Finally even more Legislative changes - First Home Saver Accounts

The draft legislation to implement the Government’s First Home Saver Accounts has been released.  At a quick glance – there is no role for SMSFs in offering First Home Saver Accounts.  However, an account-balance in a Saver Account may be transferable as a superannuation contribution to a complying superannuation fund, including self managed superannuation funds.

Our perception of the market is that Saver Accounts will be offered by banks and industry super funds.  We do no think life companies or public offer super funds who can offer these products will necessarily do so so as they require significant software and system developments and pose significant regulatory hurdles.  If these entities are not involved in the housing loan market, into which these accounts can crystallise, then that will be a further disincentive.