First Home
Super Saver.
The FHSS Scheme lets eligible first-home buyers save for a deposit inside their superannuation — where contributions are taxed at just 15% instead of your full marginal rate. Withdraw up to $50,000 plus earnings when you are ready to buy.
How the FHSS Scheme Works
Instead of saving in a regular bank account where earnings are taxed at your full marginal rate, you save inside super — where the tax advantages compound over time.
What Can You Withdraw?
Personal voluntary contributions made from after-tax income that you did not claim as a tax deduction.
Pre-tax contributions arranged with your employer (concessional). Taxed at 15% on entry — only 85% counts toward your release amount.
Personal contributions you claimed as a tax deduction (concessional). Same treatment as salary sacrifice — 85% counts.
Plus associated earnings: In addition to your contributions, you also receive a calculated amount of associated earnings determined by the ATO. These deemed earnings may differ from actual earnings in your super fund.
Eligibility
Eligibility is assessed on an individual basis. There's no citizenship requirement — but you must be a genuine first-home buyer intending to live in the property.
You Must
- ✓Be 18 years or older when requesting an FHSS determination
- ✓Have never owned property in Australia — including investment property, vacant land, commercial property, lease of land, or company title interest
- ✓Have your name on the title of the property you buy
- ✓Not have previously completed an FHSS release request
- ✓Intend to live in the property as your primary residence
- ✓Have made eligible voluntary contributions to your super fund
Eligible Property Types
- ✓ Existing residential home
- ✓ Newly built home
- ✓ House and land package
- ✓ Vacant land with a contract in place to build
⚠ Ineligible Properties
Occupancy Requirement
You must genuinely intend to live in the property as your primary residence as soon as practicable after purchase, and live there for at least 6 months within the first 12 months after it becomes practical to move in.
Previously Owned Property?
You may still qualify under the FHSS Financial Hardship provision. The ATO may grant eligibility if you experienced hardship that caused you to lose ownership of all your property.
Qualifying hardship situations include:
Making Contributions
You can contribute via two main methods. Both count toward your FHSS limits, and you don't need to notify anyone before starting.
Arrange with your employer to redirect part of your pre-tax salary into super. Taxed at 15% on entry into the fund.
- →Talk to your employer about whether this is available
- →Ask how often contributions are deposited into your fund
- →Contributions count on the date deposited — not the payslip date
- →85% of these contributions count toward your FHSS release amount
Make after-tax contributions directly into your super fund. If you claim a tax deduction, they become concessional. If not, they're non-concessional.
- →Contact your super fund to find out how to contribute
- →Or ask your employer to deduct from your after-tax pay
- →Non-concessional: 100% counts toward your FHSS release
- →Concessional (with tax deduction): 85% counts toward release
Maximum eligible contributions that count per year. Excess contributions above this limit cannot be withdrawn under FHSS.
Lifetime maximum for eligible contributions that can be counted toward your maximum release amount.
Earlier contributions are counted first. Within the same year, non-concessional contributions are treated as made first to maximise your release amount.
Ineligible Contributions
Tax Implications
The FHSS scheme's biggest advantage is tax. Contributions go in at 15%, come out with a 30% offset — here's how it all works.
Tax on Contributions
Tax on Withdrawal
Your marginal rate (including Medicare levy) minus the 30% tax offset — or 17% if your marginal rate can not be estimated.
39% marginal rate − 30% offset = ~9% effective tax on withdrawal
Tax reporting: Include the assessable FHSS released amount and tax withheld in your tax return for the year the release was requested — not when funds are received.
Example: Annual Limit in Action
In the 2023–24 financial year, Mary made $25,000 in salary sacrifice contributions. Because of the annual $15,000 limit, only $15,000 counts as eligible FHSS contributions. At 85%, that means only $12,750 counts toward her maximum releasable amount. The remaining $10,000 cannot be counted toward her FHSS release.
How to Access Your FHSS Savings
Access is managed through your myGov account linked to the ATO. The process has four steps — and the order matters.
If you don't buy within 12 months
You can recontribute to super as non-concessional (no tax deduction), or keep the funds and pay 20% FHSS tax on the assessable amount. Extensions of up to 24 months may apply.
Before submitting a release
You can request a new determination or amend your existing one online, provided you meet eligibility requirements and haven't signed a contract yet.
After processing begins
Changes cannot be made without potentially delaying payment. If errors are found, contact the ATO as soon as possible to minimise delays.
Combining FHSS with Other Schemes
FHSS operates separately from state and federal concessions. Using it does not disqualify you from other first-home buyer programs.
Can be combined with
- ✓First Home Guarantee (5% deposit, no LMI)
- ✓Family Home Guarantee (2% deposit for single parents)
- ✓First Home Owner Grant (state-based cash grant)
- ✓Stamp duty concessions or exemptions
- ✓Other state-based housing programs
HELP / HECS Debt
FHSS withdrawals do <strong style={{ color: "#000000" }}>not</strong> count as repayment income — they won't increase your HELP/HECS repayment. However, salary sacrifice contributions count as reportable employer super contributions, which may affect your PAYG withholding obligations.
Outstanding Government Debts
If you have an outstanding debt with the ATO or another Commonwealth agency, your FHSS release may be offset against the debt, reduced (potentially to zero), or take longer to be processed.
Joint Purchases
Couples, siblings, or friends can each withdraw their own FHSS contributions toward the same property. If one person is ineligible due to prior ownership, the other eligible applicants are unaffected.
Frequently Asked Questions
Everything you need to know about the First Home Super Saver Scheme.