The industry bodies are supportive of funds being able to offer these products, however according to ASFA the implementation and administration costs need to be kept under control for it to be viable. AIST says it believes the scheme needs to have caps on fees and charges, and be structurally separated or excluded from commission-based selling practices.

A number of superannuation funds that have spoken with Investment & Technology expressed interest in setting up a First Home Savers Account, but were unable to confirm any definite plans as the Government’s document had only just been released at the time of press. But one obvious positive the funds echo is the opportunity a First Home Saver Account would provide to develop relationships with its younger members. “We believe education and engaging members is important so that people become more active in managing their super,” ASFA’s Pragnell says.

“First Home Saver Accounts can help teach younger members how to save voluntarily and help them better understand concepts like risk and return.” Fiona Reynolds, chief executive at AIST, says that for the superannuation industry, there is a great deal of work that needs to be done to have the accounts up and running. “We look forward to working with APRA and the government to finalise the details making it possible for superannuation funds to offer the First Home Savers Accounts,” she says.