The First Home Super Saver Scheme: a step-by-step guide

The First Home Super Saver Scheme (FHSS) allows a person who has never owned property in Australia to make voluntary contributions to their super fund and later release them, with associated earnings, to help buy or build a first home. According to the Australian Government's FHSS fact sheet, as at September 2026 up to $15,000 of eligible contributions from any one financial year, and up to $50,000 across all years, can count towards a release. The scheme is administered by the Australian Taxation Office (ATO).

The benefit comes from the concessional tax treatment of super. The risk comes from the process: the steps must occur in a set order, only one release request is permitted, and deadlines apply after the money is released. This guide sets out those steps in sequence.

Who is eligible for the First Home Super Saver Scheme

The government fact sheet lists the following conditions. A person must:

• be 18 or older when requesting a determination, although saving can begin earlier;
• have never owned property in Australia, which includes an investment property, vacant land, commercial property, some leases of land and a company title interest, unless the ATO accepts that financial hardship provisions apply;
• plan to live in the home that is bought or built;
• have made eligible voluntary contributions; and
• not have previously released money under the scheme.

The fact sheet states that there is no requirement to be an Australian citizen, an Australian resident or a resident for tax purposes. Eligibility is assessed for each individual. Couples, siblings or friends may each release their own eligible contributions towards the same property, and one buyer's previous ownership does not prevent an eligible co-buyer from applying. The buyer's name must be on the title of the property purchased.

Contribution types and caps

Two kinds of voluntary contribution are eligible:

• Salary sacrifice contributions, which are pre-tax amounts arranged with an employer. These are concessional contributions.
• Personal voluntary contributions, made from after-tax money. These are non-concessional unless the person claims a tax deduction for them, in which case they become concessional.

Compulsory super guarantee contributions from an employer and spouse contributions cannot be released. The fact sheet also notes that a contribution counts on the date it is received by the fund, not the date on a payslip, which matters near 30 June.

Setting (government fact sheet, as at September 2026)	Amount
Eligible contributions that can count for each financial year	$15,000
Eligible contributions that can count across all years	$50,000
Share of non-concessional contributions that can be released	100%
Share of concessional contributions that can be released	85%
Associated earnings	Calculated by the ATO and added

The 85 per cent figure allows for the contributions tax that a super fund generally pays on concessional contributions. The scheme does not create extra contribution room: voluntary contributions still count towards the general concessional and non-concessional contribution caps, which are indexed from time to time. The current caps are published by the ATO, and a registered tax agent can confirm how they apply. Before contributing, the fact sheet recommends checking that the fund will release amounts under the scheme and asking about fees and any effect on insurance held in the fund.

How First Home Super Saver releases are taxed

Tax applies at two points. First, concessional contributions are generally taxed within the fund when they are received, instead of at the person's marginal rate. Second, the ATO withholds tax from the released amount before paying it. The fact sheet explains that, for most people, withholding is calculated at the expected marginal tax rate, including Medicare levy, less a 30 per cent offset. It gives the example of a person whose rate is 39 per cent including Medicare levy, for whom 9 per cent would be withheld.

The withholding is a prepayment towards the year's tax, not necessarily the final result. The released amount is reported in that year's tax return, so the outcome depends on total income for the year. The ATO's detailed guidance, which sets out exactly which components are assessable for after-tax contributions, could not be accessed when this article was prepared, so readers should confirm that point on the ATO website or with a registered tax agent.

Two other points from the fact sheet affect the net amount. If a person owes money to the ATO or another government agency, the release may be applied to that debt first. Released amounts are not used to reduce a HELP or similar study loan balance, although an overdue compulsory repayment forms part of an income tax debt and can be recovered from the release.

An illustrative example of the tax benefit

The following example is hypothetical. The marginal rate is assumed purely for illustration, investment earnings are ignored, and the result will differ for every person.

A buyer salary sacrifices $12,000 a year for three years, a total of $36,000. Their assumed marginal rate is 32 per cent including Medicare levy.

Step	Through the scheme	Saving from take-home pay
Pre-tax income set aside	$36,000	$36,000
Amount available before release tax	$30,600 (85% of $36,000)	$24,480 (after 32% income tax)
Withholding on release (32% less 30% offset = 2%)	$612	Not applicable
Net amount for the deposit	$29,988	$24,480

In this illustration the scheme produces $5,508 more for the deposit from the same pre-tax income. The advantage is generally larger for people on higher marginal rates and smaller for those on lower rates. The deposit calculator can be used to see how an amount of this size changes a savings timeline.

The determination and release steps in order

The government fact sheet describes the following sequence.

1. Confirm eligibility and check the fund. No notice to the employer, fund or ATO is required before contributing, except where a person intends to rely on the hardship provisions, which need ATO approval first.
2. Make eligible contributions by salary sacrifice, personal contributions, or both. Lump sums and regular amounts are both acceptable.
3. Check the fund's records. Use the fund's statements or online portal, not payslips, to confirm the date, amount and type of each contribution.
4. Request an FHSS determination through ATO online services in myGov. The maximum release amount appears on screen immediately and a written determination follows. Most contributions pre-fill, but recent contributions, salary sacrifice amounts from the 2017-18 financial year, and deductions not yet claimed in a lodged return may need to be entered manually.
5. Review the determination. More than one determination can be requested before settlement, so an error can be corrected at this stage.
6. Lodge the release request. Only one release request can ever be made, so it should include the total amount wanted. Once the ATO begins processing the fund's payment, the request cannot be changed or cancelled.
7. Receive the payment. The fund pays the ATO, which withholds tax and pays the balance to the nominated bank account. The fact sheet states that this usually takes 15 to 20 days where there are no issues.
8. Notify the ATO within 90 days of signing a contract to buy or build.

Timing relative to signing a contract

According to the fact sheet, the determination must be requested before the property contract is completed, which is generally settlement, when ownership transfers. A new determination must not be requested after settlement. If a contract is signed before a release has been requested, the buyer has 90 days from the contract date to lodge the release request.

In practice the release is often needed earlier than those outer limits suggest. A deposit is normally payable when contracts are exchanged, and settlement periods in many states run for only a few weeks. With a usual processing time of 15 to 20 days, a buyer who waits until a contract is signed may not have the money in time for the deposit and may need another source of funds. Many buyers therefore request the release when they begin seriously looking.

Releasing early starts a different deadline. The fact sheet states that a buyer has 12 months from the release request to sign a contract to buy or build, or to recontribute the required amount to super. The ATO generally grants an automatic 12 month extension, confirmed in writing, and the period cannot extend beyond 24 months. A person who does neither may face an additional tax, and a person who recontributes cannot use the scheme again.

Common mistakes to avoid

• Applying without having made any eligible voluntary contributions.
• Assuming that employer super guarantee or spouse contributions can be released.
• Relying on payslips, when contributions count only once the fund has received them.
• Omitting an intended tax deduction for personal contributions, which changes the determination.
• Releasing a partial amount and expecting to make a second request later.
• Requesting a determination after settlement.
• Exceeding the general contribution caps while trying to maximise the scheme.
• Forgetting to notify the ATO within 90 days of signing a contract.
• Overlooking that the release must be reported in the tax return for the year in which it is received.

Using the scheme with other first home buyer support

The fact sheet states that the scheme can be combined with other federal or state home buying schemes. A release can therefore form part of the deposit for a loan under the 5% Deposit Scheme, and Housing Australia's Help to Buy guidance also says that the super scheme may be used to save a deposit before buying under that program. State grants and duty relief are assessed separately, as outlined on the government grants page.

A larger deposit reduces the loan and may reduce or remove lenders mortgage insurance. The LMI calculator, the borrowing power calculator and the mortgage repayment calculator can help show the effect. The first home buyers section explains the wider purchase process, and the FAQs answer common questions about deposits. This article is general information only. The ATO, a licensed adviser or a registered tax agent can confirm how the rules apply to an individual.