By Chaice Paterson, CEO & Founder, Low Deposit Homes | Updated June 2026

The First Home Super Saver Scheme (FHSSS) is one of the most underused first home buyer programs in Australia. Under the Federal scheme administered by the ATO, eligible first home buyers can withdraw up to $50,000 individual (or $100,000 per couple) of voluntary super contributions plus associated earnings to use toward a home deposit — with significant tax benefits compared to saving the same amount in a standard bank account. Most first home buyers don’t realise the scheme exists, or assume it’s too complicated to use. At Low Deposit Homes we’ve structured FHSSS withdrawals into first home buyer deposits ranging from $1,960 to $40,000+ — for many clients, FHSSS is the difference between meeting the genuine savings requirement and being declined finance.

What Is the First Home Super Saver Scheme?

The First Home Super Saver Scheme allows you to make voluntary contributions into your superannuation fund, then withdraw those contributions (plus deemed earnings) to use as a deposit on your first home. Because super has favourable tax treatment, saving inside super can be more efficient than saving in a standard bank account.

For the official source, see the ATO First Home Super Saver Scheme page.

The key mechanics:

• Voluntary contributions only. You cannot withdraw your employer’s compulsory Super Guarantee contributions. Only voluntary contributions (salary sacrifice or personal after-tax) made from 1 July 2017 onwards qualify.
• Lifetime cap of $50,000 per person. This was increased from $30,000 on 1 July 2022.
• Annual cap of $15,000 per financial year in eligible voluntary contributions.
• Plus deemed earnings. The ATO calculates associated earnings using the 90-day bank bill rate plus 3%.

A couple where both partners use the scheme can combine to withdraw up to $100,000 for the same property.

How Much Can I Actually Withdraw Under FHSSS?

This depends on the type of contributions you’ve made. Two categories:

Concessional contributions (before-tax): Salary sacrifice contributions or personal contributions you’ve claimed a tax deduction for. You can withdraw 85% of these. The reduction reflects the 15% contributions tax already paid in your super fund.

Non-concessional contributions (after-tax): Personal contributions from your take-home pay where you didn’t claim a tax deduction. You can withdraw 100% of these.

A worked example for a single buyer over 3 years:

Plus deemed earnings (typically $1,500–$3,000 on this contribution pattern), the total withdrawal would be roughly $33,000–$34,000. That’s a meaningful boost to a first home buyer deposit.

“FHSSS doesn’t get the attention it deserves. We had a client last month who unlocked $1,960 from voluntary contributions she’d made years ago and forgotten about — small in absolute terms, but it tipped her across the genuine savings line with her lender. For couples making strategic voluntary contributions for 2–3 years before buying, FHSSS can mean $60K–$80K toward the deposit.” — Chaice Paterson, founder of Low Deposit Homes

What Are the Tax Benefits?

This is where FHSSS becomes powerful. Three layers of tax advantage:

1. Concessional contributions are taxed at 15% inside super. Compare this to your marginal tax rate (typically 32.5%–45% for most first home buyers). For someone on the 32.5% marginal rate, salary sacrificing $10,000 saves approximately $1,750 in tax versus taking the same amount as salary.
2. 30% tax offset on withdrawal. When you withdraw FHSSS amounts, the ATO applies a 30% tax offset to the assessable withdrawal. This significantly reduces the tax you’d otherwise pay.
3. Net tax position vs saving outside super. For a typical first home buyer earning $90,000, salary sacrificing $10,000 into super under FHSSS ends up with approximately $8,330 toward the home deposit. Saving the same $10,000 as after-tax salary in a bank account ends up with approximately $6,800. Net advantage: roughly $1,530 per $10,000 saved through FHSSS.

The advantage scales with income. Higher earners benefit more from FHSSS because their marginal tax rate is further above the 15% super contributions tax rate.

Who Qualifies for FHSSS?

To qualify you must:

• Be 18 years or older
• Be a first home buyer — you must not have previously owned residential property in Australia (with limited exceptions for natural disaster victims and people who experienced financial hardship)
• Intend to live in the property as your principal place of residence
• Live in the property for at least 6 months within the first 12 months after it’s habitable
• Request an FHSS determination from the ATO BEFORE signing your purchase contract

The first home buyer test is per-person, not per-couple. If one partner has previously owned property, the other can still use FHSSS individually.

How Do I Request a Withdrawal?

The process has a specific sequence — getting this wrong can disqualify you from the scheme:

1. Sign into myGov (linked to your ATO account)
2. Apply for an FHSS determination. The ATO calculates your maximum withdrawal amount and confirms eligibility.
3. Submit a release request. You request release of an amount up to your determination.
4. ATO releases funds. Money is paid to you (with applicable tax withheld).
5. Sign your purchase contract within 12 months of receiving the funds (extension to 24 months available if you applied for an extension).
6. Notify the ATO that you’ve signed a contract or built a home, within 28 days.

The critical timing rule: you must request the FHSS determination BEFORE signing your purchase contract. If you sign the contract first, you lose eligibility for FHSSS on that purchase.

Common FHSSS Mistakes

Across hundreds of client interactions, these mistakes recur:

• Signing the contract before requesting determination. This permanently disqualifies you from FHSSS for that property.
• Trying to withdraw employer SG contributions. Only voluntary contributions qualify. Your employer’s mandatory Super Guarantee (currently 12%) is not eligible.
• Hitting the $50K lifetime cap without realising. Track your cumulative voluntary contributions across all years.
• Missing the 24-month contract deadline. Once funds are released, the clock starts. Extensions are available but require an application.
• Not coordinating with finance pre-approval. Lenders want to see the FHSSS funds in your account as genuine savings. Timing matters.

Can I Use FHSSS With the 5% Deposit Scheme or Help to Buy?

Yes — FHSSS stacks with both. The FHSSS-withdrawn amount counts as part of your deposit savings, supplementing whatever you’ve saved in a standard bank account.

A typical Low Deposit Homes client structure:

• Cash savings: $30,000 in bank account
• FHSSS withdrawal: $20,000 from voluntary super contributions
• Combined deposit: $50,000 (5% of a $1M property)
• Plus: 5% Deposit Scheme guarantee eliminates LMI

Without FHSSS, this client would have needed an additional $20K cash saved over 1–2 years before being ready to purchase. FHSSS accelerated the timeline.

KiwiSaver Transfers — A Note for New Zealand Buyers

If you’ve transferred funds from a New Zealand KiwiSaver scheme into your Australian super fund, those amounts can be used in your FHSSS withdrawal as a single personal voluntary (after-tax) contribution. The transfer typically takes around 21 days through a participating Australian super fund.

For New Zealand buyers who’ve recently moved to Australia, this is an underused way to convert KiwiSaver savings into Australian first home buyer deposit funds. We help LDH clients with KiwiSaver balances structure this transfer correctly — speak to us on the discovery call for specifics.

Frequently Asked Questions

How much can I withdraw from super for my first home in 2026?

The maximum FHSSS withdrawal is $50,000 per individual (lifetime cap), or $100,000 combined for a couple where both partners are eligible. The annual cap is $15,000 per financial year in eligible voluntary contributions. You can withdraw 100% of after-tax personal contributions and 85% of before-tax (salary sacrifice or tax-deductible) contributions, plus associated deemed earnings.

Can I withdraw my employer’s super contributions for my first home?

No. The First Home Super Saver Scheme only applies to voluntary contributions you’ve made yourself — either salary sacrifice (concessional) or after-tax personal contributions (non-concessional). Your employer’s compulsory Super Guarantee contributions cannot be withdrawn under FHSSS.

Do I need to be a first home buyer to use FHSSS?

Yes. The scheme is specifically for first home buyers — you must not have previously owned residential property in Australia. Limited exceptions exist for natural disaster victims and people who lost ownership due to specific financial hardship circumstances. The test is per-person, so if one partner has previously owned property, the other can still use FHSSS individually.

What if I’ve contributed to KiwiSaver in New Zealand?

You can transfer your KiwiSaver balance into an Australian super fund (typically taking around 21 days), and that transferred amount can then be used in an FHSSS withdrawal as a single after-tax voluntary contribution. For New Zealand buyers who’ve moved to Australia, this is a meaningful way to use KiwiSaver savings toward an Australian first home deposit.

Can I combine FHSSS with the 5% Deposit Scheme or Help to Buy?

Yes. FHSSS stacks with all the major first home buyer schemes — 5% Deposit Scheme, Help to Buy, Boost to Buy (QLD), Family Home Guarantee. The FHSSS withdrawal counts toward your deposit savings, supplementing whatever cash you’ve saved separately. We commonly structure deposits as a combination of cash savings + FHSSS withdrawal + 5% Deposit Scheme guarantee.

Ready to Find Out How Much You Can Withdraw From Super?

Book a free 15-minute consultation with Low Deposit Homes — Book your free call | Call 1800 920 172

We’ve helped 1000+ families structure FHSSS withdrawals into first home buyer deposits. The consultation is free, and we’ll confirm in 15 minutes how much you can withdraw and how it fits into your overall deposit structure.

Low Deposit Homes operates under Winning Homes Australia Pty Ltd (ACN 633 321 758). All deposit calculations are indicative and based on general scenarios. Individual circumstances may vary. Government grant eligibility is subject to assessment by the relevant authority. This guide is for informational purposes and does not constitute financial advice.