First home super saver scheme
Saving for your first home is easier with the government’s First home super saver (FHSS) scheme. If eligible, you can add extra money into your super and let it earn investment returns. When you’re ready to put down a deposit, you can withdraw your extra contributions, plus the money earned through returns.
Saving through your super instead of the bank means you could save faster
- You’ll probably pay less tax if you use salary-sacrifice super contributions. Your super contributions are taxed at 15% tax, which is likely less than your income tax rate.*
- The investment returns you earn might also be greater than the interest earned on a cash savings account.*
How it works
You can contribute up to $15,000 each financial year and a total of $30,000 ($60,000 for couples).
Eligible contributions include:
When you’re ready to buy your home, you apply to the ATO to withdraw your money. If your application is approved, we’ll release your extra contributions plus any investment earnings.
You’ll have a year from when you receive your savings to sign a contract to buy or build a home.
Generally, to be eligible for the First home super saver (FHSS) scheme you need to be:
- aged 18 or over (although you can start contributing when you’re younger)
- buying or building your first home
- planning to live in the home for at least 6 months within a year of you being able to move in.
Other eligibility criteria may apply; visit the ATO for more information.
Things to consider
- The usual caps on super contributions apply.
- You can only use salary sacrifice or after-tax contributions. You can’t use standard employer contributions or other contribution types like spouse or government contributions.
- DBD members can only use voluntary contributions to the accumulation component (not employer contributions or default member contributions to the defined benefit component).
- If you don’t sign a contract to buy or build a home within a year of withdrawing your contributions, you can either transfer the money back into super (less any tax) or keep it and pay tax equal to 20% of the amount. You can apply to the ATO for an extension if needed.