The First Home Super Saver (FHSS) Scheme lets you save for your first home using your superannuation fund. By making voluntary contributions to super, you benefit from the concessional 15% tax rate (instead of your marginal tax rate), helping you build a deposit faster. You can then withdraw those contributions (plus earnings) to put towards your first home.
How the FHSS Scheme Works
- Make voluntary contributions to your super fund — either pre-tax (salary sacrifice) or after-tax (personal contributions you intend to claim a tax deduction for)
- Your contributions are taxed at 15% instead of your marginal rate (saving you thousands)
- Apply for a FHSS determination through your MyGov account linked to the ATO
- Request a release of up to the eligible amount
- Withdraw the funds to use as part of your home deposit
Key Numbers (2025–26)
| Limit | Amount |
|---|---|
| Maximum contributions you can withdraw | $50,000 per person |
| Maximum per financial year | $15,000 |
| Maximum total withdrawn (including deemed earnings) | Varies — contributions + earnings capped at the total contributions limit |
| Minimum amount to withdraw | No minimum |
| Timeframe to sign a contract | 12 months after release |
Tax Benefits Example
Let's say you're on a marginal tax rate of 34.5% (including Medicare levy) and you salary sacrifice $10,000 into super:
| Saving outside super | Saving via FHSS (super) | |
|---|---|---|
| Gross amount | $10,000 | $10,000 |
| Tax paid | $3,450 (at marginal rate) | $1,500 (at 15%) |
| Net saved | $6,550 | $8,500 |
| Extra you save via FHSS | — | $1,950 |
Over multiple years, this could save you $10,000+ compared to saving in a regular savings account.
Eligibility
- You must never have owned a home in Australia (or the home you intend to buy is in Australia)
- You must not have previously used the FHSS scheme
- You must be at least 18 years old
- You must intend to live in the property for at least 6 months in the first 12 months
- You can apply as a couple — both partners can use their own FHSS amounts
Step-by-Step Process
- Step 1: Log into MyGov and link your ATO account
- Step 2: Make voluntary contributions to your super (salary sacrifice via your employer, or personal contributions)
- Step 3: Apply for a FHSS determination to find out how much you can withdraw
- Step 4: Request a release from your super fund (the ATO handles this)
- Step 5: Receive the funds into your bank account (typically within 5–10 business days)
- Step 6: Sign a contract to purchase your home within 12 months
- Step 7: Notify the ATO once you've purchased
Key Considerations
- The released amount includes your contributions plus associated earnings (calculated using a deemed rate set by the ATO)
- Withdrawn amounts are taxed at your marginal rate minus a 30% tax offset — so most people pay little to no extra tax
- If you don't buy a home within 12 months, you can re-contribute the amount to super (without using your cap) or pay additional tax
- You can use FHSS in combination with the First Home Guarantee and state-based FHOG
Related Guides
- How to save a deposit faster
- First Home Guarantee — low deposit buying
- First Home Owner Grant by state
- Home loan guide — fixed vs variable
This is general information only. Consider seeking financial advice tailored to your personal circumstances before using the FHSS scheme.
How the Tax Saving Works — Example
The FHSS scheme's value comes from the gap between the 15% tax on super contributions and your marginal rate. Suppose you earn $85,000 and salary sacrifice $15,000 in a year. Outside super, that $15,000 would be taxed at 30% plus 2% Medicare levy — about $4,800. Inside super it is taxed at 15% — $2,250 — and when you withdraw, eligible concessional contributions are released with a 30% tax offset, effectively reversing the contributions tax. Between the annual saving and the earnings your money makes inside super, the scheme is worth around $1,500–$2,000 a year for most contributors.
Couples can double the benefit: eligibility is assessed per person, so two buyers can each withdraw their own $50,000 of contributions plus earnings toward the same property. Even friends or siblings buying together can each use their own FHSS savings.
Action Plan: FHSSS Timeline for 2026
- Check you qualify: 18+, never owned property in Australia (hardship exceptions apply), and you intend to live in the home.
- Contribute up to $15,000 per financial year via salary sacrifice or personal contributions — employer super guarantee doesn't count.
- Request your FHSS determination through myGov before you sign a contract — this fixes your maximum release amount.
- Request the release, then buy or build within 12 months (extendable to 24 months).
- If plans fall through, re-contribute the amount to super — it won't count against your non-concessional cap.