First home super saver (FHSS) scheme

If you’re considering purchasing your first home, you may be able to withdraw some of your personal super contributions to put towards a deposit.

Considerations

To be eligible for the FHSS you need to be 18 years or over, never have owned a property in Australia previously, not be using FHSS to purchase another property and never have requested the release of FHSS funds to purchase a home before.

The most you can apply to release under the FHSS scheme is $15,000 of your personal super contributions from any one financial year, up to a maximum of $50,000¹ in contributions per person (a combined amount of $100,000 per couple) over all financial years. Only eligible contributions made from 1 July 2017 can count towards the total amount released and excludes Superannuation Guarantee contributions made by your employer, and any spouse contributions.

Once you withdraw your deposit, you’ll need to sign a contract of purchase or construct a home within 12 months, otherwise you may by liable for FHSS tax of 20%.

You must purchase a residential property, you cannot use the FHSS to purchase a houseboat, motor home, vacant land (unless you’re building on it) or any other form of property not able to be occupied as a residence.

Using your super account to save for a home deposit is an alternative to using a bank account to save for your first home. If you change your mind, your savings will remain in your super account and go towards growing your retirement savings.

From 15 September 2024²:

• The Commissioner of Taxation has increased discretion to amend and revoke FHSS scheme requests
• You can withdraw or amend your request prior to you receiving a FHSS scheme amount, and if you withdraw your request you can re-apply for FHSS scheme releases in the future
• The Commissioner can return the released FHSS scheme amounts to your super fund, provided that the money has not yet been released to you, and
• The money returned to super funds is treated as funds’ non-assessable non-exempt income and does not count towards your contribution caps.

¹ From 1 July 2022
² Source: ATO First Home Super Saver Scheme – technical changes, October 2023.