The Treasurer has introduced the 3 Bills that contains the legislation for First Home Saver Accounts:

• The First Home Saver Accounts Bill 2008,
  which establishes the accounts, provides for the payment of the
  Government contribution and governs their operation and prudential
  regulation.
• The First Home Saver Accounts (Consequential
  Amendments) Bill 2008 which contains consequential amendments to other
  Commonwealth laws, chiefly the taxation and corporations law.
• The Income Tax (First Home Saver Accounts Misuse Tax) Bill 2008 which imposes
  the misuse tax to clawback benefits obtained by an account holder who
  improperly uses the accounts.

The  main features of the accounts are as follows:

• An individual can open an account if they are aged 18 or
  over and under 65; have not previously purchased or built a first home
  in which to live; do not have, or have not previously had, a First Home
  Saver Account; and provide their tax file number to the provider.
• Personal contributions can be made by the account holder or a parent or
  grandparent, and can only be made from after-tax income.
• The account is supported by Government contributions.  The Government
  will contribute an extra 17 per cent on the first $5,000 of personal
  contributions made into the account each year.  This will be indexed to
  average weekly ordinary time earnings.  This means that an individual
  contributing $5,000 will receive a Government contribution of $850.
• There is an overall account balance cap of $75,000, which is indexed to
  average weekly ordinary time earnings.  Earnings can still accrue once
  the cap is reached.
• In addition, earnings on account
  balances are taxed at the account provider level at the statutory rate
  of 15 per cent, rather than in the hands of the individual account
  holder at their marginal tax rate.
• As a general rule, in
  order to access money to purchase a first home, personal contributions
  of at least $1,000 must have been made in each of at least four
  financial years.
• Individual contributions are not taxed as
  they are made from after-tax income; Government contributions are not
  taxed and withdrawals to purchase a first home are not taxed.

From 1 October 2008, accounts can be offered by banks, building
societies and credit unions, public offer superannuation providers,
life insurance companies, and friendly societies.

The  Bill also provides a framework to prudentially regulate public offer superannuation  providers. 

Providers that are banks, building societies and credit unions; and
life insurance companies will continue to be prudentially regulated
under the Banking Act 1959 and Life Insurance Act 1995 respectively.