The First Home Super Saver Scheme, worked through
The First Home Super Saver Scheme lets you make voluntary contributions to super, taxed at 15% instead of your marginal rate, and release up to $50,000 of them plus earnings for a first home deposit. It is administered by the ATO, it works alongside the 5% Deposit Scheme and Help to Buy, and the saving depends on your tax rate. This guide works the numbers at two marginal rates, covers eligibility and the release timing, and lists the traps.
- Voluntary contributions only (salary sacrifice, deductible or after-tax); employer super guarantee contributions cannot be released (CommBank, AMP)
- Up to $15,000 of contributions counted per financial year and $50,000 in total, released with ATO-calculated earnings (government site)
- Concessional contributions taxed at 15% in, marginal rate less a 30% offset out: about $2,250 net saved per $15,000 at a 37% marginal rate, about $1,800 at 30%
- Eligible if 18 or over at release, never released before, and intending to live in the home for at least six months of the first year (CommBank)
- Request the ATO determination before ownership transfers; funds go to you; post-release rules apply if you do not buy
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.
What is the First Home Super Saver Scheme?
The government's first home buyer site describes it as an ATO-administered program that helps you save a deposit for your first home using your super: you make extra voluntary contributions on top of what your employer pays, either before tax through salary sacrifice or after tax as personal contributions, and when you are ready to buy you apply to withdraw those contributions plus associated earnings. CommBank publishes the two limits: up to $15,000 from any one financial year and $50,000 in total. The point of the scheme is the tax rate inside super, and AMP publishes the logic: because super is generally taxed at a lower rate, saving through super can be more tax-effective than saving outside it.
How much does it save? Two worked examples
| Step | 37% marginal rate (plus 2% Medicare) | 30% marginal rate (plus 2% Medicare) |
|---|---|---|
| Salary sacrificed in one year | $15,000 | $15,000 |
| Tax if taken as salary instead | $5,850 (39%) | $4,800 (32%) |
| Contributions tax inside super | $2,250 (15%) | $2,250 (15%) |
| Saved on the way in | $3,600 | $2,550 |
| Tax on release (marginal rate less 30% offset) | $1,350 (9%) | $300 (2%) |
| Net saving per $15,000 | About $2,250 | About $2,250 |
| Net saving on the full $50,000 | About $7,500 | About $7,500 |
The arithmetic is ours and ignores the ATO's deemed earnings, which add to the release, and any Medicare levy surcharge or offsets that change your effective rate. At both rates the net saving lands around $2,250 per $15,000 because the release offset is fixed at 30 points; what changes is how much is saved up front versus paid on release. The ATO publishes an estimator that runs your own figures, and your super fund will tell you whether it supports the scheme, which the government's site says to check before you start.
Who is eligible?
CommBank publishes the three tests: you are 18 or older when you make the release request, you have not previously made a release request, and you intend to occupy the property for at least six months within the first 12 months after it is capable of being occupied. AMP adds that you must be an eligible first home buyer, and the ATO publishes that previous property owners may still be eligible in selected circumstances, including where a property was lost through hardship. The home must be one you will live in; the government's site says the scheme is not for an investment property. Each person in a couple can use the scheme separately, so two first home buyers can release up to $100,000 between them.
What counts as a voluntary contribution?
Salary sacrifice, personal contributions you claim as a tax deduction, and after-tax personal contributions; AMP lists all three. What does not count is the compulsory super guarantee your employer pays, which CommBank and AMP both flag. Salary sacrifice and deductible contributions are concessional and count towards the concessional cap together with your employer's contributions, so a high earner can hit the cap before reaching $15,000 of FHSS contributions; after-tax contributions sit under the separate non-concessional cap. Ask your fund which cap you have room under before you set up the sacrifice.
How and when do you get the money out?
Two steps with the ATO. First a determination, which tells you the maximum you can release; the government publishes that you must request it before property ownership transfers, and the sensible time is when you start looking. Then a release request when you are ready to buy; the ATO asks your fund for the money, withholds the release tax, and pays the balance to you, not to the vendor or your lender. Allow time for both steps before a settlement date, and tell your broker the release is part of the deposit so the lender's evidence of funds lines up. After release you have a set period to sign a contract or start a build; the ATO publishes that additional tax applies if the post-release requirements are not met, and the alternative is recontributing the amount to super.
FHSS with the 5% Deposit Scheme and Help to Buy
The three stack. IMB publishes that the 5% Deposit Scheme can be used in conjunction with the FHSS and state first home owner grants and stamp duty exemptions, so the FHSS release can be the 5% and the guarantee removes LMI on the rest. The same release can be the 2% under Help to Buy. The trap is timing: a lender wants the deposit evidenced at approval, and the FHSS release takes weeks, so start the ATO determination before pre-approval. A broker sequences it, and Your Finance Guide refers you to one licensed broker partner for that; we do not lend, assess applications or give tax advice, so confirm the contribution caps with your fund or accountant.
First home buyer guides
Where the FHSS release goes next.
First Home Super Saver FAQs
Is the first home super saver worth it?
Can I withdraw my super for a first home?
How much can I contribute and release?
Who is eligible?
When do I apply for the release?
How is the released amount taxed?
Can I use FHSS with the 5% Deposit Scheme or Help to Buy?
What if I do not end up buying?
Turn the super saving into a deposit
Tell us how much you have in the scheme and where you want to buy, and we refer you to one licensed broker partner who sequences the release with the 5% Deposit Scheme and your pre-approval. Free for borrowers, no obligation.