Changes to First Home Saver Account

Effective for homes purchased from 25 May 2011:

You want to buy your first home before you have put $1,000 into your account in 4 separate financial years (they do not have to be in a row)

If this happens:
• Providing the 4 year qualifying period has been met, your savings can be released to go towards your mortgage. The conditions are:
i. You must notify us within 30 days of purchasing a home
ii. No further contributions can be paid to the account from the date of notifications. However, any Government contributions and account earnings will still be paid into your account.
iii. At the end of the minimum qualifying period, you must apply to have the account closed and the balance of the account paid to your mortgage. If you sell the home before the qualifying period, you must close the account and have the balance paid to your superannuation.

New Government Thresholds effective from 1 July 2011:

When you put money into your account the Government puts money in too
• Government FHSA contribution threshold increases from $5,000 to $5,500.
• The Government maximum contribution increases from $850 to $935
• The account balance cap is $85,000