First Home Super Saver (FHSS) Scheme

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What Is the FHSS Scheme?

The First Home Super Saver (FHSS) scheme allows you to make voluntary super contributions (up to certain limits) and then withdraw them (plus associated earnings) to help buy your first home. The key benefit is tax savings — contributions are taxed at 15% inside super instead of your marginal rate, while still being accessible for a home purchase.

Key Limits (2025-26)

• Maximum withdrawable amount: $50,000 per person
• Maximum voluntary contributions per year: $15,000 (counts toward your annual caps)
• Total voluntary contributions eligible: Up to $50,000 worth (across all years)
• Couples: Both partners can use the scheme, effectively doubling the benefit to $100,000

How It Works

1. Make voluntary contributions — either concessional (salary sacrifice or personal deductible) or non-concessional (after-tax)
2. Apply for release — through your myGov account linked to the ATO
3. ATO calculates the amount — contributions + associated earnings (minus 15% tax on concessional amounts)
4. Money is released — from your super fund to you, typically within 10–20 business days
5. Buy your home — you have 12 months to sign a contract from the date of release (or request an extension)

Tax Benefits

The FHSS scheme provides two tax advantages:

• Concessional contributions: Taxed at 15% inside super vs up to 47% marginal rate — saving up to 32%
• Earnings: Investment earnings on contributions grow at the super fund's rate of return, taxed at just 15%
• Withdrawal tax: When you withdraw, the concessional component is taxed at your marginal rate minus a 30% offset — so most people pay little to no extra tax

Eligibility

• You must be 18 or older
• You must never have owned property in Australia (including investment property, vacant land, commercial property, or leasehold of more than 50 years)
• You must intend to live in the home for at least 6 of the first 12 months
• A first-home buyer who has previously owned property outside Australia may be eligible
• You cannot have previously made an FHSS release request

Example Scenario

Sarah earns $80,000 and wants to buy her first home in 3 years. She salary sacrifices $15,000 per year into super:

• Year 1: Contribute $15,000 (tax saved: ~$4,800 vs marginal rate)
• Year 2: Contribute $15,000
• Year 3: Contribute $15,000
• Total contributed: $45,000 (within $50k cap)
• Estimated withdrawable amount after earnings and tax: ~$48,000–$52,000
• Combined with partner: potentially $100,000 for a deposit

Things to Watch Out For

• You cannot withdraw mandatory employer SG contributions — only voluntary contributions
• If you contribute via salary sacrifice, the contributions also count toward your $30k concessional cap
• You need to apply through the ATO (myGov) — not directly through your super fund
• If you don't buy a home within 12 months, you can recontribute the amounts (subject to caps)

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How the Release Process Works

Using the FHSS scheme is a four-step process, and the order matters. First, you make voluntary contributions — salary sacrifice or personal contributions, up to $15,000 per financial year and $50,000 total since 1 July 2017 (employer SG does not count). Second, once you are ready to buy, you apply to the ATO through myGov for an FHSS determination, which tells you your maximum release amount — you must do this before you sign a contract. Third, you request the release and the ATO arranges for your fund to pay the amount to you. Fourth, you buy or build a home within 12 months (extendable to 24 months) and move in within 12 months of it being ready.

On release, eligible non-concessional contributions come out tax-free, while concessional contributions are taxed at your marginal rate minus a 30% offset — which effectively refunds most of the 15% contributions tax paid. Both members of a couple can use their own $50,000 limits on the same property, so a couple can withdraw up to $100,000 of contributions plus earnings.

Action Plan: Using FHSSS in 2026

1. Check eligibility: 18 or older, never owned property in Australia (hardship exceptions apply), and intend to live in the home.
2. Contribute the maximum $15,000 per financial year — salary sacrifice gives you the extra tax saving; personal after-tax contributions are simpler to release.
3. Log into myGov and request your FHSS determination before you make an offer on a property.
4. Time the release so funds arrive around settlement — the money must be used for the purchase.
5. If you don't end up buying, re-contribute the released amount to super; it won't count against your non-concessional cap.