The Corporations Amendment Regulations 2011 (No. 1) amend the Corporations Regulations 2001 content required for short form product disclosure statement requirements for First Home Saver Accounts based on changes made to the regime through Schedule 3 of the Tax Laws Amendment (2011 Measures No. 1) Act 2011, in particular the use of the money saved should a dwelling be acquired before all the criteria are met.

The Tax Laws Amendment (2011 Measures No. 1) Act 2011 amends the operation of FHSAs by allowing savings in a FHSA to 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, if a home is purchased prior to the minimum release conditions being met. The new rules will apply to houses purchased after 25 May 2011.

The transitional arrangements for providers of all FHSAs provide that until 26 August 2011 a provider is deemed to have complied with the new requirements where the provider has placed on their website the information set out in Schedule 1, being items [2] to [5]. To comply, the provider is also required to notify FHSA providers that the information is available on the relevant website. If requested, a hard copy has to also be made available.

This provision also allows the provider to comply immediately by providing the required information immediately in the relevant PDS.

UPDATE: Download the First Home Saver Accounts Act as amended, taking into account amendments up to Tax Laws Amendment (2011 Measures No. 1) Act 2011.