First Home Super Saver Scheme (FHSSS): Complete Guide for Australian Buyers (2026)

Introduced on 1 July 2018, the FHSSS was designed to help Australians break into the property market sooner by leveraging the tax advantages of superannuation. The scheme allows eligible individuals to make voluntary contributions of up to $15,000 per financial year and $50,000 in total, then withdraw those contributions (plus associated earnings) to put towards their first home deposit. With rising property prices across Australia, the tax savings offered by the FHSSS can make a meaningful difference — potentially saving you thousands of dollars compared to saving through a regular bank account.

How the FHSSS Works

Eligibility Requirements

To be eligible for the FHSSS, you must meet all of the following criteria:

• Never owned property in Australia: You must not have previously owned a residential property in Australia — including an investment property, a property you inherited that was not disposed of within 12 months, or a commercial residential premises (such as a holiday house that was rented out).
• Aged 18 or over: You must be at least 18 years old at the time you request a determination from the ATO. There is no upper age limit.
• Intend to live in the property: You must intend to occupy the property as your home for at least 6 months of the first 12 months after it is practical to move in. This means the scheme cannot be used to purchase a pure investment property.
• Not previously requested a FHSS release: You can only make one FHSS release request in your lifetime. If you have previously requested a release — even if you did not end up buying a property — you cannot apply again.

Contribution Limits and Tax Treatment

Understanding the tax treatment of your FHSSS contributions is essential to maximising your savings. There are two types of voluntary contributions you can make:

• Concessional (pre-tax) contributions: These include salary sacrifice contributions and personal contributions for which you claim a tax deduction. They are taxed at 15% within your super fund, which is significantly lower than most people's marginal tax rate (which ranges from 19% to 45% plus the 2% Medicare levy). This is where the main tax saving comes from. Note that concessional contributions count towards your overall concessional contributions cap of $30,000 per year (which includes your employer's compulsory super guarantee contributions).
• Non-concessional (after-tax) contributions: These are contributions made from your after-tax income without claiming a tax deduction. They are not taxed when they enter super (because you have already paid tax on the income), so the benefit here is the associated earnings that accrue at a favourable rate rather than a direct tax saving on the contributions themselves.

The maximum you can contribute under the FHSSS is $15,000 per financial year and $50,000 in total across all years. When your FHSS amount is released, the ATO releases 85% of eligible concessional contributions and 100% of non-concessional contributions, plus associated earnings calculated using the ATO's shortfall interest charge (SIC) rate — not the actual investment returns of your super fund. The SIC rate is a standardised rate published by the ATO and is typically around 4-5% per annum, providing a predictable return regardless of how your super fund actually performs.

FHSSS Savings Example

Here is a worked example showing how much you could save using the FHSSS compared to saving through a regular bank account. This example assumes you earn a salary of $85,000 per year, placing you in the 30% marginal tax rate bracket (plus 2% Medicare levy, for a combined marginal rate of 32%). Under the current tax rates (from 1 July 2024), the 30% rate applies to taxable incomes between $45,001 and $135,000.

If you salary sacrifice $15,000 per year into super, that contribution is taxed at just 15% inside super — meaning $2,250 goes to tax and $12,750 stays in your super fund. If you had instead saved that same $15,000 from your after-tax salary, you would have first paid tax at your marginal rate of 32%, costing you $4,800 in tax and leaving you with only $10,200 in your bank account.

The difference is $2,550 per year in tax savings ($4,800 minus $2,250). Over three financial years of maximum contributions, that adds up to approximately $7,650 in total tax savings. On top of this, your contributions earn associated earnings at the SIC rate while they remain in super, adding further to your total withdrawal amount.

In total, after three years of salary sacrificing $15,000 per year, you could withdraw approximately $45,000 in contributions plus associated earnings — compared to roughly $30,600 you would have saved after tax through a regular bank account (before accounting for interest). That is a significant head start on your deposit.

How to Apply for FHSSS Release

Critical Rules and Pitfalls

FHSSS vs Other First Home Buyer Schemes

The FHSSS is one of several government schemes available to Australian first home buyers, and it serves a different purpose from the others. Understanding the differences helps you decide which schemes to take advantage of — and in many cases, you can combine them.

The FHSSS is a tax-advantaged savings scheme. It helps you accumulate your deposit faster by reducing the tax you pay on the money you save. It does not provide a cash grant or guarantee — it simply makes your own savings go further through the concessional tax rate inside super.

The First Home Owner Grant (FHOG) is a one-off cash grant provided by state and territory governments. The amount varies by state (typically $10,000 to $30,000) and is generally only available for new homes or newly built properties, not established homes. Unlike the FHSSS, the FHOG is free money — you do not need to save or contribute anything to receive it.

The Home Guarantee Scheme (administered by Housing Australia) is a deposit guarantee scheme. It allows eligible first home buyers to purchase with a deposit as low as 5% without paying Lenders Mortgage Insurance (LMI). The government guarantees the difference between your deposit and 20%. This scheme does not provide cash or tax savings — it removes the LMI barrier for low-deposit buyers.

You can combine these schemes. For example, you could use the FHSSS to save your deposit at a concessional tax rate, apply for the FHOG to add a cash grant on top, and use the Home Guarantee Scheme to avoid paying LMI if your total deposit is still under 20%. Each scheme has its own eligibility criteria, so check the requirements for each one individually.

Related Guides

• First Home Buyer Guide Australia — The complete step-by-step guide to buying your first home in Australia.
• Stamp Duty Calculator — Calculate your stamp duty liability including first home buyer concessions in every state.
• Borrowing Capacity Calculator — Estimate how much you can borrow based on your income and expenses.
• Stamp Duty Exemptions for First Home Buyers — State-by-state breakdown of stamp duty concessions and exemptions available to first home buyers.