FHSS Timing: Request Your Release Before You Sign
The FHSS release steps in the right order, the 90-day grace period after signing, and the settlement deadline that cannot be fixed.
With the First Home Super Saver (FHSS) scheme, the order you do the paperwork matters as much as the saving itself. For years, signing a contract before requesting your release meant extra tax from the ATO — the tax office — or no release at all.
The rules got kinder in September 2024, adding a safety net. But the sequence still matters, and one deadline remains genuinely fatal. Here it is in plain English.
The three-step dance, in the right order
Step one is the FHSS determination — a free document from ATO online services that says exactly how much you can withdraw. It costs nothing and commits you to nothing, but you can't proceed without it.
Step two is the release request — actually asking the ATO to pull the money out of your super fund. You only get to do it once, so make sure your determination amount is right first.
Step three is signing a contract to buy or build. The cleanest sequence: determination sorted early, release requested before you're legally committed to a purchase.
🎫Quick win
The determination is free and non-binding. Request it through myGov when house hunting turns serious, not the week of the auction.
The 90-day safety net (and its hard edge)
Since 15 September 2024, signing before you request the release is no longer automatically a disaster: you can sign a contract up to 90 days before making a valid release request. If you sign in a rush, you have roughly three months to get the release request in and tell the ATO. Miss that window and extra FHSS tax applies.
One deadline has no mercy: settlement. Once ownership transfers to you, you can no longer request an FHSS determination — and without one, no release. Your voluntary contributions stay in super until retirement. The safety net catches people who signed recently, not people who already own the place.
🪤The trap
Settle first, remember FHSS second, and the money is locked in super until you retire. The 90-day grace period runs from signing — it can't resurrect a scheme you never activated before settlement.
The money is not instant
After you make a release request, the ATO says it can take 15 to 20 business days for the money to land in your bank account — around a month of real time. Your fund sends the money to the ATO, tax is withheld, and the rest arrives eventually.
If your settlement date is 30 days after signing — common enough — a release requested after signing is cutting it fine. That's the strongest argument for requesting the release before you're contractually on the clock.
The 12-month clock after release
Requested your release but haven't found a house yet? You get 12 months from the release request to sign a contract to buy or build, and the ATO can extend that by another 12 months — extensions are commonly granted.
If you never buy, there are two exits. Option one: recontribute the released amount back into super, tell the ATO, and no extra tax applies. Option two: keep the cash and pay FHSS tax of 20% on the assessable part of what was released — the scheme taking back a tax break you no longer qualify for.
Neither exit is a catastrophe, but don't request the release until buying is realistically close.
Your pre-signing checklist
The whole trap dissolves if you front-load the admin. Before you get serious about making offers:
- Request your FHSS determination via ATO online services — free, non-binding, do it early
- Request the release when buying is weeks away, not hours away — allow 15 to 20 business days for the cash
- If you sign first, make the release request and notify the ATO within 90 days of the contract date
- Never let settlement happen before you've at least requested a determination — that door locks permanently
FAQ
Can I request an FHSS release after signing a contract?
Yes. For determinations made on or after 15 September 2024, you can sign up to 90 days before making a valid release request. Miss that window and extra FHSS tax applies — and once settlement transfers ownership to you, you can no longer request a determination at all.
How long does an FHSS release take to hit my bank account?
The ATO says allow 15 to 20 business days from your release request — roughly a month of real time. If settlement is close, request the release early.
What happens if I release my FHSS money but never buy?
You have 12 months from the release request to sign a contract, extendable by another 12. If you still don't buy, either recontribute the released amount back into super with no penalty, or keep it and pay 20% FHSS tax on the assessable portion.
Run your own numbers
Sources: figures checked against ATO published rates and thresholds for FY2025-26 at the review date. See how we check our numbers.
⚠️ General information only — not tax or financial advice. Figures relate to FY2025-26 unless stated otherwise.