The release this week of Australian Prudential Regulation Authority draft prudential standards for super funds that plan to offer first home saver accounts has confirmed the view of many fund trustees that the FHSA structure and regulatory framework are too cumbersome and costly for them.The Australian government's First Home Saver Accounts Bill, introduced into Parliament on May 28, allows for accounts to be offered by APRA regulated approved deposit-taking institutions, life companies and public offer superannuation funds (referred to as RSE licensees). First Home Saver Accounts, to be introduced after October 1, will provide a 17 per cent government contribution on the first $5000 of savings each year. The tax rate on earnings will be 15 per cent and will be paid by the provider. Withdrawals will be tax free if the money goes to the purchase or construction of a first home.The treatment of life companies and ADIs is different from super funds. Life companies and ADIs will have to notify APRA of their intention to offer an FHSA but will not have to go through an application process.Super funds will have to establish a separate trust for the purpose of offering an FHSA and will need approval.APRA issued an application form and a draft set of prudential standards that covers fit and proper person requirements, risk management procedures, resourcing standards, outsourcing rules and investment guidelines. Policy and research manager at the Australian Institute of Superannuation Trustees, Andrew Barr, said: "RSE licensees have to go through a different application process and set up separate trusts. But that is not all of it. There will be separate audits."And with FHSAs in a separate trust, licensees will have limited opportunities to utilise their portfolio of investment managers for the benefit of the account holder."AIST did a survey of not-for-profit super funds and found that only about a third planned to offer an FHSA. Most of those that are planning to offer an account will use a product supplied by a bank, such as Members Equity Bank.  AIST chief executive Fiona Reynolds said the survey result indicated that while fund trustees thought FHSAs were a good idea the structure established by the government made it too expensive for super funds to offer them.