First Home Super Saver (FHSS) Scheme 

A Tax-Effective Way to Save for Your First Home

The First Home Super Saver (FHSS) Scheme is an Australian Government initiative that allows eligible individuals to save for their first home through their superannuation fund, taking advantage of the concessional tax treatment that applies within the super system.

By making voluntary contributions to super, first home buyers may be able to boost their deposit faster than saving through a standard savings account, thanks to lower tax rates and investment returns within super.

Eligibility Criteria (2025)

To be eligible to participate in the FHSS Scheme, an individual must:

  • Be 18 years or older

  • Never have owned property in Australia (including investment properties, commercial properties, or vacant land) unless the Commissioner grants an exemption due to financial hardship

  • Not have previously accessed the FHSS Scheme

  • Intend to live in the property as their main residence for at least six months within the first 12 months of it becoming practicable to do so

How the FHSS Scheme Works

1. Making Contributions

You can make voluntary contributions to your super fund, including:

  • Concessional contributions (e.g. salary sacrifice or personal contributions for which a tax deduction is claimed)

  • Non-concessional contributions (e.g. after-tax contributions)

Voluntary contributions under the FHSS Scheme are subject to the general contribution caps:

  • Up to $15,000 per financial year, and

  • A total maximum of $50,000 per individual (increased from $30,000 in prior years)

Note: Employer super guarantee contributions and spouse contributions do not count toward FHSS eligibility.

2. Withdrawing Funds

When you're ready to purchase your first home, you can apply to the ATO to withdraw your FHSS savings — this includes:

  • 100% of eligible non-concessional contributions

  • 85% of eligible concessional contributions

  • Associated earnings, calculated by the ATO using a deemed earnings rate

You must first request an FHSS Determination from the ATO, which will confirm your maximum release amount. Once received, you can then submit a release request.

3. Tax on Released Amounts

  • Concessional contributions and earnings withdrawn are included in your assessable income, but you receive a non-refundable 30% tax offset to reduce your liability.

  • Non-concessional contributions are not taxed, but their associated earnings are taxed (also with the 30% offset).

  • If no accurate tax estimate is available, the ATO will withhold 17% of the released amount at the time of payment.

Using FHSS Funds to Buy or Build

To use your FHSS funds:

  • You must apply for and receive your FHSS Determination before signing a contract

  • You must request the release of funds within 14 days of entering the contract to purchase or construct your home

  • You will then have 12 months to sign a valid contract from the date of release

  • You must move into the property as soon as practicable and live there for at least six months

If you do not purchase or build a home within 12 months, you must either:

  • Apply for an extension of up to 12 months, or

  • Recontribute the released amount (less tax withheld) into your super fund, or

  • Pay the FHSS tax of 20% on the amount released (not including associated earnings)

Example

Sarah makes $10,000 in concessional contributions and $5,000 in non-concessional contributions over two years. She applies to withdraw funds under the FHSS scheme. Assuming $2,000 in associated earnings:

  • Withdrawable amount = $8,500 (85% of concessional) + $5,000 (non-concessional) + $2,000 (earnings) = $15,500

  • Taxable amount = $8,500 + $2,000 = $10,500, included in assessable income

  • Tax offset = 30% of $10,500 = $3,150

Sarah can then use the $15,500 (less withheld tax) toward her home deposit.

Need Help with FHSS Contributions or Withdrawal?

At Complete Tax & Financial Services, we help individuals:

  • Maximise super contributions without breaching caps

  • Navigate the FHSS withdrawal and reporting process

  • Understand the tax implications of accessing FHSS funds

  • Ensure full compliance with ATO requirements

📞 Contact us today to see how the FHSS Scheme could help you take the first step toward home ownership — smarter and faster.

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