First Home Super Saver Scheme, Explained
The First Home Super Saver Scheme (FHSSS) lets first home buyers make voluntary contributions into their super fund and later withdraw them — along with associated deemed earnings — to help fund a deposit, generally taxed more favourably than saving the same money in a regular bank account.
How it works
You make voluntary contributions into your super fund — either salary sacrifice (before-tax) or personal (after-tax) contributions — and nominate them, or ask the ATO to identify them, as FHSSS contributions. These sit inside your super, invested like the rest of your balance, until you're ready to buy. When you're ready, you apply to the ATO for a FHSSS determination and then request release of the eligible amount, which is paid out to help fund your deposit.
The tax advantage
Voluntary concessional (before-tax) contributions are generally taxed at 15% going into super, rather than your marginal income tax rate. When released under the scheme, the withdrawn amount is taxed at your marginal rate less a tax offset, which for most people results in a lower effective tax rate than simply saving the same money outside super. Non-concessional (after-tax) contributions released under the scheme aren't taxed again on the way out, since tax was already paid on that income.
Limits to know
There's a cap on how much you can contribute and later release under the scheme, on top of the usual contribution caps that apply to super generally — see Contribution Caps Explained. Because these limits are indexed and can change, always confirm the current figures before making contributions specifically for this purpose.
Who's eligible
Broadly, you need to be a first home buyer (never having owned property in Australia before, with some limited exceptions), intend to live in the property, and meet other conditions set by the ATO. It's worth checking eligibility carefully before contributing, since the scheme has specific rules around what counts as a qualifying purchase and timing.
Things to watch
Your money is still inside super until you apply for release, so it's not instantly accessible — there's a process and timeframe to allow for. If your circumstances change and you don't end up buying a home, the contributions generally stay in super as normal retirement savings rather than being accessible as cash. It's also worth weighing FHSSS against simply saving in a high-interest account if you expect to buy very soon, since the application and release process takes time.
Frequently asked questions
Can I use the FHSSS scheme more than once?
Generally no — it's designed for a single home purchase as a first home buyer.
Does my employer's compulsory Super Guarantee count toward the FHSSS limit?
No — only voluntary contributions you've made yourself count, not the compulsory contributions your employer pays.
Can couples both use the scheme for the same purchase?
Yes, each eligible individual can use their own FHSSS contributions and release amount toward a joint purchase, potentially doubling the total available.
Contribution limits, release amounts and eligibility rules for the FHSSS are set by legislation and can change; confirm current details on ato.gov.au before publishing. This article contains general advice only. It has been prepared without taking into account your personal objectives, financial situation or needs, and does not constitute a recommendation to acquire, hold, or dispose of any financial product. Before acting on this information, consider its appropriateness to your own circumstances, and seek independent financial, tax and/or legal advice, or speak with a licensed financial adviser, before making any decision.
