The Government proposes that savings in an FHSA can be paid into an approved mortgage after the end of a minimum qualifying period, rather than requiring it to be paid to a superannuation account. The current rules require that FHSA holders keep their savings in an FHSA for 4 financial years before they are able to use those savings to buy a home. At present if an account holder buys a home before the end of that 4-year period, the balance of their FHSA must be transferred to their superannuation.

The changes will apply for houses purchased after assent of the legislation that will give effect to this measure.

Comment:

This measure will allow an earlier access to the savings instead of waiting to meet a condition of release under superannuation rules and the ability to reduce mortgage debt.