Buying your first home in Australia can feel out of reach—but this scheme could help you fast-track your deposit using the tax advantages of super. Let’s break it down.
What is the FHSSS?
The First Home Super Saver Scheme allows eligible Australians to make voluntary contributions into their super and then withdraw those savings—plus earnings—to put toward a home deposit. Why does this matter? Because super is generally taxed at a much lower rate than your regular income or savings account earnings. You can withdraw up to $50,000 of your voluntary contributions—not including your employer’s compulsory contributions—making it a very tax-effective way to grow your deposit.
To use the scheme, you must:
And remember—this is a one-time opportunity. Once you use the FHSSS, you can’t access it again.
Here’s how the numbers stack up:
Real Examples
Let’s look at Jasmine.
She earns $80,000 and salary sacrifices $10,000 into her super. After the 15% super contributions tax, she has $8,500 remaining. Add assumed earnings of around $500—and her total releasable amount is roughly $9,000.
Her effective tax on withdrawal? Just 2.5%. That’s a huge saving compared to a standard bank account.
Note: The released concessional amount is generally taxed at your marginal rate with a 30% tax offset, so the effective tax is often much lower than ordinary income tax (exact outcomes vary by income and Medicare levy).
Or take Ben and Priya — a couple who each contribute $12,000 a year for two years. After earnings, they each withdraw about $25,500 — giving them a combined deposit of over $50,000.
Strategy & Next Steps
The FHSSS is a powerful tool—but only if you understand the rules, timelines, and how to use it correctly.
If you’re considering it, now’s the time to plan your contributions and apply through the ATO for a determination before making any moves.
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The First Home Super Saver Scheme can genuinely change the game for first home buyers—but only if you understand how to play it smart.
Disclaimer: Super Advice Ai provides general financial information and does not consider your personal objectives, financial situation, or needs. Please consult a qualified financial advisor or sign up for our partner’s affordable automated advice plan to receive personal advice tailored to your needs.
Do I have to use my employer’s super fund?
No. You’re using your voluntary contributions — not employer payments. But you can make your additional contributions to the same super fund – if you’re making personal contributions and want to claim a tax deduction, you’ll need to lodge the correct notice with your super fund before the ATO deadlines.
What if I change my mind?
If you don’t buy a home in time after drawing your super out, you must either return the funds to super or pay extra tax at your personal rate less 30% on the assessable amount.
Can couples both use it?
Yes — each eligible person can withdraw up to $50,000, meaning a couple could access up to $100,000.
What if I’ve owned investment property?
Unfortunately, that generally makes you ineligible. Ownership of any property — including vacant land or commercial real estate — disqualifies you.
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The First Home Super Saver Scheme can be a smart way to boost your deposit — especially if you plan ahead. By using the lower-tax environment of super, many first-time buyers can save faster and more efficiently.
But like any government scheme, it’s important to understand the fine print. If the FHSSS sounds like it might suit your situation, it’s worth speaking with a professional to help you structure it correctly.
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Disclosure: General information only. Consider your objectives, financial situation and needs, and seek professional advice before acting.
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