Save for a deposit inside super, then release up to $50,000 plus associated earnings to buy your first home.
The First Home Super Saver Scheme, almost always called the FHSS or FHSSS, lets first-home buyers use the favourable tax environment inside super to save for a deposit. Voluntary contributions go into your super fund and are taxed at the concessional super rate, then later released, with associated earnings, to help fund the home you buy. It is not a separate savings product. It is a way of routing voluntary contributions through super.
According to the ATO's FHSS scheme page, you can have up to $15,000 of eligible voluntary contributions count towards the scheme in any one financial year, and up to $50,000 across all years. These contributions still count towards your normal concessional or non-concessional contribution caps, so you need to plan around those at the same time.
| Item | Limit / treatment |
|---|---|
| Eligible contributions per year | Up to $15,000 |
| Eligible contributions across all years | Up to $50,000 |
| Non-concessional contributions released | 100% |
| Concessional contributions released | 85% (the 15% contributions tax is retained) |
| Associated earnings | Released using a set rate set by the ATO |
To make a release request you must be at least 18 years old, never have held an interest in property in Australia (including investment property), and intend to live in the home you buy. Your name must be on the title, and you can only make one FHSS release request in your lifetime. The ATO has a step-by-step process for requesting a determination first, then a release after you have signed a contract or are ready to.
You request a determination from the ATO, which tells you the maximum you can release based on your eligible contributions and associated earnings. Once a determination is in place, you sign a contract to buy or build your home within the ATO's required timeframe, then request the release. The ATO instructs your fund to send the eligible amount, and any tax is sorted through your tax return for the year.
Disclaimer: This article is general information, not tax or financial advice. Rules and caps can change. Confirm the current position with the ATO and seek advice for your own circumstances.