First Home Super Saver scheme
A scheme letting first home buyers save a deposit inside super, taxed at 15% instead of their marginal rate.
The FHSS scheme lets you make voluntary contributions to super and later withdraw them, plus deemed earnings, to buy your first home. Concessional contributions are taxed at 15% going in rather than at your marginal rate.
You can contribute up to $15,000 in any one financial year and withdraw a maximum of $50,000 in total, plus associated earnings. Only voluntary contributions count — compulsory employer super is excluded.
On withdrawal, concessional amounts are taxed at your marginal rate less a 30% offset, which for most savers leaves a clear net benefit compared with saving the same money in a bank account.
Saving inside versus outside super
On a 37% marginal rate, $15,000 of salary saved to a bank account nets about $9,450. Routed through FHSS as a concessional contribution, $12,750 lands in super before earnings.
The bit people get wrong
You must apply for an FHSS determination and release before signing a contract, and the money can take weeks to arrive. Buyers who sign first and apply afterwards can find themselves unable to access the funds for settlement.
Common questions
How much can I withdraw under FHSS?
Up to $15,000 of eligible contributions from any single financial year, capped at $50,000 in total across all years, plus associated deemed earnings.
What if I do not end up buying?
You generally have twelve months to sign a contract, extendable by a further twelve. If you do not, you can recontribute the amount or keep it in super and pay a flat tax on the released amount.
Can both partners use the scheme?
Yes. The limits apply per person, so a couple can each save and withdraw up to $50,000 towards the same property.
Run your own numbers
Related terms
Source: Australian Taxation Office