Buying your first home in Australia can feel out of reach—but this scheme could help you fast-track your deposit using the tax advantages of super. Let’s break it down.
What is the FHSSS?
The First Home Super Saver Scheme allows eligible Australians to make voluntary contributions into their super and then withdraw those savings—plus earnings—to put toward a home deposit. Why does this matter? Because super is generally taxed at a much lower rate than your regular income or savings account earnings. You can withdraw up to $50,000 of your voluntary contributions—not including your employer’s compulsory contributions—making it a very tax-effective way to grow your deposit.
To use the scheme, you must:
And remember—this is a one-time opportunity. Once you use the FHSSS, you can’t access it again.
Here’s how the numbers stack up:
Real Examples
Let’s look at Jasmine.
She earns $80,000 and salary sacrifices $10,000 into her super. After the 15% super contributions tax, she has $8,500remaining. Add assumed earnings of around $500—and her total releasable amount is roughly $9,000.
Her effective tax on withdrawal? Just 2.5%. That’s a huge saving compared to a standard bank account.
Or take Ben and Priya — a couple who each contribute $12,000 a year for two years. After earnings, they each withdraw about $25,500—giving them a combined deposit of over$50,000.
Strategy & Next Steps
The FHSSS is a powerful tool—but only if you understand the rules, timelines, and how to use it correctly.
If you’re considering it, now’s the time to plan your contributions and apply through the ATO for a determination before making any moves.
Personalised Support
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Unfortunately, that generally makes you ineligible. Ownership of any property — including vacant land or commercial real estate — disqualifies you.
The First Home Super Saver Scheme can be a smart way to boost your deposit — especially if you plan ahead. By using the lower-tax environment of super, many first-time buyers can save faster and more efficiently.
But like any government scheme, it’s important to understand the fine print. If the FHSSS sounds like it might suit your situation, it’s worth speaking with a professional to help you structure it correctly.
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Disclosure: General information only. Consider your objectives, financial situation and needs, and seek professional advice before acting.
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