Schedule 1 Amendments
(regulation 3)
[1] After regulation 7.8.22A
insert
7.8.22B Return
of financial product: first home saver accounts
(1) For paragraph 992A (4) (b) of the Act,
this regulation applies in relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, it
is a requirement of the exercise of the right to return the FHSA in
circumstances in which the moneys paid to acquire the FHSA are subject to
payment restrictions that:
(a) the FHSA holder must:
(i) notify the FHSA provider, in
writing or electronically, that the FHSA holder wishes to exercise the right to
return the FHSA; and
(ii) ask the FHSA provider to pay the
entire balance of the FHSA to the FHSA holder; and
(iii) give the FHSA provider a written
declaration that the FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in
writing or electronically, that the FHSA holder wishes to exercise the right to
return the FHSA; and
(ii) no later than 1 month after notifying
the FHSA provider, ask the FHSA provider to pay the entire balance of the FHSA
to another FHSA nominated in the request.
(3) If the FHSA holder has held another FHSA, it is a
requirement of the exercise of the right to return the FHSA in circumstances in
which the moneys paid to acquire the FHSA are subject to payment restrictions
that the FHSA holder must:
(a) notify the FHSA provider, in writing or
electronically, that the FHSA holder wishes to exercise the right to return the
FHSA; and
(b) no later than 1 month after notifying the
FHSA provider, ask the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
[2] Part 7.9, after Division 3
insert
Division 3A Rights and obligations related to Product Disclosure
Statement — first home saver accounts
7.9.08E Application forms
For paragraph 1016A (2) (f) of the Act,
the following situation in which a restricted issue occurs is prescribed:
(a) an FHSA has become inactive as described in subsection 22 (1)
of the First Home Saver Accounts Act 2008;
(b) the FHSA provider has sought to pay the
entire balance of the FHSA to the superannuation interest mentioned in subsection
22 (3) of that Act.
[3] Regulation 7.9.10D
substitute
7.9.10D Manner
of giving Product Disclosure Statement for first home saver accounts
(1) For paragraph 1015C (5) (a) of the Act:
(a) if a Product Disclosure Statement:
(i) relates only to 1 or more FHSA
products; and
(ii) is given to a person or the
person’s agent personally;
the Statement for the FHSA product or
products must be the first document about FHSA products that is given to the
person or agent at that time, other than a covering letter of no more than 1
page; but
(b) paragraph (a) does not require the Statement for
the FHSA product or products to be given to the person or agent at that time
before other documents that do not relate to the FHSA product or products.
(2) For paragraph 1015C (5) (a) of the Act:
(a) if a Product Disclosure Statement:
(i) relates only to 1 or more FHSA
products; and
(ii) is given by sending it to the
address or fax number of a person or the person’s agent;
the Statement for the FHSA product or
products must be the first document about FHSA products that is given to the
person or agent at that time, other than a covering letter or fax coversheet of
no more than 1 page; but
(b) paragraph (a) does not require the Statement for
the FHSA product or products to be given to the person or agent at that time
before other documents that do not relate to the FHSA product or products.
[4] Subregulation 7.9.10E (2)
omit
materially misleading
insert
misleading
[5] After regulation 7.9.13
insert
7.9.13A Remedies
for person acquiring financial product under defective Product Disclosure
Statement: first home saver accounts
(1) For subsection 1016F (3) of the Act, this
regulation applies in relation to an FHSA.
(2) If the FHSA holder has never held another FHSA, to
exercise a right of return for the financial product in circumstances in which
the moneys paid to acquire the FHSA are subject to payment restrictions:
(a) the FHSA holder must:
(i) notify the FHSA provider, in
writing, that the FHSA holder wishes to exercise the right to return the FHSA;
and
(ii) ask the FHSA provider to pay the
entire balance of the FHSA to the FHSA holder; and
(iii) give the FHSA provider a written
declaration that the FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in
writing, that the FHSA holder wishes to exercise the right to return the FHSA;
and
(ii) no later than 1 month after notifying
the FHSA provider, ask the FHSA provider to pay the entire balance of the FHSA
to another FHSA nominated in the request.
(3) If the FHSA holder has held another FHSA, to
exercise a right of return for the financial product in circumstances in which
the moneys paid to acquire the FHSA are subject to payment restrictions, the
FHSA holder must:
(a) notify the FHSA provider, in writing, that
the FHSA holder wishes to exercise the right to return the FHSA; and
(b) no later than 1 month after notifying the
FHSA provider, ask the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
[6] Regulation 7.9.14, heading
substitute
7.9.14 Remedies
for person acquiring financial product under defective Product Disclosure
Statement: superannuation and RSAs
[7] Regulation 7.9.65, heading
substitute
7.9.65 Return of financial
product: general
[8] After regulation 7.9.65
insert
7.9.65A Return
of financial product: first home saver accounts
(1) For subsection 1019B (2) of the Act, this
regulation applies in relation to an FHSA.
(2) If the FHSA holder has
never held another FHSA, it is a requirement of the exercise of the right to
return the FHSA in circumstances in which the moneys paid to acquire the FHSA
are subject to payment restrictions that:
(a) the FHSA
holder must:
(i) notify the FHSA provider, in
writing, that the FHSA holder wishes to exercise the right to return the FHSA;
and
(ii) ask the FHSA provider to pay the
entire balance of the FHSA to the FHSA holder; and
(iii) give the FHSA provider a written
declaration that the FHSA holder has never previously held an FHSA; or
(b) the FHSA holder must:
(i) notify the FHSA provider, in
writing, that the FHSA holder wishes to exercise the right to return the FHSA;
and
(ii) no later than 1 month after notifying
the FHSA provider, ask the FHSA provider to pay the entire balance of the FHSA
to another FHSA nominated in the request.
(3) If the FHSA holder has held another FHSA, it is a
requirement of the exercise of the right to return the FHSA in circumstances in
which the moneys paid to acquire the FHSA are subject to payment restrictions
that the FHSA holder must:
(a) notify the FHSA provider, in writing, that
the FHSA holder wishes to exercise the right to return the FHSA; and
(b) no later than 1 month after notifying the
FHSA provider, ask the FHSA provider to pay the entire balance of the FHSA to
another FHSA nominated in the request.
[9] Regulation 7.9.66, heading
substitute
7.9.66 Return of financial product: superannuation
and RSAs
[10] Schedule 10B, subitem 5 (1)
omit
You can only use your savings in
three ways:
insert
You can only withdraw your
savings for three purposes:
[11] Schedule 10B, subitem 5 (1)
omit
· You put money into your account the same way as you would make
deposits into a normal bank account. You can do this at any time, and for as
long as you need to save.
insert
· You put money into your [account/fund] the same way as you
would [make deposits/make contributions/put money] into a normal [bank
account/credit union account/building society account/other account/managed fund].
You can do this at any time, and for as long as you need to save.
[12] Schedule 10B, subitem 6 (1)
omit
There is a low rate
of tax on the interest your savings earn
· Any income that your investment earns will be taxed at a low rate
of 15%. This tax will be deducted from your investment earnings and paid to the
Tax Office.
insert
There is a low rate of tax on [the interest your
savings earn/your investment earnings]
· Earnings on First Home Saver Accounts are taxed at 15% but this is
paid to the Tax Office by the account provider.
[13] Schedule 10B, paragraph 7 (2) (b)
substitute
(b) the nature of the return
that the investments may generate (for example, fixed interest, variable
interest, rental income or capital gains);
[14] Schedule 10B, paragraph 8 (d)
omit
[15] Schedule 10B, item 11
substitute
11 Contents
of section 8 (How to open an account)
Section 8 of the Product Disclosure Statement must
contain:
(a) information about how to acquire the
product; and
(b) information about the effect and length of
the cooling‑off period; and
(c) a statement that money from the product can
be transferred to another FHSA product.
[16] Schedule 10B, subparagraphs 15 (2) (c) (i) and (ii)
substitute
(i) the services or functions to which
the costs relate; and
(ii) the costs; and
[17] Schedule 10B, subparagraph 15 (2) (f) (v)
omit
the period of time;
insert
the period of time.
[18] Schedule 10B, paragraph 15 (2) (g)
omit
[19] Schedule 10B, paragraph 16 (2) (c)
substitute
(c) management costs
that are deducted directly from the account holder’s account;
[20] Schedule 10B, subitem 16 (4),
definition of ICR
substitute
ICR, for a fund, means the ratio of:
(a) the sum of:
(i) the fund’s management costs that
are not deducted directly from an account holder’s account; and
(ii) any other costs listed in paragraphs
(2) (a) to (f) that are not deducted directly from the account holder’s
account; to
(b) the fund’s total average net assets.