First Home Super Saver Scheme: Using super to buy your first home
The First Home Super Saver Scheme (FHSS scheme or FSSSS) lets you make voluntary contributions to your super and withdraw them later for a first home deposit. Unlike regular superannuation contributions that are locked away until retirement, FHSSS funds are accessible for first homebuyers, while still benefiting from tax advantages.
Looking to buy your first home and ready to learn more? Let’s dig in
How does the First Home Super Saver Scheme work?
First things first. You may have heard that you can contribute extra money to your super, over and above what your employer contributes. These are voluntary contributions, and they offer tax advantages depending on the amount you contribute, with certain limits and thresholds in place.
You can read more about how contributions work here, but the voluntary contributions we’ll focus on are called voluntary concessional contributions because they give you the biggest tax breaks and make them especially useful for taking advantage of this scheme.
Everyone is entitled to $30,000 in concessional contributions per year, but this includes the involuntary concessional contributions your employer contributes. So if you get $7,000 from your employer, you can put in an additional $23,000 in voluntary concessional contributions of your own—whether or not you end up using them for your first home.
If you meet the FHSSS requirements, you can withdraw up to $50,000 of these voluntary contributions (plus any earnings) to help buy your first home.
FHSS scheme key details
Below is a simple breakdown of how the scheme works:
- Only $15,000 per year of your voluntary contributions counts toward the FHSS scheme, even if you contribute more. The involuntary contributions from your employer aren’t eligible.
- The total you can withdraw is capped at $50,000, plus any earnings.
- You can only make one withdrawal request—there’s no option to withdraw multiple times.
- You can only make one withdrawal request. Whether you withdraw the full eligible amount or less, you won’t be able to access the rest later, and the amount you take out is still subject to the $15,000 per year limit.
- You must apply for a special release to access your FHSS funds (we’ll explain how later).
- Once you withdraw, you have 12 months to sign a contract to buy or build your first home.
Review these criteria carefully to ensure you qualify. In the next section, we’ll explain how to apply for a release of your FHSSS funds so you can use it for your first home loan.
Who is eligible for the First Home Super Saver Scheme?
To use the FHSS scheme, you must meet all of the following conditions:
- Age. You must be 18 years or older when requesting a FHSS determination, although eligible contributions made before you turn 18 are eligible for withdrawal.
- First home buyer status. You must be a first home buyer, meaning you’ve never owned property in Australia, including investment property, commercial property or land.
- Property title. Your name must appear on the title of the property you purchase.
- One-time use. You can only use the FHSS scheme once. Even if you withdraw less than your full eligible amount, you won’t be able to access the scheme again.
Review these criteria carefully to ensure you qualify. In the next section, we’ll explain how to apply for a release of your FHSSS funds.
How to apply for the First Home Super Saver Scheme
Now that you know you qualify and have an idea of how much you can withdraw, it's time to get your funds released. Everything happens online via myGov, so make sure your account is ready before you start.
- Request your FHSS determination. Through myGov and the ATO’s online services, you officially ask them to calculate how much you can withdraw based on the voluntary contributions (and any earnings) you’ve made. This determination is an official figure, and you need it before doing anything else.
- Apply for a release. Once you have that determination, you lodge a single release request (also via myGov). Whatever you decide to withdraw—whether it’s the entire eligible amount or just part of it—this is your only shot under FHSSS.
- Wait for the funds. The ATO instructs your super fund to release the money. It’s first paid to the ATO, which applies tax at your marginal rate (with the 30% offset), then transfers the net amount to you. This can take up to about 25 business days.
- Use the funds within 12 months. Once you have the money, you have a year to sign a contract to buy or build your first home. If you miss that deadline, you can either recontribute the money to super or keep it and pay an extra 20% tax
FHSS Scheme vs First Home Owner Grant: What’s the difference?
If you're a first home buyer, you’re probably on the lookout for every bit of free (or low-tax) cash you can snag to ease the load. The good news is that if you qualify, you might be able to tap into two different schemes at the same time—each with its own perks. One lets you use funds you've already put away in your super, and the other gives you a little extra cash from your state or territory. Here’s how they differ:
| Feature | FHSS Scheme | First Home Owner Grant |
|---|---|---|
| Source of Funds | Money from your voluntary super contributions (plus any earnings) | A cash bonus paid directly by your state or territory |
| Impact on Savings | Uses your own savings, which could affect your retirement funds | Extra cash that doesn’t touch your super |
| Eligibility & Rules | For first home buyers with eligible contributions; relatively straightforward | Comes with its own conditions, like property value limits and location rules |
| How to Apply | Apply online via myGov using ATO services | Apply through your local government, usually after buying or building your home |
| Using Together? | Yes – you can usually combine the benefits of both schemes | Yes – they work independently, so you can often use both at once |
In a nutshell, the FHSS Scheme helps you access money you’ve already saved up, while the First Home Owner Grant gives you a government cash boost.
With both in your corner, you might just get that deposit looking a whole lot more manageable. Times are tough out there, so if you qualify, it pays to take advantage of every opportunity—get cracking and see how these schemes can work for you!
Pros and cons of using FHSS Scheme for a home deposit
Sometimes, you might want to give your first-home deposit a little push using money you’ve already set aside in super. If that’s on your mind, the FHSS scheme could be worth considering. It has some appealing perks, and a few catch‑22s, so it’s helpful to see how those balance out.
| Pros | Cons |
|---|---|
| ✅ Taps into funds already earmarked for your deposit, plus any gains they’ve earned. | ❌ Typically requires at least four years of regular voluntary contributions, so it’s not a quick fix if you’re in a rush. |
| ✅ Concessional tax treatment may leave you with more money than if you’d saved in an ordinary bank account. | ❌ If you’re ready to buy right now, the built‑in waiting period might hold you back. |
| ✅ Can give your deposit a stronger foundation by the time you’re set to purchase. | ❌ You’ll need a dependable income—or some other resource—to keep adding these contributions. |
| ✅ Straightforward online application through myGov. | ❌ You only have one chance to withdraw, making timing a bigger factor. |
| ✅ Can sit side‑by‑side with other support options to round out your strategy. | ❌ A strict 12‑month deadline applies once you get your funds, so missing that window can mean having to return the money or pay back a tax benefit. |
Bottom line
In the end, FHSSS provides a way to draw on super contributions with a potential tax advantage, which can be handy if you’re willing to wait and you have a steady approach to saving. At the same time, it requires patience and a certain amount of planning—one withdrawal window, firm deadlines, and a gradual buildup of contributions. Weigh these factors against your home‑buying timeline, and see if the FHSS Scheme gives you the head start you need or if a different path might fit better.
And since you can also withdraw the earnings from the FHSSS contributions, you’ll want a fund that delivers good results. So why not check out our 2025 Mozo Experts Choice Awards for Superannuation, where our experts have identified the best performing and lowest fee funds across a variety of categories, including for those likely to be in the market for their first home: Millennials and Gen Z.
FAQs about the First Home Super Saver Scheme
Does FHSSS affect my home loan application?
Lenders generally like deposits that show you’ve saved consistently, regardless of whether that saving came from your ordinary bank account or from FHSSS. Just bear in mind that once you apply to get your FHSS Scheme funds, it can take between 15 and 25 business days for the money to actually arrive in your bank.
So if you’re juggling settlement dates or payment deadlines for your home loan, that delay can matter. It’s best to ensure you’ll have the funds available when you need to show proof of your deposit or pay it in.
Can I withdraw my other super early to pay for my first home?
No. FHSSS only lets you take out voluntary contributions that you personally added. Your employer’s standard super guarantee, any government co‑contributions, and other existing super balances must stay in the fund until you meet the usual conditions for release—like reaching the age at which you can access your retirement savings.
However, there have been proposals to introduce reforms that would allow you to access your normal super funds for your first home, but at this stage, they are still just proposals.
Can I use non‑concessional contributions?
Yes, non‑concessional contributions, made from your after‑tax income, do receive certain tax benefits inside super, just not the same ones concessional contributions get. Still, if you’ve already reached your concessional limit with funds not eligible for the FSSSS (such as employer contributions), and want to add more, non‑concessional funds can boost your FHSSS total.
What are the tax benefits and implications?
Concessional contributions are taxed at 15% on their way into super, and any returns they earn are also taxed—up to 15%—while invested. Down the line, when you withdraw via FHSSS, that sum is included in your taxable income at your usual marginal rate, but you get a 30% offset to help lower the final bill. Many find this arrangement easier on their wallet than just saving in a normal account, where investment earnings often get taxed at their full marginal rate.
What is the financial hardship exception?
FHSS is typically for individuals who haven’t owned property before. Yet there’s a carve‑out if you used to own a place but lost it due to serious hardship—bankruptcy, a breakup that forced a sale, or a natural disaster are some examples. You’ll have to give the ATO solid proof of your circumstances, but if they accept your situation, you can still apply for FHSS despite having owned property in the past.
How long does it take to get my FHSS funds after applying?
Once you lodge your request through myGov, the money usually arrives in about 15–25 business days. If your property purchase involves tight timelines—maybe an auction date or settlement that’s right around the corner—be sure to account for that wait. Having your deposit short a few thousand dollars at the eleventh hour is no fun.
Can I use FHSS if I’m buying with someone who isn’t a first home buyer?
Yes. Your personal eligibility stands on its own: if you qualify for FHSS as a first home buyer, you can tap into it regardless of who else is on the contract. Just be aware that if you receive Centrelink benefits, an FHSS withdrawal might affect how those are calculated. It’s worth looking into if you rely on any government income support.
Can I use FHSS if I’m buying with another first home buyer?
Yes. Each person’s eligibility is looked at individually, so if two or more buyers all meet the criteria, they can each withdraw their own FHSS funds and pool the money into a single deposit. If a friend or partner doesn’t qualify, that won’t block the rest of you from using your FHSS amounts. It’s a flexible arrangement that can make a real difference when multiple first home buyers team up.
What happens if my FHSS release amount is lower than expected?
The ATO calculates your withdrawal based on how many of your voluntary contributions actually qualify, plus the earnings those contributions generated inside super. If you get back less than you hoped, it may be that some contributions weren’t eligible or the investment returns were underwhelming. Because you can only make one FHSS withdrawal, take time to confirm your figures before submitting your request. If you still need more than you have, you can continue adding voluntary contributions and wait until the next financial year to make another withdrawal.
Do I need to earmark contributions as FHSS in advance?
No. There’s no special tag or label required. As long as they’re voluntary contributions and they stay within the annual limits, you can opt to count them toward FHSS later on. This flexibility means you don’t have to decide right away—you can see how your finances develop and choose FHSS when it’s the right time.
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