First Home Super Saver Scheme (FHSSS) 2026: How It Works
The First Home Super Saver Scheme lets you save for a house deposit inside your super fund, taking advantage of superannuation's lower tax rate to build your savings faster. Here's exactly how much you can contribute, how withdrawals work, and what it means for your tax.
Important: This article is general information only and does not constitute financial or tax advice. FHSSS contribution caps and tax treatment are set by the Australian Taxation Office and are subject to change. Please seek independent financial and tax advice, and speak with a mortgage broker, before making decisions.
What Is the First Home Super Saver Scheme?
The First Home Super Saver Scheme (FHSSS) allows first home buyers to make voluntary contributions into their superannuation fund, then withdraw those contributions (plus associated earnings) to help fund a deposit. Because super is taxed at a lower rate than most people's marginal income tax rate, saving through FHSSS can grow your deposit faster than a standard savings account.
Key takeaway: Eligible individuals can withdraw up to $50,000 in voluntary contributions (plus earnings) under FHSSS — for a couple buying together, that can mean up to $100,000 combined.
How Much Can You Save Under FHSSS?
| Detail | Amount / Limit |
|---|---|
| Maximum voluntary contributions eligible for release | $50,000 per person |
| Annual voluntary contribution cap (counted towards FHSSS) | $15,000 per financial year |
| Couple buying together | Up to $100,000 combined (if both eligible) |
Source: Australian Taxation Office (ATO). Caps are reviewed periodically — confirm current limits before contributing.
Types of Contributions That Count
Not all super contributions are eligible for FHSSS release. Contributions that count include:
- Salary sacrifice contributions — arranged with your employer, taxed at 15% instead of your marginal rate
- Voluntary (after-tax) contributions — personal contributions you make yourself, which may be tax-deductible
Employer compulsory contributions (like standard superannuation guarantee payments) are not eligible to be withdrawn under FHSSS, even though they still count toward your overall super balance.
Important: Only contributions made within existing super contribution caps are eligible. Contributing more than the annual cap to chase a bigger FHSSS release can trigger extra tax — plan contributions carefully, ideally with professional advice.
How Withdrawals Work
- Request a determination from the ATO — before signing a contract, request an FHSSS determination to confirm your eligible release amount.
- Apply for release — once you're ready to buy, apply to the ATO to release your eligible contributions and associated earnings.
- Receive the funds — the ATO releases the withdrawal (less applicable tax) directly to you, typically within a few weeks.
- Sign your contract within the required timeframe — you generally need to sign a contract to purchase or construct your home within 12 months of requesting the release (extensions may be available).
Is FHSSS Withdrawal Taxed?
Withdrawals are taxed at your marginal tax rate, less a 30% tax offset. Because your contributions were taxed at only 15% going into super (for salary sacrifice), and the earnings within super are also taxed concessionally, the overall effect is usually a lower total tax burden than saving the same amount outside super — though the exact benefit depends on your personal tax rate.
FHSSS vs Regular Savings
| FHSSS | Regular Savings Account | |
|---|---|---|
| Tax on contributions | 15% (salary sacrifice) | Your marginal tax rate |
| Tax on earnings | Concessional (up to 15%) | Your marginal tax rate |
| Access to funds | Locked until eligible withdrawal | Accessible anytime |
| Best for | Disciplined, longer-term saving | Flexibility, shorter timelines |
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How Be Smart Finance Can Help
Combining FHSSS with your loan application timing matters — get it wrong and you could delay your purchase. We can help you:
- Understand how much you could realistically save under FHSSS
- Time your contribution and release requests around your purchase timeline
- See how FHSSS savings fit alongside grants, concessions and your loan pre-approval
Frequently Asked Questions
How much can I withdraw under FHSSS?
Up to $50,000 in eligible voluntary contributions per person, plus associated earnings — up to $100,000 combined for a couple.
Are employer super contributions eligible for FHSSS?
No. Only voluntary contributions — salary sacrifice or personal after-tax contributions — are eligible for release under FHSSS.
Is my FHSSS withdrawal taxed?
Yes, at your marginal tax rate less a 30% tax offset — generally still favourable compared to saving the same amount outside super.
Can I combine FHSSS with the First Home Guarantee or FHOG?
Yes. FHSSS relates to how you save your deposit — it can generally be used alongside the First Home Owners Grant, stamp duty concessions and the First Home Guarantee, since each addresses a different part of the purchase.
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