FIRST HOME SUPER SAVER SCHEME
FIRST HOME SUPER SAVER SCHEME QUESTIONS
Here to answer all of your questions
Thinking about using your super to help buy your first home?
The First Home Super Saver (FHSS) Scheme can be a smart way to boost your deposit by taking advantage of super’s lower tax rates. But before you get started, it’s important to understand how it works, who’s eligible, and what rules apply.
Here are 10 common questions we get from first home buyers about the FHSS Scheme — and the answers you need to know.
What is the First Home Super Saver Scheme?
The FHSS Scheme allows eligible first home buyers to save for a home deposit inside their superannuation fund, taking advantage of super’s lower tax rates.
How does it work?
You make voluntary contributions into your super fund (before or after tax). Later, you can apply to withdraw these contributions plus associated earnings to help fund your first home deposit.
How much can I contribute?
You can contribute up to $15,000 per financial year and a maximum of $50,000 in total under the scheme.
What are the tax benefits?
Salary-sacrifice contributions (before tax) are taxed at 15% in super, which is usually lower than your marginal tax rate. This can help you save more compared to saving outside super.
Who is eligible?
You must:
-
Be aged 18 or over
-
Have never owned property in Australia (including investment property)
-
Intend to live in the property for at least 6 months within the first 12 months of ownership
Can my partner and I both use the FHSS Scheme?
Yes. If you’re both eligible, you can each save up to the maximum limits. This means couples could withdraw a combined total of up to $100,000.
How do I withdraw my savings?
You apply to the Australian Taxation Office (ATO) for a determination of your maximum release amount, then request the release. The ATO will send the funds to you, which you then use for your property purchase.
When should I apply to release my funds?
You should apply before signing a property contract. If you sign a contract first, you must do so within 14 days of the funds being released.
What happens if I don’t buy a property?
If you don’t purchase within 12 months (with a possible 12-month extension), you can either:
-
Re-contribute the funds back into super, or
-
Keep the funds and pay additional tax (20% of the assessable amount).
Can I use it for land purchases?
Yes. You can use FHSS funds to buy vacant residential land as long as you plan to build and live in the home.
