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Saving faster with the First Home Super Saver scheme

Back to Grow my super

Now owning your first home could become a reality sooner than you think. The Government’s First Home Super Saver (FHSS) scheme means eligible first home buyers can use their super to help save for a deposit. 

Super can speed up saving

Eligible first home buyers may be able to use their super as a tax-effective way to save for part of their home deposit. The concessional tax treatment of super may help first home buyers save faster.

Contributions

Concessional tax treatment

Before-tax contributions are generally taxed at 15%

Balanced

Contribute and save up to $50,000

Limited to $15,000 per financial year toward the FHSS scheme

Here's how it works

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Find out if you're eligible

You must be 18 years old or older to request a FHSS determination or a release of contributions under the scheme. However, you can start making eligible contributions before you are 18. Also, you must have never owned a property in Australia or previously requested the release of your super savings under the scheme. Check here to see if you’re eligible. 

Contributions

Make extra contributions

On top of the Superannuation Guarantee amount your employer pays, you can make before-tax contributions like salary sacrifice, or after-tax personal contributions. Only these extra contributions can be accessed. You can release up to $15,000 per financial year and $50,000 in total under the FHSS scheme. You should also beware of contribution caps. These are the limits on the amounts you can contribute (see limits here). Amounts in excess of concessional or non-concessional contribution caps are not eligible for the FHSS scheme. You should also consider whether making extra payments is right for you. It’s important to note that the money you contribute to super can only be accessed in specific circumstances. If you choose not to draw on it for the FHSS scheme, the normal preservation rules will apply. 

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Apply to withdraw

When you’re ready to buy your first home, apply to the ATO to withdraw your extra contributions along with any associated earnings. Specific rules apply to when and how much you can apply for release so it’s important you check the rules early and before you sign a contract. For more information on FHSS eligibility and rules, refer to the ATO. 

Try it for yourself using our calculator

See how you could use the FHSS scheme to help own your first place faster. 

Try it out

See how Carly bought her first home faster

A woman wearing headphones looks at her laptop screen A woman wearing headphones looks at her laptop screen

Carly saved an extra $8,180

26-year-old Carly is currently working whilst living at home with her parents and earns $65,000 a year, plus super. Carly estimates she can set aside $6,000 per year and decides to arrange a before-tax salary sacrifice agreement with her employer. After five years of salary sacrificing, Carly has $29,600* available in her super fund for a deposit under the First Home Super Saver scheme. By putting extra into her super, Carly saves an additional $8,180 to put towards her deposit. 

How Carly saved an extra $7,351 bar chart How Carly saved an extra $7,351 bar chart

How Carly saved an extra $8,180 with the FHSS scheme

Carly contributed $6,000 per year to her super under the FHSS After 5 years of contributing via FHSS, she saves $29,600 By saving via the FHSS, she saves an additional $8,180 to put towards her deposit
  Extra contribution (using salary sacrifice) Savings account
Year 1 $4,959 $3,895
Year 3 $16,531 $12,393
Year 5 $29,600 $21,421


*Case study assumptions:

  • Carly earns $65,000 per year.
  • Using salary sacrifice, she contributes $6,000 per year of before-tax income into her superannuation account.
  • Carly’s before-tax contributions under the FHSS scheme are within the annual limits that count toward the total maximum releasable amount of $50,000.
  • After 5 years she has saved an additional $8,180 by choosing to use the FHSS scheme with assumed associated earnings of 6.90%. This is compared with saving an after-tax income into a bank account with an interest rate of 4.50% pa.
  • Dollar-based administration fees and insurance premiums are ignored for the purpose of this calculation.
  • You should be aware that the value of your investments will rise or fall, and past performance is not an indicator of future performance.
  • These assumptions do not take into consideration the impact of inflation.

This information is illustrative only, is current as at November 2023 and can change. 

Learn more to see if you can start saving for your deposit today

When you’re ready, it’s easy to start. In just a few steps, you can set up your extra contributions which is an important part of using the scheme. There are limits on the amount you can contribute (see limits here), and you should consider whether making extra contributions is right for you.

Get started

Get the facts

For more information, download this handy fact sheet.

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