The Tax and Superannuation Laws Amendment (2015 Measures No.1) Bill 2015 has been passed. The Act abolishes First Home Saver Accounts from 1 July 2015.

First Home Saver Account (FHSA) deposit accounts are an account issued by an authorised deposit-taking institution (ADI), such as a bank, building society or credit union as well as life companies and RSE Licensees. The features of FHSA deposit accounts are similar to basic deposit products but have restrictions on withdrawal and particular consequences when the accounts are closed because of the concessional tax treatment.

Under the amendment contained in the Tax and Superannuation Laws Amendment (2015 Measures No.1) Act 2015, accounts that are currently FHSAs will cease to be FHSAs and will no longer be eligible for concessional tax treatment or government co-contributions.

Since the 2014 Budget, accounts opened after 13 May 2014 were not eligible to be FHSAs.