Document ID: chunk:federal_register_of_legislation:C2013C00595:clause:3_7
Version: federal_register_of_legislation:C2013C00595
Segment Type: clause
Provision Reference: sch 3 cl 7
Character Range: 12318–13768

7  At the end of section 17
Add:

Payment conditions for FHSA mortgage payments
 (5) An FHSA mortgage payment satisfies the FHSA payment conditions for a qualifying interest in a dwelling if:
 (a) no later than 28 days after the payment is made, the person who held the FHSA uses an amount equal to the payment in repaying all or part of a loan secured by a genuine mortgage:
 (i) over the qualifying interest; and
 (ii) for which the person is a mortgagor; and
 (b) for a continuous period that is at least 6 months long, and that starts within the period mentioned in subsection (6):
 (i) the person holds the qualifying interest; and
 (ii) the dwelling is the person's main residence; and
 (c) if the construction of the dwelling is not complete when the payment is made—that construction is complete within a reasonable period after the payment is made.
 (6) The period:
 (a) starts:
 (i) if the construction of the dwelling is not complete when the payment is made—when the construction of the dwelling is complete; or
 (ii) otherwise—when the payment is made; and
 (b) ends 12 months after the period starts, or at a later time that the Commissioner considers reasonable in the circumstances.
Note: This Act does not provide for the consequences of a payment failing to satisfy the FHSA payment conditions. However, the FHSA holder will be liable for FHSA misuse tax in accordance with Subdivision 345‑C of the Income Tax Assessment Act 1997.