First Home Super Saver Scheme (FHSSS)
The basic mechanics
Contribute: voluntary pre-tax contributions via salary sacrifice, or voluntary after-tax contributions. Annual contribution cap: $15,000. Total cap across the scheme: $50,000.
Invest: the contributions sit in your super fund, invested with your super’s chosen strategy.
Withdraw: once ready to buy, apply to the ATO for a “determination” of your releasable amount. Receive funds (usually within 15-20 business days). Use within 12 months (or 24 months with extension).
Purchase: contract the property purchase with FHSSS funds as part of your deposit.
Why the tax math works
Pre-tax contribution (salary sacrifice): taxed at 15% entering super. If your marginal rate is 32.5% or 37%, you save 17.5-22 percentage points of tax on the contribution.
Withdrawal: taxed at (your marginal rate) minus 30 percentage points, with a tax offset. For a 32.5% marginal rate borrower, withdrawal tax is effectively 2.5%.
Net effect: contribute $15,000 pre-tax, receive $14,625 at withdrawal (after tax) vs $10,125 if you had taken the $15,000 as salary and saved it in a regular account (assuming 32.5% marginal). That’s ~44% more spendable savings after 12 months.
For higher earners
Someone on a 37% marginal rate benefits more. Someone on a 45% marginal rate benefits even more. For 32.5% or below, the advantage is still positive but smaller.
The interaction with employer super contributions
FHSSS contributions must be voluntary - they are on top of your employer’s mandatory 11% (or 11.5% from July 2025, stepping to 12% from July 2025). Your employer’s contribution is not included in the scheme.
The $50k total cap gotcha
The $50,000 cap is lifetime, not per property. Once you’ve contributed $50k (across multiple years), you cannot add more even if your circumstances change. Plan accordingly.
How couples use the scheme
Each applicant has their own $50k cap. A couple can collectively access $100k in FHSSS withdrawals to fund a first home deposit.
The withdrawal application
- Apply via the ATO once you are ready to buy (or up to 14 days after signing a contract)
- The ATO processes the determination and pays the amount to your bank account
- You must notify the ATO of your home purchase within 28 days of settlement
What disqualifies you
- You have previously owned residential property in Australia (first home buyer test)
- You applied to withdraw previously but didn’t follow through with a purchase - you can retry but there are re-application complications
Why it’s under-used
The scheme requires setup 12+ months before purchase. First home buyers who decide to buy this year, with no prior salary sacrifice setup, can’t realistically use FHSSS meaningfully - you’re limited to one $15k contribution in the current year, with a 12-month window.
The scheme works best when started 2-3 years before intended purchase. Set up salary sacrifice to contribute $15k/year via your employer. Over 3 years, you accumulate $45k + earnings, withdraw with favourable tax, and boost your deposit.
For first home buyers on $100k+ income planning to buy in 2027-2028, FHSSS set up today is one of the highest-value single moves available.