First Home Buyer Guide
First Home Super Saver Scheme 2026: using your super to build a home deposit
The First Home Super Saver Scheme (FHSS) lets eligible first home buyers make voluntary contributions into their superannuation fund and then withdraw those contributions (plus associated earnings) to use as a home deposit. Because super is taxed at a concessional rate, saving your deposit inside super can be more tax-effective than saving in a standard bank account for eligible buyers. The scheme is administered by the Australian Taxation Office (ATO). This guide covers how it works, the limits, and what Brisbane buyers should know, always verify current figures and your eligibility directly with the ATO before making financial decisions.
How the First Home Super Saver Scheme works
The FHSS works in two stages. First, you make voluntary contributions into your super fund over time, these can be concessional (before-tax, such as salary sacrifice) or non-concessional (after-tax). Second, when you are ready to buy, you apply to the ATO for a determination of how much you can withdraw. The ATO releases the eligible amount directly to you, and you use it as part of your home deposit. The key advantage is that concessional contributions are taxed at 15% inside super instead of your marginal income tax rate, which can be significantly lower for many buyers.
How much can you contribute and withdraw?
As at the last review date, the FHSS maximum release amount is $50,000 per person (from contributions made from 1 July 2017 onwards). You can contribute up to $15,000 per financial year toward the scheme. These limits are set by the ATO and may be adjusted. The actual amount you receive will be your eligible contributions plus associated earnings, minus a withholding tax amount, the ATO calculates this when you apply. Check current limits directly with the ATO or ask us.
What contributions count toward the FHSS?
Only voluntary contributions count, your employer's compulsory super guarantee (SG) contributions do not count toward the FHSS. Eligible voluntary contributions include:
- Concessional (before-tax) contributions such as salary sacrifice arrangements through your employer.
- Non-concessional (after-tax) personal contributions you make directly to your fund.
- Contributions must be within the standard super contribution caps, the FHSS does not override them.
Who is eligible for the FHSS?
Eligibility conditions are set by the ATO. As at the last review date, the following generally apply:
- You are 18 years of age or over at the time you request a release.
- You have never previously owned property in Australia (including investment property, commercial property, or a home).
- You have not previously made a FHSS release request.
- You intend to occupy the property as your principal place of residence for at least 6 months in the first 12 months after it becomes practical to do so.
- You must sign a contract to buy or build a residential property within 12 months of requesting the release (with the possibility of a 12-month extension).
How to apply for a FHSS release
When you are ready to buy, log in to MyGov and apply through the ATO for a FHSS determination. The ATO will calculate your maximum releasable amount. Once you have the determination, you request the actual release. The ATO will instruct your super fund to release the funds, withhold tax, and pay the net amount to you. The process can take several weeks, factor this into your settlement timeline. We help you plan when to apply so the funds arrive when you need them.
Can I use the FHSS with the First Home Guarantee or QLD FHOG?
Yes. The FHSS can be used alongside both the federal First Home Guarantee (FHBG) and the Queensland First Home Owner Grant (FHOG), subject to each scheme's eligibility conditions. The FHSS withdrawal can count toward your deposit under the FHBG, though lender policy on genuine savings requirements varies. We check how all three interact for your specific situation.
Tax on FHSS withdrawals
FHSS amounts are included in your assessable income in the year you receive the release, but you receive a 30% tax offset on the assessable FHSS amount. The ATO withholds tax at a flat rate from the release and reconciles this in your tax return. The net effect is generally still tax-advantaged compared to saving in a bank account for buyers on a marginal rate above 15%, but the exact benefit depends on your income and tax position. Speak with your accountant for your specific tax outcome.
Frequently asked questions
How long does it take to save a deposit using the FHSS?
It depends on how much you contribute each year and your target deposit amount. With $15,000 per year in eligible contributions, you could reach the $50,000 maximum in just over 3 years, faster if you start with an existing super balance of eligible voluntary contributions. We help you map a realistic timeline in your first call.
Can both partners in a couple use the FHSS?
Yes. Each eligible person can make their own FHSS contributions and request their own release, so a couple could potentially combine up to $100,000 from the scheme (subject to each person's contribution history and the current cap). Each person must meet the individual eligibility conditions.
What happens if I don't end up buying a property?
If you receive a FHSS release but don't sign a contract to purchase a property within the required timeframe, you generally must either return the funds to super or pay additional tax. The ATO rules on this are specific, confirm directly with the ATO if your plans change.
Does my existing super balance count toward the FHSS?
No. Only voluntary contributions made from 1 July 2017 onwards count toward the FHSS. Your existing employer SG contributions and any balance before that date do not count.
Can the FHSS be used for an investment property?
No. The property must be your principal place of residence. Investment purchases are not eligible.
Will lenders accept my FHSS withdrawal as genuine savings?
Policy varies by lender. Some lenders accept FHSS withdrawals as genuine savings; others may require additional evidence that the contributions were voluntary and held for a minimum period. We check lender policy for your deposit structure in your assessment.