First Home Super Saver Scheme (FHSS)

First home super saver scheme could be a great way in saving thousands of dollars towards your dream home.

The first home super saver (FHSS) scheme allows you to make personal voluntary contributions into your super fund to help you save for your first home.

Concessional contributions are taxed at only 15%, which is usually less than your marginal income tax rate. Assessable FHSS amounts also benefit from a 30% FHSS tax offset.

Using the FHSS scheme, you can contribute up to a maximum of $15,000 in any one financial year, up to a maximum of $50,000 across all years.

Considering the annual and overall limits, you can withdraw:

100% of your eligible personal voluntary contributions you haven't claimed a tax deduction for (non-concessional contributions)

85% of your eligible salary sacrifice contributions (concessional contributions)

85% of eligible personal voluntary super contributions you have claimed a tax deduction for (concessional contributions)

You will also be able to access an amount of associated earnings on both concessional and non-concessional contributions.

You don't need to be an Australian citizen or Australian resident for tax purposes to use the FHSS scheme.

It's important you request a FHSS determination before ownership of any real property transfers to you (generally following settlement of a property contract).

When you're ready to use the funds to help buy a home in Australia, you can submit a request to release your FHSS amount plus associated earnings.

The content on this page explains the basics of the FHSS.

For technical information on the FHSS scheme, see Guidance Note GN 2024/1 First home super saver scheme.

For more information we have guidance material, see Taxation Ruling TR 2024/4 First home super saver scheme.

Example: salary sacrifice and the annual $15,000 limit

In the 2023–2024 financial year, Mary made $25,000 salary sacrifice (concessional contributions). Because of the annual limit, only $15,000 will count as eligible FHSS contributions and only 85% of that $15,000 ($12,750) will count towards the calculation of the maximum releasable amount.

In this example, the remaining $10,000 salary sacrifice contributions cannot be counted towards her maximum releasable amount.

Source: Australian Taxation Office

https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/withdrawing-and-using-your-super/early-access-to-super/first-home-super-saver-scheme