First Home Super Saver (FHSS)
A scheme allowing first home buyers to save for a deposit inside super, benefiting from lower super tax rates on contributions.
The First Home Super Saver Scheme (FHSS) allows first home buyers to save for a home deposit inside their super fund, taking advantage of the concessional tax treatment of super. You can make voluntary contributions (both concessional and non-concessional) of up to $15,000 per year and $50,000 in total, then withdraw these amounts (plus deemed earnings) when you're ready to buy your first home.
The tax benefit works because concessional contributions are taxed at just 15% inside super, compared to your marginal rate outside super. When you withdraw under the FHSS, the concessional amounts are taxed at your marginal rate minus a 30% offset. For someone on the 30% marginal rate, the effective tax on withdrawal is 0% (30% - 30% offset), compared to 30% if they'd saved outside super. The net result is a faster path to a deposit.
To apply, you request a FHSS determination from the ATO (to check your eligible amount), then request a release of funds. You must sign a contract to purchase or construct a home within 12 months of the release (extensions available up to a further 12 months). The property must be a residential premises you intend to live in as soon as practicable, and you must occupy it for at least 6 of the first 12 months. You cannot have previously owned property in Australia (including investment property).
How it works
The First Home Super Saver Scheme lets first home buyers build a deposit inside super to take advantage of super's lower tax rates rather than saving in a regular bank account. You can make voluntary concessional or non-concessional contributions of up to $15,000 a year and $50,000 in total under the scheme, taxed at 15% inside the fund rather than at your marginal rate on the way in.
To use it, you request a determination from the ATO to confirm your eligible amount, then request a release once you're ready to buy — the concessional portion is taxed again on release, but at your marginal rate minus a 30% offset, which for someone on a 30% marginal rate works out to no further tax at all on that portion.
There are firm conditions attached: you must sign a contract to buy or build within 12 months of the release, with a possible extension of a further 12 months, occupy the home for at least 6 of the first 12 months, and you must never have owned property in Australia before, including an investment property — this last condition is the eligibility trap people miss most often. FHSS contributions still count toward your ordinary concessional or non-concessional caps as well as the scheme's own $15,000/$50,000 limits, so both sets of limits apply at once.
Example: FHSS tax saving on a $10,000 deposit contribution
Someone on a 30% marginal tax rate salary-sacrifices $10,000 into super under the FHSS. Inside super it's taxed at 15% ($1,500), leaving $8,500 growing toward the deposit, rather than the $7,000 that would have been left if it had been taxed at 30% outside super.
When it's released for a home purchase, that concessional amount is taxed again at the marginal rate minus a 30% offset — 30% minus 30% comes to nil, so no further tax applies on the way out, leaving the full $8,500 (plus any deemed earnings) available toward the deposit.
Calculate it yourself
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Concessional Contributions
Before-tax super contributions taxed at 15% inside the fund, including employer SG, salary sacrifice, and personal deductible contributions.
Non-Concessional Contributions
After-tax super contributions that are not taxed inside the fund, with an annual cap of $130,000 (2026-27).
Salary Sacrifice
An arrangement where you direct part of your pre-tax salary into super (or other benefits), reducing your taxable income.
Stamp Duty (Transfer Duty)
A state/territory tax on property purchases, calculated as a percentage of the property value — rates vary by jurisdiction.
First Home Owner Grant (FHOG)
A state/territory government grant for first home buyers, typically $10,000–$30,000 for new homes, with varying eligibility criteria.