The First Home Super Saver Scheme (FHSSS) lets eligible first home buyers save part of their deposit inside superannuation, where it benefits from concessional tax treatment rather than sitting in a standard savings account. If you’re planning to buy your first home, understanding how the scheme works could mean a faster deposit and a lower tax bill along the way.
How Much You Can Contribute and Withdraw
You can make voluntary contributions to your super and count up to $15,000 per financial year toward your FHSSS balance, with a $50,000 lifetime cap per person. Couples buying together can each use their own cap, giving combined access to up to $100,000.
There are two types of contributions you can use. Voluntary concessional contributions, such as salary sacrifice or personal contributions you’ve claimed as a tax deduction, are taxed at 15% in your super fund, with 85% of the amount available for release. Voluntary non-concessional contributions, made from after-tax money with no deduction claimed, are 100% available for release.
Employer Superannuation Guarantee contributions can’t be counted toward the FHSSS, only your own voluntary contributions qualify.
Are You Eligible?
To use the FHSSS, you generally need to be 18 years or older when you request a release, and to never have owned property in Australia, including an investment property, commercial property or land (some exceptions apply for financial hardship). You’ll also need to intend to live in the property you buy for at least 6 of the first 12 months you own it, once it’s practical to move in, and not have made a previous FHSSS release request.
How to Apply for a Release
Start by signing into myGov and requesting an FHSSS determination. The ATO will confirm your maximum release amount based on your super fund records. Once you’ve signed a contract or are ready to proceed, submit your release request to the ATO. The ATO then issues a release authority to your super fund, your fund sends the approved amount to the ATO, and the ATO pays the released amount to you, generally within a few weeks.
Tax on Your FHSSS Withdrawal
The amount you release is included in your assessable income for the year and taxed at your marginal rate, but you receive a 30% tax offset against that amount. You’ll receive a payment summary from the ATO detailing what to include in your tax return.
Frequently Asked Questions
Can I use the FHSSS more than once? No. You can only make one FHSSS release request in your lifetime, so it’s worth planning your contributions carefully before applying.
Can my partner and I both use the scheme for the same property? Yes. Eligibility is assessed individually, so you can each access your own $50,000 cap even if you’re buying together, and even if one of you has previously owned property, as long as the release is requested under the eligible person’s name only.
What happens if I don’t end up buying a home? You can either leave the funds in super or recontribute them as a personal contribution within 12 months (extendable), though tax consequences may apply if you choose to withdraw instead.
Does the FHSSS affect my other super contribution caps? Yes, FHSSS contributions still count toward your standard concessional and non-concessional contribution caps for the year, so it needs to be planned alongside your broader super strategy.
How Waterford Accountants Can Help
The FHSSS interacts with your income tax, your super contribution caps and your overall wealth creation strategy, so it’s worth getting advice before you start contributing rather than after. Our team can help you work out how much to contribute, when to apply for your determination, and how it fits alongside your broader retirement planning and superannuation goals.
For the full scheme rules, you can also refer to the ATO’s FHSSS guidance.
To find out how the First Home Super Saver Scheme could work for you, contact Waterford Accountants on 02 4940 2800 (Accountants) or 02 4961 5095 (Financial Services), or get in touch through our contact page.