First Home Super Saver Scheme (FHSS)
Use Your Super to Save for a Home Deposit
The First Home Super Saver Scheme (FHSS) lets you make voluntary contributions to your superannuation and later withdraw them, plus deemed earnings, to put towards your first home deposit. Because super contributions are taxed at just 15% (compared to your marginal tax rate), you effectively save faster.
For someone on an average income, the FHSS can help you save up to 30% faster than a regular savings account.
How the First Home Super Saver Scheme Works: Simply Explained
Here’s the basic idea:
- You make extra voluntary contributions to your super fund (on top of your employer’s contributions)
- These contributions are taxed at 15% inside super (instead of your marginal rate, which could be 30–45%)
- When you’re ready to buy, you apply to the ATO to release your voluntary contributions plus deemed earnings
- The money is paid to you to use as your home deposit
The Tax Advantage
Let’s say you earn $80,000/year. Your marginal tax rate is 32.5% (plus Medicare levy). If you salary sacrifice $10,000 into super:
- Without FHSS: You’d pay ~$3,450 in tax, keeping $6,550
- With FHSS: Your super fund pays 15% tax ($1,500), and you keep $8,500 in super
That’s roughly $1,950 more per year just from the tax difference. Over 2–3 years of contributions, that adds up significantly.
How Much Can You Contribute?
The FHSS has specific limits:
- Maximum voluntary contributions: $15,000 per financial year
- Total maximum across all years: $50,000
- Contributions can be salary sacrifice (pre-tax) or personal voluntary contributions (after-tax, which you claim a deduction for)
Important: Your total concessional (pre-tax) contributions, including employer contributions, cannot exceed the concessional contributions cap ($30,000/year as of 2025-26).
Step-by-Step: How to Use the First Home Super Saver Scheme
Step 1: Start Making Voluntary Contributions
Talk to your employer about salary sacrificing into super. Alternatively, make personal contributions directly to your super fund and claim a tax deduction at tax time.
Step 2: Keep Track of Your FHSS-Eligible Contributions
Not all super contributions count for the FHSS. Only voluntary contributions made after 1 July 2017 are eligible. Your regular employer contributions (Super Guarantee) don’t count.
You can check your FHSS balance through myGov linked to the ATO.
Step 3: Apply for a Determination
When you’re ready to buy, apply to the ATO for an FHSS determination. This tells you exactly how much you can withdraw. You can request this before or after finding a property.
Step 4: Request a Release
Once you have a contract to purchase (or are ready to buy), submit an FHSS release request to the ATO. The ATO will then instruct your super fund to release the funds.
Step 5: Receive Your Funds
The money is paid to you (minus applicable withholding tax). It typically takes 15–25 business days from the release request. Plan ahead…this isn’t instant.
Step 6: Buy Your Home
You must sign a contract to purchase or build your home within 12 months of the release (extensions may be available). You must intend to live in the property for at least 6 of the first 12 months.
Who Is Eligible for the First Home Super Saver Scheme?
- You must be 18 or older to request a release
- You must never have owned property in Australia (including investment property)
- You must not have previously made an FHSS release request
- You must intend to live in the property as soon as practicable
Couples: Both partners can each use the FHSS independently, potentially doubling the deposit boost. If you’ve each contributed $50,000 over time, that’s up to $100,000 (minus tax) available for your deposit.
First Home Super Saver Scheme + Other Schemes = Maximum Savings
The FHSS works alongside every other first home buyer scheme:
Scheme | Benefit |
|---|---|
FHSS | Grow your deposit faster through super |
FHOG (QLD) | +$30,000 at settlement |
FHOG (VIC) | +$10,000 at settlement |
First Home Guarantee | Buy with 5% deposit, no LMI |
Stamp duty concessions | Reduce/eliminate transfer duty |
Common First Home Super Saver Scheme Mistakes to Avoid
1. Not Starting Early Enough
The FHSS works best over 2–3+ years. If you’re even vaguely thinking about buying a home in the next few years, start contributing now.
2. Not Accounting for the Withdrawal Timeline
It takes 15–25 business days to receive your FHSS funds. If you’re in a hurry to sign a contract, this delay can be stressful. Apply for your determination early.
3. Exceeding the Concessional Cap
If your salary sacrifice plus employer contributions exceed the concessional contributions cap, you’ll face excess contributions tax. Get advice from an accountant or financial adviser.
4. Forgetting to Claim Tax Deductions
If you make personal (after-tax) voluntary contributions, you must submit a Notice of Intent to Claim a Deduction to your super fund before lodging your tax return or requesting an FHSS release. Miss this step and you lose the tax benefit.
1. Not Starting Early Enough
The FHSS works best over 2–3+ years. If you’re even vaguely thinking about buying a home in the next few years, start contributing now.
2. Not Accounting for the Withdrawal Timeline
It takes 15–25 business days to receive your FHSS funds. If you’re in a hurry to sign a contract, this delay can be stressful. Apply for your determination early.
3. Exceeding the Concessional Cap
If your salary sacrifice plus employer contributions exceed the concessional contributions cap, you’ll face excess contributions tax. Get advice from an accountant or financial adviser.
4. Forgetting to Claim Tax Deductions
If you make personal (after-tax) voluntary contributions, you must submit a Notice of Intent to Claim a Deduction to your super fund before lodging your tax return or requesting an FHSS release. Miss this step and you lose the tax benefit.
Is the First Home Super Saver Scheme Worth It?
For most first home buyers, yes, absolutely. Here’s a realistic scenario:
- Sarah, 28, earns $75,000/year
- Salary sacrifices $15,000/year into super for the FHSS
- After 3 years: $38,250 in voluntary contributions (after 15% contributions tax) + deemed earnings
- Tax saved compared to regular savings: ~$4,500–$5,000 (after accounting for withdrawal tax)
- Combined with FHOG ($30,000 in QLD) and NHG (no LMI): Sarah buys a $500,000 new home with minimal out-of-pocket costs
How Low Deposit Homes Helps!
While we’re not financial advisers, we work alongside brokers and advisers who can help you set up and optimise your FHSS strategy. We then help you find the right new-build home to buy when you’re ready.
Thinking about buying in the next 1–3 years? Book a free 15-minute consultation, we’ll help you understand your timeline and options.
Frequently Asked Questions
Can I use the FHSS and the First Home Owner Grant together?
Yes! The FHSS helps you build your deposit, while the FHOG is a separate grant paid at settlement. They complement each other perfectly.
What happens to my FHSS contributions if I don’t end up buying?
Your voluntary contributions simply remain in your super fund and continue to grow for your retirement. You don’t lose anything, you just can’t withdraw them until retirement (standard super rules apply).
Can I use the FHSS for an investment property?
No. The FHSS requires you to live in the property. It must be your principal place of residence.
How long does it take to get the FHSS money out of super?
Plan for 15–25 business days from the date you submit your release request. This is the ATO processing time plus your super fund’s release time.
Does the FHSS affect my employer’s super contributions?
No. Your employer’s Super Guarantee contributions continue as normal. The FHSS only relates to your voluntary contributions (salary sacrifice or personal contributions you claim a deduction for).
FHSS contribution limits and withdrawal rules are set by the ATO. Verify current limits on the ATO website before making contributions.