The Australian government is abolishing the first home saver account scheme, citing lower than forecast take-up rates. New accounts opened from Budget night will not be eligible for concessions. Government co-contributions will cease from July 1, and tax concessions and asset and income test exemptions for government benefits associated with these accounts will cease from July 1, 2015. The saving to the Budget is estimated to be A$113.3 million.First home saver accounts were introduced in 2008. Under the scheme, first-home buyers qualified for concessional tax treatment and government contributions if they contributed to their FHSA over four financial years. The accounts attracted a 17 per cent government contribution on the first $5,500 deposited in any year. Withdrawals were tax free if they were used to purchase or build a first home.Only 46,000 of the accounts were ever opened, with a total balance of $521.5 million.In other Budget measures that will have a direct impact on the financial services industry, the government will defer the start date of reforms to the offshore banking unit regime to income years on or after July1, 2015, with an estimated cost to revenue of $180 million. The OBU regime was put in place in 1986. The government introduced tax concessions to encourage offshore financial transactions between non-residents to be conducted through Australian institutions.In last year's Budget, the government said it would make dealings between OBUs and related parties, including transactions between an OBU and a related domestic bank, ineligible for OBU treatment. Last September, the new government said it would amend last year's Budget measures. The latest announcement is probably a reflection of the fact that the amendments have not yet been formulated.In another measure, the government will amend the unclaimed moneys scheme of the Banking Act to protect farm management deposits from being transferred to the Commonwealth.