What is the first home super saver scheme in Australia 2026?
The First Home Super Saver Scheme (FHSSS) in Australia allows eligible first home buyers to save for a home deposit within their superannuation fund, leveraging tax concessions on voluntary contributions and earnings, which can then be withdrawn to purchase their first home.
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How it works in practice
Understanding the FHSSS
The First Home Super Saver Scheme (FHSSS) is an Australian government initiative designed to help first home buyers save for a deposit faster. It allows you to make voluntary contributions into your superannuation fund, which are then taxed at a concessional rate of 15%. When you are ready to buy your first home, you can apply to release these contributions, along with associated earnings, to use as part of your deposit. This scheme essentially combines the tax benefits of superannuation with the goal of home ownership.
How it Benefits First Home Buyers
The primary benefit of the FHSSS is the tax advantage. Both concessional (pre-tax) and non-concessional (after-tax) contributions can be eligible. Concessional contributions are taxed at 15% within super, which is often lower than your marginal income tax rate. When you withdraw the funds, a 30% tax offset applies to the associated earnings and concessional contributions, effectively reducing the tax paid on these savings. This makes it a more tax-effective way to save compared to a standard savings account, helping you accumulate a deposit more quickly.
Important exceptions
You must be 18 years or older, have never owned property in Australia, and intend to live in the home for at least six months within the first 12 months of ownership. The maximum amount of eligible contributions you can release is $15,000 from any one financial year and $50,000 in total (indexed annually).
Only voluntary contributions are eligible, not your employer's compulsory super guarantee contributions. You must apply for a FHSSS determination from the ATO before signing a contract to purchase a home. The scheme is for a first home, not an investment property.
What you should do now
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Check your eligibility criteria, ensuring you are 18+, have never owned property in Australia, and intend to live in the purchased home.
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Make voluntary concessional (salary sacrifice) or non-concessional (after-tax) contributions into your super fund, keeping track of the amounts.
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Once you're ready to buy a home, apply to the ATO for a First Home Super Saver Scheme (FHSSS) determination of your eligible release amount.
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Upon receiving your determination, request a release of funds from the ATO; these funds will be transferred to your bank account after tax is withheld.
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Sign a contract to purchase or construct your first home within 12 months of receiving your first FHSSS release, or request an extension.
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