Who This Guide Is For
This guide is for first home buyers in Australia who want to use the First Home Super Saver Scheme (FHSSS) to save for a home deposit faster. The FHSSS lets you save money inside your superannuation fund, where it benefits from the concessional tax treatment of super — potentially saving you thousands compared to a regular bank savings account.
You're eligible to use the FHSSS if you:
- Are 18 years or older
- Have never owned property in Australia (including investment property, commercial property, or land)
- Intend to live in the property you buy for at least 6 out of the first 12 months
- Have not previously requested an FHSSS release
Whether you're just starting to save or already have a deposit built up, understanding how the FHSSS works can make a meaningful difference to how quickly you reach your deposit goal.
What Is the First Home Super Saver Scheme?
The FHSSS was introduced by the Australian Government in the 2017–18 Federal Budget. It allows first home buyers to make voluntary contributions into their superannuation fund, then withdraw those contributions (plus earnings) to use towards a home deposit.
The key advantage is tax: money contributed to super as a concessional contribution is taxed at 15% inside super, rather than at your marginal tax rate outside super. When you withdraw it, the released amount is taxed at your marginal rate minus a 30% tax offset. For most people, this means more money for your deposit.
The FHSSS is separate from the First Home Owner Grant (FHOG) and the First Home Guarantee — you may be able to use all three together.
FHSSS Contribution Rules
1. Annual Contribution Cap
You can contribute up to $15,000 per financial year in voluntary contributions that count towards your FHSSS release amount. This includes:
- Salary sacrifice contributions: Arranged through your employer, deducted from pre-tax income
- Personal deductible contributions: Made from after-tax money, with a notice of intent to claim a deduction lodged with your super fund
| Contribution Type | Tax Treatment in Super | Counts Towards FHSSS? |
|---|---|---|
| Salary sacrifice (concessional) | Taxed at 15% | ✅ Yes — up to $15,000/year |
| Personal deductible contribution | Taxed at 15% | ✅ Yes — up to $15,000/year |
| Non-concessional (after-tax, no deduction claimed) | Not taxed in super | ✅ Yes — up to $15,000/year |
| Employer SG contributions | Taxed at 15% | ❌ No — compulsory contributions don't count |
| Spouse contributions | Varies | ❌ No |
2. Total Cap Across All Years
The maximum you can release under the FHSSS across all financial years is $50,000 (for individuals). This is the total across all years you participate in the scheme, not per year.
3. Concessional Contribution Cap Interaction
Your FHSSS contributions count towards the standard concessional contributions cap of $30,000 per year (FY2025–26). If you salary sacrifice $15,000 towards FHSSS, your employer's SG contributions + any other concessional contributions can only add up to another $15,000 before you exceed the cap.
4. Carry-Forward Unused Concessional Cap
If your total super balance is under $500,000, you may be able to use unused concessional cap amounts from the previous 5 financial years. This only applies from 2019–20 onwards (the first year of the carry-forward rule).
How FHSSS Tax Treatment Works
This is where the real savings come from. Let's walk through a worked example.
Calculation Example
Scenario: Emma earns $90,000 per year (marginal rate 30% + 2% Medicare Levy = 32%). She salary sacrifices $10,000 into super for FHSSS.
Contribution stage:
- $10,000 goes into super
- Taxed at 15% inside super: $1,500
- Net in super: $8,500
- Deemed earnings (say 4.5%): $383
- Total FHSSS amount: $10,000 + $383 = $10,383
Release stage:
- Released amount: $10,383
- Taxed at marginal rate (32%) minus 30% offset = 2%
- Tax on release: $10,383 × 2% = $208
- Net amount in her hand: $10,175
What if she saved outside super instead?
- $10,000 of pre-tax income → after 32% tax = $6,800
- Bank interest at 4% → $272 (taxed at 32% = $87 tax on interest)
- Net after tax: $6,985
FHSSS advantage: $10,175 – $6,985 = $3,190 extra for her deposit
According to the ATO, the deemed earnings rate is the 90-day bank bill rate plus 3 percentage points (shortfall interest charge rate) (ATO guidelines).
Step-by-Step: How to Use the FHSSS
Step 1: Check Your Eligibility
Confirm you meet all eligibility criteria: 18+, first home buyer, intend to live in the property. You do NOT need to tell the ATO you're starting to save — just start making contributions.
Step 2: Make Voluntary Contributions
Set up salary sacrifice through your employer, or make personal contributions and lodge a notice of intent to claim a deduction. Keep records of all contributions.
Step 3: Request an FHSSS Determination
Before signing any contract, log into myGov and request an FHSSS determination. The ATO will tell you your maximum release amount. You can request a determination as many times as you want.
Step 4: Sign the Contract
Once you've found a property and your offer is accepted, sign the contract.
Step 5: Request Release
Within 14 days of signing (and before settlement), request release of your FHSSS amount. The ATO will:
- Withhold tax at your estimated rate
- Release the net amount to you within 15–25 business days
- Issue a payment summary for your tax return
Step 6: Move In
You must occupy the property as your main residence for at least 6 continuous months within 12 months of settlement.
Common Mistakes to Avoid
| Mistake | Why It's Wrong | What to Do Instead |
|---|---|---|
| Signing the contract before requesting a determination | You lose FHSSS eligibility for that purchase | Request determination first — it takes minutes on myGov |
| Assuming employer SG contributions count | Only voluntary contributions count towards FHSSS | Set up salary sacrifice or make personal deductible contributions |
| Exceeding the $15,000/year cap | Excess contributions still count towards concessional cap but can't be released | Track contributions carefully across financial years |
| Not lodging a notice of intent for personal contributions | Without it, the contribution doesn't count as concessional and may not be releasable | Lodge the notice before requesting your determination |
| Requesting release more than 14 days after signing | You may lose access to the released funds | Set reminders — request release as soon as you sign |
| Assuming the full $50,000 is all yours | Deemed earnings are included and taxed on release | Run the numbers before committing |
Records to Keep
- Payslips showing salary sacrifice deductions
- Confirmation from your super fund of voluntary contributions received
- Notice of intent to claim deduction (lodged and acknowledged)
- FHSSS determination from myGov
- Contract of sale for the property
- Settlement statement
- Bank statements showing receipt of FHSSS funds
Quick Checklist
- I am 18 or older
- I have never owned property in Australia
- I intend to live in the property for 6+ months in the first year
- I have set up voluntary contributions (salary sacrifice or personal deductible)
- I have NOT signed a contract yet — determination first
- I have requested my FHSSS determination via myGov
- I know my maximum release amount
- I have requested release within 14 days of signing
- I plan to move in within 12 months of settlement
If your financial situation is more complex — for example, you're self-employed, buying with a partner who isn't a first home buyer, or combining the FHSSS with other government schemes — it's worth getting professional advice. a registered tax agent (see the directory)
Still unsure whether the FHSSS is right for you? See our full decision guide on when a tax agent can help.
*Disclaimer: This is general information only. The FHSSS has specific eligibility rules that may change. Consult a registered tax agent or financial adviser for advice tailored to your circumstances.*