What is the first home super saver scheme?

The First Home Super Saver (FHSS) scheme can help you buy or build your first home using money from your super. 

If you’re an eligible first home buyer, the FHSS scheme allows you to withdraw some of your voluntary super contributions, along with associated earnings, to put towards a first home deposit.

Most people still need savings outside of the FHSS scheme, but by saving within superannuation, the FHSS could help you save money on tax.

How much can I withdraw from my super to buy my first home?

The FHSS scheme allows you to withdraw up to $15,000 of your voluntary contributions per financial year (from 1 July 2017), up to a total of $50,000 (or $100,000 for couples) plus any associated earnings.

Only the voluntary contributions you’ve made such as salary sacrifice amounts or contributions from your bank or savings account can go towards your home deposit with the super saver scheme. You can’t include the contributions your employer is required to make for you, such as Superannuation Guarantee (SG) contributions, or spouse contributions. 

If you have KiwiSaver and other transfer amounts from foreign super funds, these are considered voluntary contributions and therefore can be used towards the FHSS scheme to purchase your first home in Australia, although there may be some differences that apply. For more information refer to the ATO website.

 

FHSS scheme infographic

 

Who is eligible?

To access voluntary super contributions under the FHSS scheme, you must meet some key eligibility criteria:

  • be 18 years or older 
  • have not previously held interest in property in Australia (unless you lost your property due to financial hardship)
  • have not previously made a successful FHSS release request
  • be looking to buy or build a property within the next 12 months
  • intend to occupy the property for at least six months within the first 12 months

Eligibility is assessed on an individual applying. This means that couples, siblings or friends can each access their own eligible voluntary contributions to purchase the same property. If any of you have previously owned a home, it will not stop anyone else who is eligible from applying. 

The home must also be for residential purposes in Australia and your name must be on the title of the property you buy. You cannot use the FHSS scheme to purchase a houseboat, motor home, vacant land (unless you’re building on it), investment property or any other form of property not able to be occupied as a residence.

To see a full list of eligibility criteria, visit the ATO website.

How do I withdraw my money from super to buy or build a house?

Step 1: Request a FHSS determination

It's important you request a FHSS determination from the ATO via myGov before ownership of any real property transfers to you (generally following settlement of a property contract). You can request a determination on more than one occasion, and you will need a determination before you can make a release request. 

The ATO will let you know the maximum withdrawal amount from your super for the FHSS and the tax applicable. 

Step 2: Request the release of your super savings

After you have a FHSS determination and are ready to access your FHSS amount, you can then request a release up to the amount stated on your FHSS determination. The ATO will then liaise with us, as your super provider. We’ll release the funds to the ATO, who will then deduct any applicable tax (and offset the amount against any outstanding debts with the ATO or any other Commonwealth Government agency) and pay the remaining funds into your nominated bank account. You should allow 15-20 business days for this to happen.

Step 3: Sign a contract and notify the ATO

If the date you ‘requested the release’ was after 14 September 2024, you have 12 months to sign a contract to buy or build your first home. You need to notify the government via myGov within 90 days of signing the contract. If you don’t you may be subject to FHSS scheme tax.

If you don’t sign a contract within the 12 months, the ATO may grant you an extension for a further 12 months or you can redeposit the money back into your super.

If your ‘requested release’ date was before the 15 September 2024 visit the ATO website for details.

Step 4: Complete your tax return

The ATO will send you a payment summary at the end of the financial year. You will need to include the assessable FHSS released amount and tax withheld shown in your tax return.

What’s next?

If you want to move into your first home as soon as possible, use these helpful tools and tips.

Get expert advice

Everyone’s tax circumstances and eligibility are different, so it’s worth seeking advice to make sure the FHSS scheme is right for you. Call TelstraSuper Financial Planning on 1300 033 166 or request a call back.

Request a call back

Make voluntary contributions

You can make eligible voluntary contributions to your super under the FHSS scheme such as:
• Pre-tax (concessional) contributions ie salary sacrifice
• Post-tax (non-concessional) contributions such as a contribution from your bank account or other savings account

Find out now

Read FAQs

For more information about FHSS scheme read our Frequently Asked Questions

Read FAQs
 

Frequently Asked Questions

  • Who runs the scheme?

    The scheme is administered by the ATO, but you pay your contributions into your super account. You do not need to tell us or the ATO that the voluntary contributions you are making into your super account are being made for the FHSS purposes.

  • How many times can I use the scheme?

    You can only withdraw money from your super once to buy your first home under the FHSS scheme. 

    If you’ve previously owned a home/property but suffered a financial hardship that resulted in loss of ownership of all property interests, you may be eligible to apply for the financial hardship provision under the FHSS scheme. Visit the ATO website for more information.

  • What are the tax benefits of using my super to buy my first home?

    The FHSS uses the tax benefits of superannuation to help you save more money to put towards your home deposit. Since some voluntary contributions (e.g. salary sacrifice) are taxed at 15%, you could benefit if this is lower than your marginal tax rate.

    You’ll also receive associated earnings when you withdraw your money. This refers to an applied growth rate to your contributions determined by the ATO which is usually higher than your savings rate. For more information visit the ATO website.

  • How much tax will I pay when I withdraw money from my super to buy my home?

    The tax applicable will depend on the type of voluntary contributions you made to your super from 1 July 2017. When you apply for your FHSS determination from the ATO, they will let you know how much tax they will deduct from the amount you can withdraw.

    • Before-tax contributions — these are taxed at 15% in your super. When released under FHSS, your marginal tax rate applies with a 30% tax offset.
    • After-tax contributions — you make these contributions with money that’s already been taxed, so no further tax applies when it enters the fund, nor when it leaves under the FHSS scheme.
    • Earnings — earnings are based on a deemed rate (not your super’s actual investment returns). When released under the FHSS scheme, earnings are taxed at your marginal tax rate with a 30% offset. Visit the ATO website for more information.
       
  • What if I don’t buy a home within 12 months of receiving the money?

    If you don’t buy a home within 12 months of receiving your money, you can refund it back into your super account. The ATO may grant an extension for another 12 months. If you choose to refund it back to your super, you can then reapply to access your super money later. There’s no restriction on the number of times you can reapply providing you meet the eligibility criteria. 

    However, if you don't buy a home after your time expires and don’t refund the money back into your super account, you may pay extra tax. Visit the ATO website for more information.

  • When is the right time to buy a house with the FHSS scheme?

    The right time to buy will depend on your financial situation. As an individual, you will need to plan out how long it will take you to contribute the funds needed for the First Home Super Saver scheme, and how long it will take to save up the rest of your deposit. You will need to weigh this against the increasing rate of house prices as well, as waiting longer may see you paying more.

  • Where can I get more information about the FHSS scheme?
    Visit the ATO website for more information about the scheme. 
Any general advice has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice, you should consider whether it is appropriate to your individual circumstances. Before making any decision, you should obtain and read the relevant Product Disclosure Statement and Target Market Determination or call us on 1300 033 166 for copies of these documents. You may wish to consult an adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.