A first home saver account (FHSA) is a special purpose account designed to help people save for their first home. Once a year, the government will make a lump-sum contribution to the FHSA, based on the amount deposited into the account during that year.
To open a first home saver account, you must be an individual who:
You can open an FHSA with an ordinary financial institution but you need to meet qualifying conditions before you can access the funds – you must meet the 'four-year rule'. Once you've accessed the money, you must use it for a deposit or for other costs associated with building or buying your first home. If you don't, you may be liable for the FHSA misuse tax.
FHSAs attract the following benefits:
In the 2014-15 Budget, the Federal Government announced changes to abolish the first home saver accounts scheme. At the time of publication (October 2014), these changes had not become law.