First Home Super Saver Scheme (FHSSS) 2026: Use Super for Your House Deposit
Withdraw up to $50,000 from super for your first home deposit under the FHSSS. How voluntary contributions work, the tax savings, and the step-by-step withdrawal process.
What is the First Home Super Saver Scheme?
The First Home Super Saver Scheme (FHSSS) allows first home buyers to save for a house deposit inside their super fund, taking advantage of super's lower tax rate. You make voluntary contributions to your super (either salary sacrifice or personal after-tax contributions), and when you are ready to buy your first home, you apply to withdraw those voluntary contributions plus deemed earnings. The maximum you can withdraw is $50,000 in total contributions (plus associated earnings calculated at the shortfall interest charge rate). The key advantage is tax: salary sacrifice contributions are taxed at only 15% going in (instead of your marginal rate), and when withdrawn, the concessional portion is taxed at your marginal rate minus a 30% offset. For someone on a $80,000 salary, this can save approximately $6,800 in tax over two years of maximum contributions compared to saving in a regular bank account.
How much can you contribute and withdraw?
You can contribute up to $15,000 per financial year in voluntary contributions that count toward the FHSSS, with a total cap of $50,000 across all years. Both concessional (salary sacrifice or personal deductible) and non-concessional (after-tax) contributions count, but they have different tax treatment on withdrawal. These FHSSS contributions still count toward your overall super contribution caps ($30,000 concessional, $120,000 non-concessional). On withdrawal, you receive the contributed amounts plus deemed earnings calculated using the shortfall interest charge (SIC) rate — this is not the actual investment return your super fund earned, but a standardised rate set by the ATO (typically around 4-5% per annum). The total withdrawal amount is your contributions plus deemed earnings minus applicable tax. For concessional contributions, the withdrawal is taxed at your marginal rate with a 30% offset. For non-concessional contributions, the withdrawal is not taxed (you already paid tax on that money).
Step-by-step: how to use the FHSSS
Step 1: Start making voluntary contributions. You can salary sacrifice through your employer or make personal contributions and claim a tax deduction (lodge a notice of intent with your fund first). Keep within the $15,000 per year and $50,000 total limits. Step 2: When ready to buy, apply for a FHSSS determination from the ATO through myGov. This tells you the maximum amount you can release. You do not need to have found a property yet. Step 3: Once you have signed a contract to buy (or are ready to request release), apply for a FHSSS release through myGov. The ATO will issue a release authority to your super fund. Step 4: Your fund pays the amount to the ATO, which withholds tax and sends you the net amount. This typically takes 15-25 business days. Step 5: Use the money for your home purchase. You must sign a contract to buy or build within 12 months of requesting the release (extensions available for up to 24 months in total). If you do not buy within the timeframe, you can either recontribute the amount to super or pay FHSSS tax on the amount.
Who is eligible?
To use the FHSSS, you must be 18 years or older, have never owned property in Australia (including investment property), have not previously used the FHSSS to purchase a home, and intend to live in the property you buy for at least 6 of the first 12 months you own it (it must become your home, not an investment). Couples can each use their own FHSSS entitlement — so a couple buying together could withdraw up to $100,000 (plus earnings) combined. You do not need to be a first home buyer in the traditional sense of never having owned a home globally — the test is specifically about property in Australia. You must also have made eligible voluntary contributions (your employer's mandatory SG contributions cannot be withdrawn under the FHSSS). The property you buy must be a 'real' property — vacant land is eligible if you intend to build, but houseboats, motor homes, and rights to shares in a company title property are generally not eligible.
Is the FHSSS worth it? A worked example
Example: Sarah earns $85,000 and salary sacrifices $15,000 per year into super for two years ($30,000 total contributions). Without FHSSS: if she saved $15,000/year in a bank account, she would pay tax at her 34.5% marginal rate on earnings, netting about $28,400 after two years (at 4% interest). With FHSSS: the $15,000 annual salary sacrifice is taxed at only 15% going in ($2,250 in tax vs ~$5,175 at her marginal rate), saving her $2,925 per year in tax. Over two years, her super contributions total $25,500 after 15% tax, plus deemed earnings of approximately $1,800. On withdrawal, tax is applied at her marginal rate minus a 30% offset. Her net withdrawal is approximately $30,800. Net benefit: approximately $2,400 more than regular saving, plus she paid lower tax during the two years. The benefit increases at higher marginal tax rates. For someone in the 37% or 45% bracket, the savings are substantially larger. The FHSSS is almost always worth using if you are planning to buy within 2-5 years.
Try these free tools
Official resources
General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
Related articles
The Australian super guarantee rate for 2025-26 is 12%, effective 1 July 2025. Check your employer is paying correctly with our free calculator. ATO rates, OTE rules, and deadlines explained.
Minimum Wage Australia 2026: $24.10 Per Hour — Current Rate & Casual LoadingAustralia's national minimum wage is $24.10/hr ($915.90/week) for 2025-26. Casual rate with 25% loading: $30.13/hr. Free calculator to check if you're being underpaid.
Penalty Rates Australia 2026: Saturday, Sunday & Public Holiday RatesWhat are your weekend and public holiday penalty rates? Lookup by award — retail, hospitality, fast food & more. Free calculator shows exactly what you should earn per hour.