First Home Super Saver Scheme: How to Save Your Deposit Faster

A first-home deposit can feel like a very large number that refuses to get any smaller. The First Home Super Saver Scheme (FHSS) may help eligible buyers build a deposit using voluntary super contributions, with potential tax advantages along the way.

But it isn’t a shortcut that suits everyone. Money put into super is generally less accessible than money in a savings account, and timing the release matters. Here’s how the scheme works, what the caps mean, and what to check before you act.

The rules and figures below reflect information available on 21 October 2026. Check the latest ATO guidance before making a decision.

What is the First Home Super Saver Scheme?

The FHSS scheme lets eligible first-home buyers make voluntary contributions to super and later apply to withdraw eligible amounts to buy or build a home in Australia.

You can contribute through salary sacrifice, a personal contribution you claim as a tax deduction, or an after-tax personal contribution. Compulsory employer contributions generally don’t qualify.

The scheme has two key limits for each person:

• You can count up to $15,000 of eligible voluntary contributions per financial year.
• You can count up to $50,000 of eligible voluntary contributions across your lifetime.

These are contribution limits, not a promise that the same amount will arrive in your bank account. The release calculation depends on the type of contribution, and associated earnings are added using an ATO formula. For concessional contributions, the scheme counts 85% of the eligible contribution towards the maximum release calculation. For eligible after-tax contributions, it counts 100%. The ATO adds associated earnings to the release amount.

If two eligible buyers are purchasing together, each can use their own FHSS limits. In theory, a couple could each nominate up to $50,000 of eligible contributions, subject to the rules. It’s still calculated individually, not as one shared couple’s allowance.

For the detailed rules, see the ATO’s guide to FHSS release amounts.

How voluntary contributions work

There are two common ways to contribute:

1. Concessional contributions: salary-sacrifice payments or personal contributions you claim as a tax deduction. These generally face 15% contributions tax in the fund and count towards your concessional contributions cap.
2. Non-concessional contributions: personal contributions from after-tax income for which you don’t claim a deduction. These generally aren’t taxed again when they enter the fund and count towards your non-concessional contributions cap.

The FHSS limits sit alongside the usual contribution caps. So a contribution may count towards both an FHSS limit and an ordinary super cap. Check your employer contributions and other voluntary payments before adding more.

You can read about eligible contributions on the ATO’s FHSS contributions page.

A worked example: what might the tax difference look like?

Let’s say Maya earns $100,000 a year and arranges to salary sacrifice $10,000 into super for a future first-home deposit. For a simple illustration, assume her marginal income tax rate plus Medicare levy is 32%, and ignore investment changes, associated earnings and other tax considerations.

If Maya received that $10,000 as salary, she might keep about $6,800 after income tax. Salary sacrificing it instead means the contribution is generally taxed at 15% in her fund, leaving about $8,500 in super.

For FHSS purposes, 85% of the eligible $10,000 concessional contribution counts towards the release calculation: $8,500, plus associated earnings. The concessional amount released is assessable income, but an FHSS tax offset applies. In this simplified example, the tax on that assessable amount may be reduced by the 30% offset, with the final amount depending on Maya’s tax position.

The point isn’t that every buyer will get the same result. It’s that the difference between your income tax rate and the tax treatment of super may make eligible contributions worth investigating. Your actual outcome can change with your income, contribution history, tax position and any additional tax that applies.

Are you eligible?

Generally, you need to:

• Be at least 18 when you request an FHSS determination.
• Have never owned Australian real property, including an investment property or vacant land. The ATO can consider an exception if you have suffered financial hardship.
• Intend to buy or build a residential property in Australia, have your name on the title and occupy it as your home.
• Intend to live in the home as soon as practicable and occupy it for at least six months of the first 12 months when occupation is practicable.

Eligibility is assessed for each person. A partner’s previous property ownership does not automatically disqualify you, but you should check your own circumstances against the ATO’s FHSS eligibility rules.

Timing: plan the release before signing

The FHSS scheme has deadlines, so don’t leave the paperwork until the removalists are booked.

A sensible sequence is:

1. Check your eligibility and contributions. Review your super account and ATO records.
2. Request an FHSS determination from the ATO. This tells you the amount you may be eligible to release.
3. Request the release at the right time. You generally need to request it before signing a purchase or construction contract, or within the permitted period after signing. For determinations made on or after 15 September 2024, the ATO generally requires a post-contract release request within 90 days.
4. Meet the purchase deadline. After requesting a release, you generally have 12 months to enter a contract to buy or build. The ATO may allow an extension of up to a further 12 months.
5. Complete the follow-up. You must tell the ATO what you did with the released amount. If you don’t meet the purchase and occupancy requirements, you may need to recontribute an amount or pay FHSS tax.

Super funds and the ATO need time to process requests. Start early and check the current ATO release steps and timeframes.

FHSS or saving outside super?

The FHSS scheme may suit you if you have a stable income, can set money aside consistently and are comfortable with the access rules. Salary sacrifice can also make contributions easier to automate.

Saving outside super can make more sense if you need flexibility, expect to buy soon, or want your deposit available without a release process. Your bank savings may earn less than investments over some periods, but the money is accessible and its value won’t move with super investment markets.

There’s no prize for choosing the more complicated option. Compare the likely tax benefit with reduced access, contribution caps, your time frame and your need for an emergency buffer. A deposit plan should not leave you without cash for an unexpected bill.

Common pitfalls to avoid

• Assuming every super contribution qualifies. Compulsory employer contributions generally don’t count.
• Confusing the contribution cap with cash released. The maximum is based on FHSS calculations, not simply the total you contributed.
• Ignoring other contribution caps. FHSS limits don’t replace ordinary super caps.
• Requesting release too late. Check the ATO process before signing a contract.
• Using every spare dollar for the deposit. Keep enough accessible savings for emergencies and purchase costs.
• Treating the tax example as a personal forecast. Your tax and release outcome may differ.

Build a deposit plan that fits your whole financial picture

The FHSS scheme is one tool, not the whole plan. Start by estimating when you hope to buy, how much deposit you’ll need and what you can comfortably save each pay. Then compare a mix of super contributions and accessible savings.

Advice360’s Wealth Strategy & Accumulation service can help you consider a first-home goal alongside your broader finances. You can also use the Grow Your Super calculator to explore contribution scenarios. A calculator can help you test assumptions, but it can’t confirm your personal eligibility or tax outcome.

We're more than happy to have a complimentary chat about your first home plan. Just reach out to our team and we'll find a time that suits you.

Important information: This article contains general information only and does not consider your personal objectives, financial situation or needs. It is not personal financial, tax or legal advice. FHSS eligibility, contribution caps and tax outcomes depend on your circumstances and current rules. Consider the relevant ATO guidance and seek professional advice before making decisions.