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Saving enough money for a deposit can be one of the biggest challenges for first home buyers. To help you get into your own home sooner, you might be able to access some of your super.

The First Home Super Saver (FHSS) scheme allows you to use your eligible personal voluntary contributions to your super to help save a deposit for your first home.

You can withdraw this amount, plus associated earnings when you are ready to buy a home.

Key points:

  • You can use your personal voluntary contributions (without exceeding contribution caps) to your super account to help save a deposit for your first home.
  • You can withdraw up to $15,000 of your voluntary contributions from any one financial year, and up to $50,000 across multiple years, plus associated earnings when you are ready to buy your first home. 
  • You need to meet the government’s criteria to qualify for the FHSS scheme.
  • Any before-tax money you put into super is taxed at 15%. This could be lower than the maximum tax rate for your income.

The benefits of using the First Home Super Saver

The scheme can help you reach your deposit goals much sooner. This is because it taps into super’s tax breaks, making it easier to save.Ìý

Making extra voluntary before-tax contributions can also help reduce the tax you pay on your income. This means you keep more of your money. And because it’s in your super, you can’t dip into it until you’re ready to buy your first home.Ìý

How to qualify for the First Home Super Saver scheme

To access some of your super early as part of the scheme, you need to meet all of these government conditions:  

  • ÌýYou're 18 years old or older when requesting to access your super as part of the scheme. This can include eligible contributions that were made before you turned 18.
  • You're a first home buyer, including having never owned property or land in Australia.
  • Your name must be on the title of the property you buy.
  • You don’t have a previously completed release request through the FHSS scheme. 

Ìý

If you’ve lost ownership of your home due to financial hardship, you might be able to apply for the FHSS scheme. Hardship includes losing ownership due to: 

  • ²ú²¹²Ô°ì°ù³Ü±è³Ù³¦²â 
  • separation from your partner or a relationship breakdown
  • losing your job 
  • illness
  • natural disaster.  

How the First Home Super Saver scheme works

The scheme lets youÌýuse your extra voluntary super contributions to save for your first home. You can later withdraw the money, plus associated investment earnings on the deposited amount, to help pay for your first home. The money you contribute to your super grows based on the super investment mix you’ve chosen.

The scheme can also offer significant tax and financial benefits:Ìý

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First Home Super Scheme advantages Benefit to you
The money in super can’t be touched until you’re ready to use it for a deposit. This removes the temptation to dip into your savings.
The money you deposit into a bank account could be taxed at a higher rate, up to 47%. Contributions to super are usually taxed at 15%. This means your money can go a lot further and stays invested in the markets where it could continue to grow.

Ìý

How much you can contribute

There are rules on the amount of money you can contribute each year and the type of contributions.

  • Your contributions must be voluntary contributions. This means the compulsory super your employer pays you, called the super guarantee, can't be used for the First Home Super Saver Scheme.
  • Voluntary contributions can include:
    • before-tax contributions such as salary sacrifice.
    • after-tax contributions where you deposit extra money directly into your super account.
  • There are limits to how much you can contribute. The before-tax contribution limit is $30,000 per financial year. This includes the Super Guarantee paid by your employer. This limit also applies if you claim a tax deduction for personal contributions made. The after-tax contribution limit is $120,000 per financial year. Extra tax may apply if you exceed these limits.

It’s simple to set up a salary sacrifice or make an after-tax contribution to your super

How much you can withdraw

  • You can only withdraw a lump sum, once.ÌýÌý
  • You can withdraw 100% of eligible after-tax contributions you haven’t claimed a tax deduction for.
  • You can withdraw 85% of before-tax contributions. This is because the fund taxes your before-tax contributions at the super contribution tax rate of 15%.Ìý
  • The money you withdraw also includes the investment earnings of the amounts you have contributed for the FHSS scheme.

Case study: Let's see how it will work

Michelle earns $60,000 a year and wants to buy her first home. Using salary sacrifice, she contributes $10,000 of pre-tax income into her super account each year, increasing her balance by $8,500 a year (after the 15% contributions tax). After three years, she can withdrawÌý$25,400 she has saved, including expected notional investment earnings.ÌýÌý

Her withdrawal is taxed at her marginal rate (including Medicare levy), less a 30% offset, leaving her withÌý$24,900 that she can use for her house.ÌýÌý

Michelle has saved aroundÌý$5,600 more for her deposit by utilising the First Home Super Saver Scheme than if she saved in a standard deposit account.Ìý

Assumptions:Ìý

  • All numbers presented are in real terms, in today’s dollars deflated using Average Weekly Ordinary Time Earnings (AWOTE) of 3.5% p.a.
  • Member’s age is 30 and invested in the High Growth Investment option earning 6.7% per annum net of all investment fees and taxes. 
  • Default fees and caps are based on 91ºÚÁÏ's products.
  • Income earners are in the 32.0% marginal tax bracket.  This rate includes the Medicare levy. 
  • Contributions and the related asset fees are expected to occur midyear.   
  • The standard deposit account is expected to earn interest at 3.70% p.a. 
  • The amount invested in cash is assumed to be $6,800 every year. We have assumed the member would maintain the same after-tax income under the scenario where they save the house deposit in superannuation or outside superannuation. 
  • The FHSS scheme withdrawal from super has been calculated assuming the associated earnings interest rate applying to each contribution counted in the FHSS releasable contributions amount is 6.7% p.a.
  • Income tax and Medicare levy rates as at Feb 2025. 

What happens if my plans change, and I don't buy a home?

You’ll have up to 12 months to sign a contract to buy or build a property after release of your scheme funds. If you haven’t signed a contract within that time, you can:Ìý

  • Get an extension up to 12 months.
  • Put the funds back into your super accountÌýless any tax withheld.
  • Keep the funds, subject to a FHSS scheme tax equal to 20% of your assessable First Home amount, less any withheld tax.

How much tax you will pay

The First Home Super Saver scheme funds form part of your assessable income in your tax return for the year the money is released to you. The ATO will withhold tax equal to either your usual tax rate plus Medicare levy, minus a 30% offset, or 17% if your usual tax rate can’t be calculated. Investment earnings on your super are also only taxed at 15%.

Learn more about how your super is taxed

How do you get your money?

The ATO recommends you request the release of your FHSS scheme funds around the same time as you apply for a home loan. Release of funds can take between 15 and 25 business days.Ìý

To access the FHSS scheme, follow these steps.Ìý
Ìý

  1. Ensure you’re eligible and your super fund can release funds for the FHSS scheme amount.Ìý
  2. Make your extra voluntary contributions to your super fund.Ìý
  3. Apply to the ATO through your The ATO will tell you how much money you can withdraw from your super for the FHSS Scheme. This is called a Determination. You need to have this Determination before you sign your contract.ÌýÌý
  4. Request a FHSS scheme release authority The ATO will instruct 91ºÚÁÏ to release your funds to them. Once they have deducted any applicable tax, the ATO will pay the money to you.Ìý
  5. You have 12 months from the day you request a release request to tell the ATO you have signed a contract to buy a house. If you don't, you will need to return the money to your super. If you decide to not go ahead with buying a home, or don’t sign a contract within 12 months, you may:Ìý
    • be able to keep the funds. This is subject to a tax equal to 20% of your assessable First Home amount, less any withheld tax, orÌýÌý
    • re-contribute the assessable FHSS scheme amount into super, less any withheld tax.Ìý
  6. The scheme funds form part of your assessable income in your tax return for the year the money is released to you.

Related information

Where to next?

Home Buying Basics

Excited to buy your first home but want practical information about organising finances and the costs involved?Ìý

Register for a webinar designed for first home buyers. It covers the basics of buying a property, mortgages and borrowing money.

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Our range of tools and calculators can help you get on your way to achieving your savings goals. Set-up a budget, check your insurance needs, and plan for your retirement.Ìý

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[AD2] Members can get advice about their 91ºÚÁÏ accounts at no extra cost, or advice on their broader needs for a fee. Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by 91ºÚÁÏ.