First Home Saver Accounts are now savings accounts

First Home Saver Accounts were officially abolished last week by parliament. The repeal of the First Home Saver Account Scheme applies from 1 July 2015.

Savings accounts that are currently First Home Saver Accounts will cease to be FHSAs and will no longer get concessional tax treatment or government co-contributions.

According to the Australian Prudential Regulation Authority, there were 47,400 FHSAs open in September 2014 with total balances of $606.6 million.

Source: Banking Day