First Home Super Saver (FHSS) Scheme

The First Home Super Saver (FHSS) scheme allows you to save money for your first home inside your super fund. This will help first home buyers save faster with the concessional tax treatment of superannuation.

Under the scheme, first home savers can contribute extra money into your super (up to $15,000 per financial year), then draw that money out as a deposit on your first home. The maximum you can contribute and withdraw towards the FHSS is $50,000 across all years to put towards your deposit for your first home.

Who is eligible for the scheme?

To qualify for the first home super save scheme you must meet the following criteria:

  • You must be 18 or older to access your super contributions.
  • You have never owned a property before, including an investment property.
  • You cannot use your contribution to purchase a houseboat, motor home or vacant land.
  • You can only make use of the scheme once.

You may still be eligible for the FHSS even if you have previously owned a property in Australia under the financial hardship provision. Visit the ATO website to learn more about this. 

There are many rules around this scheme and we recommend you visit the ATO website for further details.  

Below is a brief outline of just some of the rules associated with this scheme.

There are limits on how much you can save

From 1 July 2022, the amount of eligible contributions that can count towards your maximum releasable amount across all years increased from $30,000 to $50,000. The amount of eligible contributions that can count towards your FHSS maximum releasable amount for each financial year will remain at $15,000.

Each person has an annual contribution limit

Rules and limits for the FHSS apply to an individual, which means both members of a couple planning to buy their first home are eligible to use the scheme to save for a home deposit.

However, they will still have to adhere to maximum contribution limits for concessional and non-concessional limits in their super or they may have to pay extra tax. 

Your super fund is not in charge

The ATO – not your super fund – decides what super contributions count towards the FHSS and the associated earnings. It then advises your super fund on the amount that can be released when you submit an application to withdraw your deposit savings.

You can buy a property with someone else

You can still access your FHSS savings even if you purchase a house with someone who is not a first homebuyer and you want to buy your new family home in both names.

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

What happens if I have accessed the FHSS but don’t buy a home? 

If you haven't contracted to purchase or construct a home within 12 months of receiving the FHSS amounts, you can either apply for an extension of up to 12 months, put the same amount of money back into super less any tax withheld by the ATO, or keep the released amount and be subject to a FHSS tax.