Document ID: chunk:federal_register_of_legislation:C2010C00222:clause:1_31:p1
Version: federal_register_of_legislation:C2010C00222
Segment Type: clause
Provision Reference: sch 1 cl 31 (pt 1/2)
Character Range: 8352–11128

31  After Division 328
Insert:

Division 345—FHSAs

Table of Subdivisions

 Guide to Division 345
345‑A Treatment of FHSA providers
345‑B Treatment of FHSA holders
345‑C FHSA misuse tax

Guide to Division 345

345‑1  What this Division is about

      FHSAs (short for first home saver accounts) are accounts, life policies and interests in trusts that comply with requirements in the First Home Saver Accounts Act 2008.
      This Division sets out the income tax treatment of the financial institutions that provide FHSAs (Subdivision 345‑A) and of individuals that hold FHSAs (Subdivision 345‑B).
      Certain payments from FHSAs are subject to FHSA misuse tax (Subdivision 345‑C).

Subdivision 345‑A—Treatment of FHSA providers

Table of sections

345‑5 FHSA provider that is trustee of FHSA trust—tax payable
345‑10 FHSA provider that is trustee of FHSA trust—CGT to be primary code for calculating gains or losses
345‑15 FHSA provider that is an ADI (other than RSA provider)—taxable income and standard component of taxable income
345‑20 FHSA provider that is an ADI—FHSA component of taxable income

345‑5  FHSA provider that is trustee of FHSA trust—tax payable

 (1) The trustee of an *FHSA trust is liable to pay income tax for the *financial year on the taxable income of the trust.

 (2) The amount of the tax is the amount of income tax that would be payable by the trust under section 4‑10 if the trust were an *Australian resident liable (in accordance with section 4‑1) to pay income tax for the *financial year.

 (3) For the purposes of subsection (2):
 (a) apply the special rules in this Subdivision in working out the taxable income of the trust; and
 (b) apply the applicable rate of tax specified in section 30 of the Income Tax Rates Act 1986 to the taxable income of the trust.

345‑10  FHSA provider that is trustee of FHSA trust—CGT to be primary code for calculating gains or losses

 (1) The modifications in subsection (2) apply if a *CGT event happens involving a *CGT asset that was owned by an *FHSA trust.

 (2) These provisions do not apply to the *CGT event:
 (a) sections 6‑5 (about *ordinary income);
 (b) section 8‑1 (about amounts you can deduct);
 (c) sections 15‑15 and 25‑40 (about profit‑making undertakings or plans).

Exceptions

 (3) The provisions referred to in subsection (2) can apply to the *CGT event if:
 (a) any *capital gain or *capital loss from the event is attributable to currency exchange rate fluctuations; or
 (b) the *CGT asset is one of the following:
 (i) debenture stock, a bond, *debenture, certificate of entitlement, bill of exchange, promissory note or other security;
 (ii) a deposit with a bank, building society or other financial institution;
 (iii) a loan (secured or not);
 (iv) some other