 Industry (Supervision) Act 1993; and 4 (b) it has agreed, in writing, to comply with written requirements 5 that have been given to it by APRA; and 6 (c) the written requirements relate to the custody of the assets of 7 each FHSA trust of which it is, or is proposing to become, 8 the trustee. 9 94 Documents required to bear ABN 10 (1) An RSE licensee that is an FHSA provider must ensure that its 11 ABN is included in: 12 (a) each document that it gives to APRA in the capacity of an 13 FHSA provider; and 14 (b) any other document in which it identifies itself as an FHSA 15 provider; and 16 (c) any document in which it identifies itself as a trustee of an 17 FHSA trust. 18 (2) An RSE licensee that is an FHSA provider must ensure that the 19 ABN of an FHSA trust of which it the trustee is included in: 20 (a) each document that it gives to APRA in the capacity of the 21 trustee of the trust; and 22 (b) any document in which it identifies itself as the trustee of the 23 trust. 24 (3) However, an RSE licensee is not required to comply with 25 subsection (1) in respect of a particular document if it has been 26 given written approval by APRA not to be required to ensure that 27 the ABN is included in that document or in a class of documents 28 that includes that document. 29 95 When an authorisation is in force 30 (1) An authorisation as an FHSA provider comes into force at the later 31 of: 32 (a) the time when it is granted; or 76 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 96 1 (b) the time specified in the authorisation as the time when it 2 comes into force. 3 (2) An authorisation as an FHSA provider continues in force, subject 4 to: 5 (a) any imposition of conditions under Subdivision C; or 6 (b) any variation or revocation of those conditions under 7 Subdivision D; 8 until the authorisation is cancelled under Subdivision E. 9 96 APRA to give notice of refusal of applications 10 If APRA refuses an application for an authorisation as an FHSA 11 provider, APRA must take all reasonable steps to ensure that the 12 applicant is given a notice informing it of: 13 (a) APRA's refusal of the application; and 14 (b) the reasons for that refusal; 15 as soon as practicable after refusing the application. 16 Subdivision C--Conditions on authorisation as FHSA provider 17 97 Conditions imposed on all authorisations 18 (1) The following conditions are imposed on all authorisations as an 19 FHSA provider: 20 (a) the FHSA provider must comply with this Act, the 21 regulations and the Prudential Standards; 22 (b) the FHSA provider must perform properly the duties of a 23 trustee in respect of each FHSA trust of which it is the 24 trustee; 25 (c) the FHSA provider must ensure that every FHSA trust of 26 which it is the trustee is maintained solely in respect of the 27 provision of FHSAs; 28 (d) the FHSA provider must continue to meet the capital 29 requirements under section 93; 30 (e) the FHSA provider must continue to hold an RSE licence of a 31 class that would enable it to be a trustee of a public offer 32 entity; First Home Saver Accounts Bill 2008 No. , 2008 77 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 98 1 (f) the FHSA provider must comply with any other conditions 2 specified by regulations made for the purposes of this 3 paragraph. 4 Note 1: Breach of a condition may lead to consequences such as a direction 5 from APRA to comply with the condition (see section 99) or 6 cancellation of the authorisation (see section 107). 7 Note 2: An FHSA provider must notify APRA of certain breaches of 8 conditions: see section 111. 9 Note 3: Additional conditions may be imposed on various types of 10 authorisation (see subsection (2)) or a particular authorisation (see 11 section 98). 12 (2) An additional condition specified by a regulation made for the 13 purposes of this subsection as a condition applying to all 14 authorisations of a specified class is imposed on each authorisation 15 of that class. 16 98 Additional conditions imposed by APRA on individual 17 authorisations 18 (1) APRA may, at any time, impose an additional condition on an 19 authorisation as an FHSA provider by giving the FHSA provider a 20 notice setting out the additional condition. 21 (2) A condition imposed under subsection (1) must not be inconsistent 22 with the following: 23 (a) any condition imposed by, or under, section 97 on an 24 authorisation as an FHSA provider; 25 (b) any condition imposed on the RSE licence of the FHSA 26 provider under the Superannuation Industry (Supervision) 27 Act 1993. 28 Note 1: Breach of a condition may lead to consequences such as a direction 29 from APRA to comply with the condition (see section 99) or 30 cancellation of the authorisation (see section 107). 31 Note 2: An FHSA provider must notify APRA of certain breaches of 32 conditions (see section 111). 33 Note 3: FHSA providers may apply to APRA to have conditions imposed 34 under this section varied or revoked (see section 100). 35 (3) If the FHSA provider is also a financial services licensee: 78 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 99 1 (a) APRA must consult ASIC before imposing a condition that, 2 in APRA's opinion, might reasonably be expected to affect 3 the FHSA provider's ability to provide one or more of the 4 financial services (within the meaning of the Corporations 5 Act 2001) that the FHSA provider provides; and 6 (b) APRA must inform ASIC about the imposition of any 7 condition not covered by paragraph (a) within one week after 8 the condition is imposed. 9 (4) A failure to comply with a requirement of subsection (3) does not 10 affect the validity of the imposition of any condition. 11 (5) An additional condition imposed under this section comes into 12 force on the later of: 13 (a) the day on which APRA gives the FHSA provider the notice 14 of the condition; or 15 (b) the day specified in the notice as the day on which the 16 condition comes into force. 17 99 Directions to comply with conditions on authorisation 18 APRA may direct an FHSA provider to comply with a specified 19 condition on its authorisation as an FHSA provider by a specified 20 time if APRA has reasonable grounds to believe that the FHSA 21 provider has breached the condition. The direction must: 22 (a) be by notice in writing given to the FHSA provider; and 23 (b) specify a time that is reasonable in the circumstances. 24 Note: A failure to comply with a direction may lead to cancellation of the 25 authorisation (see section 107) and may be an offence (see 26 section 112). 27 Subdivision D--Variation or revocation of condition on 28 authorisation as FHSA provider 29 100 Applications for variation or revocation of condition on 30 authorisation as FHSA provider 31 (1) An FHSA provider may apply to APRA for variation or revocation 32 of a condition that APRA has imposed on its authorisation as an 33 FHSA provider under section 98. First Home Saver Accounts Bill 2008 No. , 2008 79 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 101 1 (2) An application under this section must: 2 (a) be in the approved form; and 3 (b) contain the information required by the approved form. 4 101 APRA may request further information 5 (1) APRA may give an FHSA provider that makes an application 6 under section 100 a notice requesting the FHSA provider to give 7 APRA, in writing, specified information relating to the application 8 by a specified time that is reasonable in the circumstances. 9 (2) APRA may decide to treat an application under section 100 as 10 having been withdrawn if the FHSA provider: 11 (a) does not comply with a request to provide information under 12 this section; and 13 (b) does not have a reasonable excuse for not complying. 14 (3) If APRA decides to treat an application under section 100 as 15 having been withdrawn, APRA must take all reasonable steps to 16 ensure that the FHSA provider is given a notice informing it of: 17 (a) APRA's decision; and 18 (b) the reasons for that decision; 19 as soon as practicable after making the decision. 20 102 Period for deciding applications 21 (1) APRA must decide an application under section 100 within 30 22 days of receiving the application, unless APRA extends the period 23 for deciding the application under subsection (2). 24 (2) APRA may extend the period for deciding an application under 25 section 100 by up to 14 days if APRA informs the FHSA provider 26 of the extension: 27 (a) in writing; and 28 (b) within 30 days after receiving the application. 80 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 103 1 (3) If APRA extends the period for deciding an application under 2 section 100, it must decide the application within the extended 3 period. 4 (4) If APRA has not decided an application under section 100 by the 5 end of the period by which it is required to decide the application, 6 APRA is taken to have decided, at the end of the last day of that 7 period, to refuse the application. 8 103 APRA may vary or revoke conditions on authorisation--in 9 accordance with application 10 (1) If an FHSA provider makes an application in accordance with 11 section 100, APRA may vary or revoke a condition that APRA has 12 imposed under section 98 on the FHSA provider's authorisation as 13 an FHSA provider. 14 (2) However: 15 (a) a condition as varied must not be inconsistent with the 16 following: 17 (i) any condition imposed by section 97; 18 (ii) any condition imposed on the RSE licence of the FHSA 19 provider under the Superannuation Industry 20 (Supervision) Act 1993; and 21 (b) if the FHSA provider is also a financial services licensee: 22 (i) APRA must consult ASIC before varying or revoking a 23 condition that, in APRA's opinion, might reasonably be 24 expected to affect the FHSA provider's ability to 25 provide one or more of the financial services (within the 26 meaning of the Corporations Act 2001) that the FHSA 27 provider provides; and 28 (ii) APRA must consult ASIC before varying a condition so 29 that it would, in APRA's opinion, become a condition 30 that might reasonably be expected to have an effect as 31 described in subparagraph (ii); and 32 (iii) APRA must inform ASIC about the variation or 33 revocation of any condition not covered by 34 subparagraph (i) or (ii) within one week after the 35 condition is varied or revoked. First Home Saver Accounts Bill 2008 No. , 2008 81 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 104 1 (3) A failure to comply with a requirement of paragraph (2)(b) does 2 not invalidate the variation or revocation of a condition. 3 (4) APRA is not required to vary or revoke any condition on an 4 authorisation as an FHSA provider in the terms requested by an 5 FHSA provider in an application under section 100. 6 104 APRA may vary or revoke conditions on authorisation--on its 7 own initiative 8 (1) APRA may, on its own initiative, vary or revoke any condition that 9 it imposed on an authorisation as an FHSA provider under 10 section 98. 11 (2) However: 12 (a) a condition as varied must not be inconsistent with the 13 following: 14 (i) any condition imposed by section 97; 15 (ii) any condition imposed on the RSE licence of the FHSA 16 provider under the Superannuation Industry 17 (Supervision) Act 1993; and 18 (b) if the FHSA provider is also a financial services licensee: 19 (i) APRA must consult ASIC before varying or revoking a 20 condition that, in APRA's opinion, might reasonably be 21 expected to affect the FHSA provider's ability to 22 provide one or more of the financial services (within the 23 meaning of the Corporations Act 2001) that the FHSA 24 provider provides; and 25 (ii) APRA must consult ASIC before varying a condition so 26 that it would, in APRA's opinion, become a condition 27 that might reasonably be expected to have an effect as 28 described in subparagraph (i); and 29 (iii) APRA must inform ASIC about the variation or 30 revocation of any condition not covered by 31 subparagraph (i) or (ii) within one week after the 32 condition is varied or revoked. 33 (3) A failure to comply with a requirement of paragraph (2)(b) does 34 not affect the validity of the variation or revocation of a condition. 82 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 105 1 105 Notification of APRA's decisions unde r this Division 2 (1) APRA must give a notice to an FHSA provider if APRA varies or 3 revokes, under section 103 or 104, a condition on the FHSA 4 provider's authorisation as an FHSA provider. 5 (2) The notice must: 6 (a) identify the authorisation condition being varied or revoked; 7 and 8 (b) specify any conditions imposed under section 98 to which the 9 authorisation is subject after the variation or revocation 10 comes into force; and 11 (c) state the reasons for the variation or revocation; and 12 (d) specify the day, not earlier than the day on which APRA 13 gives the notice, on which the variation or revocation comes 14 into force. 15 (3) If APRA refuses an application for a variation or revocation under 16 section 103, APRA must take all reasonable steps to ensure that the 17 applicant is given a notice informing it of: 18 (a) APRA's refusal of the application; and 19 (b) the reasons for the refusal; 20 as soon as practicable after refusing the application. 21 106 When variations or revocations come into force etc. 22 (1) If, under section 103 or 104, APRA varies a condition imposed on 23 an authorisation as an FHSA provider: 24 (a) the variation comes into force on the day specified in the 25 notice under paragraph 105(2)(d); and 26 (b) the variation remains in force until: 27 (i) the condition is varied in an inconsistent manner; or 28 (ii) the condition is revoked; or 29 (iii) the authorisation is cancelled. 30 (2) If, under section 103 or 104, APRA revokes a condition imposed 31 on an authorisation as an FHSA provider, the revocation comes 32 into force on the day specified in the notice under paragraph 33 105(2)(d). First Home Saver Accounts Bill 2008 No. , 2008 83 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 107 1 Subdivision E--Cancelling authorisation as FHSA provider 2 107 Cancellation of authorisation as FHSA provider 3 (1) Subject to subsection (3), APRA may, in writing, cancel an 4 authorisation as an FHSA provider. 5 Note: In some circumstances, APRA must inform or consult ASIC before 6 cancelling an authorisation (see section 108). 7 (2) Without limiting subsection (1), APRA may cancel an 8 authorisation as an FHSA provider under that subsection if: 9 (a) the FHSA provider has requested, in the approved form, that 10 the authorisation be cancelled; or 11 (b) the FHSA provider is a disqualified person for the purposes 12 of Part 15 of the Superannuation Industry (Supervision) Act 13 1993 (as that Part applies under subsection 114(2)); or 14 (c) the FHSA provider has breached a condition imposed on the 15 authorisation; or 16 (d) APRA has reason to believe that the FHSA provider will 17 breach a condition imposed on the authorisation; or 18 (e) the FHSA provider has failed to comply with a direction by 19 APRA under section 99; or 20 (f) APRA has reason to believe that the FHSA provider will fail 21 to comply with a direction by APRA under section 99. 22 (3) If APRA cancels an authorisation as an FHSA provider it must 23 take all reasonable steps to ensure that the FHSA provider is given 24 a notice informing it: 25 (a) that APRA has cancelled the authorisation; and 26 (b) of the reasons for the cancellation. 27 108 Cancellation of authorisation for FHSA provider that is 28 financial services licensee 29 (1) Before cancelling the authorisation as an FHSA provider of an 30 FHSA provider that is also a financial services licensee, APRA 31 must consult ASIC if, in APRA's opinion, the cancellation might 32 reasonably be expected to affect the FHSA provider's ability to 84 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licens ees as FHSA providers Di vision 1 Section 109 1 provide one or more of the financial services (within the meaning 2 of the Corporations Act 2001) that the FHSA provider provides. 3 (2) If APRA cancels the authorisation as an FHSA provider of an 4 FHSA provider that is also a financial services licensee, APRA 5 must inform ASIC of the cancellation within one week after the 6 cancellation. 7 (3) A failure to comply with a requirement of this section does not 8 affect the validity of the cancellation of an authorisation as an 9 FHSA provider. 10 109 APRA may allow authorisation as FHSA provider to continue in 11 effect 12 In a notice that APRA gives to an FHSA provider cancelling its 13 authorisation as an FHSA provider, APRA may specify that the 14 authorisation continues in effect as though the cancellation had not 15 happened for the purposes of: 16 (a) a specified provision, administered by APRA, of this Act or 17 the regulations; or 18 (b) the Prudential Standards; or 19 (c) a specified provision, administered by APRA, of any other 20 law of the Commonwealth; 21 in relation to specified matters, a specified period, or both. 22 Subdivision F--Offences and self-incrimination 23 110 Providing an FHSA while unauthorised etc. 24 (1) A person commits an offence if: 25 (a) the person purports to provide an FHSA; and 26 (b) the person is not an RSE licensee that holds an authorisation 27 as an FHSA provider; and 28 (c) either: 29 (i) the person is not an ADI; or 30 (ii) the person is an ADI with an authority granted under 31 section 9 of the Banking Act 1959 that does not allow 32 the person to provide an FHSA; and First Home Saver Accounts Bill 2008 No. , 2008 85 [Page Break] Di vision 1 Authorisation of RSE licensees as FHSA providers Section 111 1 (d) either: 2 (i) the person is not a life insurance company; or 3 (ii) the person is a life insurance company with conditions 4 of registration imposed under section 22 of the Life 5 Insurance Act 1995 that do not allow the person to 6 provide an FHSA. 7 (2) A person that contravenes subsection (1) commits an offence. 8 Penalty: Imprisonment for 2 years, or 120 penalty units, or both. 9 (3) This section does not prevent an FHSA provider from engaging or 10 authorising persons to act on its behalf. 11 111 Failing to notify breach of condition on authorisation 12 (1) If an FHSA provider becomes aware that: 13 (a) the FHSA provider has breached or will breach a condition 14 imposed on its authorisation as an FHSA provider; and 15 (b) the breach is or will be significant (see subsection (2)); 16 the FHSA provider must give APRA a written report about the 17 breach as soon as practicable, and in any case no later than 10 18 business days, after becoming aware of the breach. 19 (2) For the purposes of subsection (1), a breach is or will be 20 significant if the breach is or will be significant having regard to 21 any one or more of the following factors: 22 (a) the number or frequency of similar previous breaches; 23 (b) the impact the breach has or will have on the FHSA 24 provider's ability to fulfil its obligations as an FHSA 25 provider; 26 (c) the extent to which the breach indicates that the FHSA 27 provider's arrangements to ensure compliance with this Act, 28 the regulations and the Prudential Standards might be 29 inadequate; 30 (d) the actual or potential financial loss arising or that will arise 31 from the breach to the holders of FHSAs provided by the 32 FHSA provider; 33 (e) any other matters specified in regulations made for the 34 purposes of this paragraph. 86 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Authorisation of RSE licensees as FHSA providers Di vision 1 Section 112 1 (3) A person commits an offence if: 2 (a) the person is an FHSA provider; and 3 (b) the person is in breach of subsection (1). 4 Penalty: 50 penalty units. 5 (4) Subsection (2) is an offence of strict liability. 6 Note: For strict liability, see section 6.1 of the Criminal Code. 7 112 Not complying with direction to comply with condition on 8 authorisation 9 (1) An FHSA provider must comply with a direction given to it under 10 section 99 within the time specified in the direction. 11 (2) A person commits an offence if: 12 (a) the person is an FHSA provider; and 13 (b) the person is in breach of subsection (1). 14 Penalty: 60 penalty units. 15 (3) Subsection (2) is an offence of strict liability. 16 Note: For strict liability, see section 6.1 of the Criminal Code. 17 113 Breach does not affect validity of issue of FHSA etc. 18 A contravention of section 110, 111 or 112 does not affect the 19 validity of a transaction. 20 First Home Saver Accounts Bill 2008 No. , 2008 87 [Page Break] Di vision 2 Application of the Superannuation Industry (Supervision) Act 1993 Section 114 1 2 Division 2--Application of the Superannuation Industry 3 (Supervision) Act 1993 4 114 Modified application of the Superannuation Industry 5 (Supervision) Act 1993 6 (1) The object of this section is to apply certain prudential provisions 7 of the Superannuation Industry (Supervision) Act 1993 to RSE 8 licensees that hold an authorisation as an FHSA provider. 9 (2) For the purposes of this Act, the provisions of the Superannuation 10 Industry (Supervision) Act 1993 apply: 11 (a) to an FHSA provider that holds such an authorisation in the 12 same way that they apply to an RSE licensee that is a trustee 13 of a public offer superannuation fund; and 14 (b) to an FHSA trust in the same way that they apply to a public 15 offer superannuation fund; and 16 (c) to the holder of an FHSA provided by such an FHSA 17 provider in the same way that they apply to a beneficiary or 18 member of a public offer superannuation fund; and 19 (d) to an FHSA provided by such an FHSA provider in the same 20 way that they apply to a superannuation interest. 21 Example: An FHSA provider that is the trustee of an FHSA trust may commit an 22 offence under section 35A of the Superannuation Industry 23 (Supervision) Act 1993 as applied by this section if the provider fails 24 to comply with the obligations in section 35A concerning the 25 accounting records of the FHSA trust. 26 (3) However: 27 (a) subsection (2) does not apply to the provisions of the 28 Superannuation Industry (Supervision) Act 1993 mentioned 29 in section 115; and 30 (b) the remaining provisions of that Act apply under 31 subsection (2) as modified by this Division. 88 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Application of the Superannuation Industry (Supervision) Act 1993 Di vision 2 Section 115 1 115 Provisions of the Superannuation Industry (Supervision) Act 1993 2 that do not apply 3 For the purposes of paragraph 114(3)(a), the provisions of the 4 Superannuation Industry (Supervision) Act 1993 that do not apply 5 are as follows: 6 (a) sections 1 to 4 and section 10A; 7 (b) Parts 2A, 2B and 3; 8 (c) Part 5; 9 (d) sections 54 and 55A and subsection 59(1A); 10 (e) Part 7, other than: 11 (i) sections 65 and 66; and 12 (ii) subsections 67(1), (2), (3) and (7); and 13 (iii) section 68; 14 (f) Part 8, other than: 15 (i) sections 69, 70B, 70C, 70D, 70E, 71D, 71E, 73, 75, 83, 16 84 and 85; and 17 (ii) section 71 (other than paragraph 71(1)(c)); 18 (g) Parts 9 to 11; 19 (h) sections 104, 107, 108, 117 and 118; 20 (i) Parts 24, 24A, 24B and 25A; 21 (j) sections 337A, 342, 349, 349A and 353; 22 (k) Part 32. 23 116 General modifications of applicable provisions of the 24 Superannuation Industry (Supervision) Act 1993 25 The provisions of the Superannuation Industry (Supervision) Act 26 1993 that apply for the purposes of this Act under subsection 27 114(2) apply with the following modifications: 28 (a) treat references to "this Act" as references to this Act 29 (including provisions of the Superannuation Industry 30 (Supervision) Act 1993 that apply for the purposes of this 31 Act); 32 (b) treat references to "the regulations" as references to the 33 regulations under this Act; First Home Saver Accounts Bill 2008 No. , 2008 89 [Page Break] Di vision 2 Application of the Superannuation Industry (Supervision) Act 1993 Section 117 1 (c) treat references to a year of income as references to a 2 financial year; 3 (d) treat conduct (including an omission) that is inconsistent with 4 the Prudential Standards in the same way as conduct 5 (including an omission) that is inconsistent with the 6 Superannuation Industry (Supervision) Act 1993; 7 (e) treat conduct (including an omission) that is required or 8 authorised by, or otherwise performed in connection with, the 9 Prudential Standards in the same way as conduct (including 10 an omission) that is required or authorised by, or otherwise 11 performed in connection with, the Superannuation Industry 12 (Supervision) Act 1993. 13 117 References to Prudential Standards 14 (1) The Superannuation Industry (Supervision) Act 1993 applies in 15 accordance with subsection 114(2) with the modifications set out 16 in this section. 17 (2) Treat the reference in paragraph 130A(a) of the Superannuation 18 Industry (Supervision) Act 1993 to "this Act" as including the 19 Prudential Standards. 20 (3) Insert after paragraph 133(1)(c) of the Superannuation Industry 21 (Supervision) Act 1993 the following paragraph: 22 (d) the FHSA provider breaches: 23 (i) the Prudential Standards; or 24 (ii) its authorisation as an FHSA provider; or 25 (4) Insert after paragraph 135(1)(c) of the Superannuation Industry 26 (Supervision) Act 1993 the following paragraph: 27 (ca) the Prudential Standards; and 28 (5) Treat the reference in paragraph 139(b) of the Superannuation 29 Industry (Supervision) Act 1993 to "this Act" as including the 30 Prudential Standards. 31 (6) Treat the reference in subsection 320(1) of the Superannuation 32 Industry (Supervision) Act 1993 to "this Act" as including the 33 Prudential Standards. 90 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Application of the Superannuation Industry (Supervision) Act 1993 Di vision 2 Section 118 1 (7) Treat the reference in section 341 of the Superannuation Industry 2 (Supervision) Act 1993 to "this Act" as including the Prudential 3 Standards. 4 118 Persons who may be appointed to be custodians of FHSA 5 trusts--approved guarantee etc. 6 The requirement in paragraph 123(1)(b) of the Superannuation 7 Industry (Supervision) Act 1993 is satisfied in relation to a person 8 who is the custodian of an FHSA trust if: 9 (a) the person satisfies the requirement in that paragraph in 10 relation to the person's duties as the custodian of a 11 superannuation entity, because of an approved guarantee; and 12 (b) the trustee of the FHSA trust is also entitled to the benefit of 13 the approved guarantee in respect of the due performance of 14 the person's duties as custodian of the FHSA trust. 15 119 Transfer of FHSA trusts 16 (1) The Superannuation Industry (Supervision) Act 1993 applies in 17 accordance with subsection 114(2) with the modifications set out 18 in this section. 19 (2) Omit references in Part 18 of the Superannuation Industry 20 (Supervision) Act 1993 to an approved deposit fund. 21 (3) Replace paragraph 146(1)(d) of the Superannuation Industry 22 (Supervision) Act 1993 with the following paragraph: 23 (d) the transferee fund has an RSE licensee that holds an 24 authorisation as an FHSA provider. 25 120 Covenants to be included in gove rning rules--investment 26 manage ment 27 (1) The Superannuation Industry (Supervision) Act 1993 applies in 28 accordance with subsection 114(2) with the modifications set out 29 in this section. First Home Saver Accounts Bill 2008 No. , 2008 91 [Page Break] Di vision 2 Application of the Superannuation Industry (Supervision) Act 1993 Section 120 1 (2) Insert at the beginning of paragraph 52(2)(f) of the Superannuation 2 Industry (Supervision) Act 1993 "if paragraph (fa) does not 3 apply--". 4 (3) Add at the end of paragraph 52(2)(f) of the Superannuation 5 Industry (Supervision) Act 1993 the following subparagraph: 6 (v) the risk of capital losses in light of the purpose of the 7 FHSA and the minimum term of the FHSA having 8 regard to subparagraph 32(1)(c)(i) or (ii) of the First 9 Home Saver Accounts Act 2008; 10 (4) Insert after paragraph 52(2)(f) of the Superannuation Industry 11 (Supervision) Act 1993 the following paragraph: 12 (fa) if the FHSA provider allows individual FHSA holders to 13 choose between investment options specified by the FHSA 14 provider--to formulate and give effect to an investment 15 strategy for each option having regard to the matters 16 mentioned in subparagraphs 52(2)(f)(i), (ii), (iii), (iv) and (v); 17 (5) Omit subsection 52(4) of the Superannuation Industry 18 (Supervision) Act 1993. 19 (6) Treat the reference in subsection 55(5) of the Superannuation 20 Industry (Supervision) Act 1993 to "an investment strategy 21 formulated under a covenant referred to in paragraph 52(2)(f)" as 22 including a reference to an investment option formulated under a 23 covenant referred to in paragraph 52(2)(fa) of that Act (as it applies 24 because of subsection (4) of this section). 25 (7) Replace paragraph 58(2)(d) of the Superannuation Industry 26 (Supervision) Act 1993 with the following paragraph: 27 (d) a direction given by an FHSA holder by way of a choice 28 mentioned in paragraph 52(2)(fa); or 29 92 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Prudential Standards Division 3 Section 121 1 2 Division 3--Prudential Standards 3 121 Prudential Standards 4 (1) APRA may, in writing, determine standards (known as Prudential 5 Standards) in relation to prudential matters to be complied with 6 by: 7 (a) all RSE licensees that are FHSA providers; or 8 (b) a specified class of RSE licensees that are FHSA providers; 9 or 10 (c) one or more specified RSE licensees that are FHSA 11 providers; 12 in order to protect the interests of holders of FHSAs provided by 13 the FHSA providers concerned. 14 (2) A Prudential Standard may impose different requirements to be 15 complied with in different situations or in respect of different 16 activities. 17 (3) A Prudential Standard is of no effect to the extent that it conflicts 18 with this Act, the regulations or the Financial Sector (Collection of 19 Data) Act 2001. 20 (4) A Prudential Standard may provide for APRA to exercise powers 21 and discretions under the Prudential Standard, including (but not 22 limited to) discretions to approve, impose, adjust or exclude 23 specific prudential requirements in relation to one or more 24 specified RSE licensees that are FHSA providers. 25 (5) APRA may, in writing, vary or revoke a Prudential Standard. 26 (6) A Prudential Standard referred to in paragraph (1)(c), or an 27 instrument varying or revoking such a Prudential Standard, has 28 effect: 29 (a) from the day on which the Prudential Standard, variation or 30 revocation is made; or 31 (b) if the Prudential Standard, variation or revocation specifies a 32 later day--from that later day. First Home Saver Accounts Bill 2008 No. , 2008 93 [Page Break] Di vision 3 Prudential Standards Section 122 1 (7) The following instruments made under this section are not 2 legislative instruments: 3 (a) a Prudential Standard referred to in paragraph (1)(c); 4 (b) an instrument varying or revoking a Prudential Standard 5 referred to in paragraph (1)(c). 6 (8) Otherwise, an instrument made under this section is a legislative 7 instrument. 8 122 Notice of determination, variation or revocation of certain 9 Prudential Standards 10 (1) If APRA determines or varies a Prudential Standard referred to in 11 paragraph 121(1)(c) it must, as soon as practicable, give a copy of 12 the standard, or of the variation, to the FHSA provider, or to each 13 FHSA provider, to which the standard applies. 14 (2) If APRA revokes a Prudential Standard referred to in paragraph 15 121(1)(c) it must, as soon as practicable, give notice of the 16 revocation to the FHSA provider, or to each FHSA provider, to 17 which the standard applied. 18 (3) A failure to comply with subsection (1) or (2) does not affect the 19 validity of the action concerned. 20 94 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Other prudential provisions Di vision 4 Section 123 1 2 Division 4--Other prudential provisions 3 123 Requirement for ADIs and life insurance companies to notify 4 APRA of intention to provide FHSAs 5 (1) A life insurance company or ADI commits an offence if: 6 (a) the life insurance company or ADI provides an FHSA or 7 offers to provide an FHSA; and 8 (b) the life insurance company or ADI had not previously 9 informed APRA in writing of its intention to provide FHSAs. 10 Penalty: 120 penalty units. 11 Validity of transaction not affected by contravention 12 (2) A contravention of subsection (1) does not affect the validity of a 13 transaction. 14 124 Obligations of FHSA providers in relation to certain life policies 15 (1) This section applies if an FHSA provider that is a life insurance 16 company provides an FHSA as a life policy that is an 17 investment-linked contract. 18 (2) In considering the specified class or group of assets (as mentioned 19 in paragraph 14(4)(a) of the Life Insurance Act 1995) covered 20 under the policy, the provider must have regard to the following 21 matters: 22 (a) the extent to which the composition of the class or group 23 exposes FHSA holders to risks from inadequate 24 diversification; 25 (b) the: 26 (i) risk of a reduction in the value of the units to which the 27 class or group relates; and 28 (ii) liquidity of the class or group; 29 in light of the purpose of the FHSA and the minimum term of 30 the FHSA if the requirements in subparagraph 32(1)(c)(i) or 31 (ii) are met; First Home Saver Accounts Bill 2008 No. , 2008 95 [Page Break] Di vision 4 Other prudential provisions Section 125 1 (c) any other relevant matter. 2 (3) To avoid doubt, if the life policy allows an FHSA holder to choose 3 between different investment options specified by the FHSA 4 provider, the provider must, in considering the class or group of 5 assets covered under each of those options, also have regard to the 6 matters mentioned in paragraphs (2)(a) to (c). 7 125 Protection for small balances 8 (1) A provider of an FHSA commits an offence if: 9 (a) the provider allows an amount to be paid from the FHSA; 10 and 11 (b) the amount is an amount of fees owing to the FHSA provider 12 for providing the FHSA; and 13 (c) the amount of those fees is for a reporting period that applies 14 to the FHSA; and 15 (d) the total earnings or other return credited to the FHSA for the 16 reporting period is less than the amount of those fees; and 17 (e) the balance of the FHSA is $1,000 or less. 18 Penalty: 100 penalty units. 19 Note: Chapter 2 of the Criminal Code sets out the general principles of 20 criminal responsibility and Part IA of the Crimes Act 1914 contains 21 provisions dealing with penalties. 22 (2) Subsection (1) does not apply if: 23 (a) the FHSA holder consents in writing to the payment; or 24 (b) the FHSA is an interest in an FHSA trust and the earnings or 25 other return credited to the FHSA are calculated by reference 26 to the price of units in the trust; or 27 (c) the FHSA is provided by a life insurance company. 28 Note: A defendant bears an evidential burden in relation to the matters in 29 subsection (2) (see subsection 13.3(3) of the Criminal Code). 30 (3) Subsection (1) also does not apply if: 31 (a) the total amount of fees paid for the reporting period from all 32 FHSAs provided by the provider is greater than the total 33 amount of earnings or other return credited by the provider to 34 all those FHSAs for the reporting period; and 96 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Other prudential provisions Di vision 4 Section 125 1 (b) the amount of fees paid from an FHSA for that period bears 2 the same proportion to the total amount of fees mentioned in 3 paragraph (a) that the: 4 (i) earnings or other return credited to the FHSA for that 5 period bears to the total amount of earnings or other 6 return mentioned in paragraph (a); or 7 (ii) balance of the FHSA at the end of that period bears to 8 the total of the balances of all FHSAs provided by the 9 provider at the end of that period. 10 Note: A defendant bears an evidential burden in relation to the matters in 11 subsection (3) (see subsection 13.3(3) of the Criminal Code). 12 Validity of transaction not affected by contravention 13 (4) A contravention of subsection (1) does not affect the validity of a 14 transaction. 15 First Home Saver Accounts Bill 2008 No. , 2008 97 [Page Break] Section 126 1 2 Part 8--Miscellaneous 3 4 126 Annual reports 5 (1) The Commissioner must, as soon as practicable after 30 June in 6 each financial year, prepare and give to the Minister a report on the 7 working of this Act during that year, to the extent that that 8 Commissioner has the general administration of this Act. 9 (2) The Minister must cause a copy of the report to be tabled in each 10 House of the Parliament within 15 sitting days of that House after 11 the day on which the Minister receives the report. 12 Note: See also section 34C of the Acts Interpretation Act 1901, which 13 contains extra rules about annual reports. 14 (3) For the purposes of section 34C of the Acts Interpretation Act 15 1901, a report that is required by subsection (1) to be furnished as 16 soon as practicable after 30 June in a year shall be taken to be a 17 periodic report relating to the working of this Act during the year 18 ending on that 30 June. 19 127 Civil immunity where defendant was complying with this Act 20 An FHSA provider is not liable in a civil action or civil proceeding 21 in relation to an act done in fulfilment of an obligation imposed by 22 this Act or the regulations. 23 128 Payment out of a fund in accordance with the Bankruptcy Act 24 1966 25 If a holder of an FHSA becomes a bankrupt, within the meaning of 26 subsection 5(1) of the Bankruptcy Act 1966, nothing in this Act or 27 the regulations prevents the FHSA provider from paying to the 28 trustee in bankruptcy an amount out of the FHSA that is property 29 divisible amongst the FHSA holder's creditors, within the meaning 30 of section 116 of the Bankruptcy Act 1966. 98 First Home Saver Accounts Bill 2008 No. , 2008 [Page Break] Section 129 1 129 Compensation for acquisition of property 2 (1) If the operation of this Act would result in an acquisition of 3 property from a person otherwise than on just terms, the 4 Commonwealth is liable to pay a reasonable amount of 5 compensation to the person. 6 (2) If the Commonwealth and the person do not agree on the amount 7 of the compensation, the person may institute proceedings in the 8 Federal Court of Australia for the recovery from the 9 Commonwealth of such reasonable amount of compensation as the 10 court determines. 11 (3) In this section: 12 acquisition of property has the same meaning as in paragraph 13 51(xxxi) of the Constitution. 14 just terms has the same meaning as in paragraph 51(xxxi) of the 15 Constitution. 16 130 State insurance 17 This Act does not apply with respect to State insurance that does 18 not extend beyond the limits of the State concerned. 19 131 Regulations 20 (1) The Governor-General may make regulations prescribing matters: 21 (a) required or permitted by this Act to be prescribed; or 22 (b) necessary or convenient to be prescribed for carrying out or 23 giving effect to this Act. 24 (2) Without limiting subsection (1), the regulations may: 25 (a) prescribe fees in respect of any matter under this Act; and 26 (b) prescribe penalties not exceeding 10 penalty units in respect 27 of offences against the regulations. First Home Saver Accounts Bill 2008 No. , 2008 99