First Home Super Saver Scheme (FHSSS)
How to use voluntary super contributions to save for your first home, the $50,000 maximum release, $15,000 annual limit, withdrawal tax treatment, timing traps, and the step-by-step process through myGov.
The FHSSS lets first home buyers save through voluntary super contributions, accessing a maximum of $50,000 (up to $15,000 per financial year) plus deemed earnings calculated at the Shortfall Interest Charge rate. Concessional contributions are taxed at 15% going in (instead of your marginal rate), and on withdrawal, the assessable amount is taxed at your marginal rate minus a 30% offset. For someone on a 32.5% marginal rate, this creates an effective withdrawal tax rate of just 2.5%.
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact ATO. Read our editorial scope →
How the FHSSS works
You make voluntary contributions to your super fund on top of what your employer pays through mandatory SG. These can be concessional (salary sacrifice or personal deductible contributions) or non-concessional (after-tax personal contributions). The maximum releasable amount is $50,000 in total contributions, with a $15,000 cap per financial year. When you apply for release, the ATO calculates associated earnings using the Shortfall Interest Charge rate (currently the 90-day Bank Bill rate plus 3%) rather than your fund's actual investment returns.
Tax benefits: going in and coming out
Concessional contributions are taxed at 15% in your super fund instead of your marginal rate. For someone on a 32.5% marginal rate, that is an immediate 17.5% tax saving on each contribution. On withdrawal, the assessable amount (concessional contributions plus deemed earnings) is included in your assessable income but attracts a 30% tax offset, reducing the effective tax rate to your marginal rate minus 30%. Non-concessional contributions are released entirely tax-free because the income was already taxed at your marginal rate before contribution.
The four-step FHSSS process
The scheme operates through a structured four-step process managed via myGov and the ATO.
Step 1: build voluntary contributions
Make eligible voluntary contributions from 1 July 2017 onwards, staying within the $15,000 annual and $50,000 total limits. Contributions count toward both FHSSS limits and the overall concessional contributions cap ($30,000 for 2025-26, which includes employer SG).
Step 2: request a determination
Before signing a purchase contract, log into myGov and request a determination from the ATO. This confirms your maximum releasable amount including deemed earnings. You must have this determination before committing to a purchase.
Step 3: request release
Submit a release request through myGov. The ATO issues a release authority to your fund, which releases funds to the ATO (not directly to you). The ATO withholds applicable tax and pays the net amount to you. The entire process typically takes 15 to 25 business days.
Step 4: purchase and notify
Sign a contract to purchase or construct a home within 12 months of requesting release (24 months with extension). Notify the ATO within 90 days of signing. You must intend to live in the property for at least 6 months of the first 12 months after settlement or completion.
Eligibility requirements
You must be over 18 years old, have never owned property in Australia (including investment properties), and intend to live in the purchased property for at least six months of the first 12 months. The property can be new or existing residential property in Australia.
Common pitfalls that cost first home buyers money
The FHSSS has several timing traps and interaction rules that catch buyers who do not plan carefully.
Determination timing
The most common and most expensive mistake: signing a purchase contract before receiving your FHSSS determination from the ATO. This can disqualify you from the scheme entirely, turning what should be a tax-advantaged withdrawal into trapped super contributions.
Concessional cap interaction
Your personal concessional contributions (salary sacrifice plus personal deductible) count towards both the $15,000 annual FHSSS limit and the overall $30,000 concessional contributions cap (which includes employer SG). Exceeding the concessional cap triggers excess contributions tax, regardless of FHSSS intentions.
Worked example: salary sacrificing $15,000 per year for three years
Jade, a 28-year-old marketing analyst in Gold Coast earning $90,000, salary-sacrifices $15,000 per year for three years into her super fund for FHSSS purposes.
Statute references
- ITAA 1997 Division 313 (First Home Super Saver Scheme provisions)
- ITAA 1997 Division 291 (concessional contributions cap interaction)
- ATO FHSSS guide (determination and release process via myGov)
Frequently asked questions
Do employer Super Guarantee contributions count towards the FHSSS?+
What happens if I do not buy a home within 12 months of requesting release?+
Can I use the FHSSS if I have previously owned an investment property?+
Must I request the FHSSS determination before signing a purchase contract?+
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