First Home Super Saver Scheme: Use Your Super for Home Deposit

First Home Super Saver Scheme: Use Your Super for Home Deposit
First Home Super Saver Scheme


Did you know you can use your super to save for your first home deposit? The First Home Super Saver Scheme (FHSSS) is a government initiative designed to help Aussies like you achieve homeownership sooner.

By using your super savings towards your deposit, you can slash thousands of dollars off your home loan and get one step closer to that dream house.

This comprehensive guide will walk you through the process of utilising your super fund to purchase your first home. By the end, you’ll be equipped with the knowledge and resources necessary to make informed decisions about your finances and achieve your homeownership goals.

Understanding the First Home Super Saver Scheme (FHSSS)

The FHSSS allows first home buyers to make voluntary contributions to their superannuation fund, which can then be withdrawn towards their home deposit.

These voluntary contributions can be made through salary sacrifice arrangements with your employer or personal contributions from your after-tax income.

Imagine skipping years of saving and finally stepping into your dream home sooner. The FHSSS makes this a reality by letting you contribute up to $15,000 per year (capped at $50,000 total) to your super, which you can then withdraw for your first home purchase.

This money grows within your super fund at concessional tax rates (15% compared to your marginal income tax rate), giving you a significant financial advantage.

Eligibility and Conditions for the FHSSS

To qualify for the FHSSS, you must meet the following conditions:

  • Be at least 18 years old when requesting a FHSS determination or a release of money.
  • Be a first home buyer who has never owned property in Australia before.
  • Intend to occupy the property you buy as your principal place of residence.
  • Not have previously made a FHSS release request.

How Much Can You Save?

There are limits to how much super you can save for your first home through the FHSSS:

  • A maximum of $15,000 per financial year.
  • A maximum of $50,000 in total over all years.
  • You can also withdraw associated earnings after taxes.

Only contributions made from 1 July 2017 qualify for release.

How to Apply and Use FHSSS?

The process to apply and use the First Home Super Saver Scheme is relatively straightforward and comprises the following steps:

  1. Start Making Contributions: Begin making voluntary contributions through salary sacrifice or personal contributions.
  2. Submit a FHSS Determination Request: Request your maximum release amount from the ATO through your myGov account.
  3. Apply for a FHSS Release: Authorise the ATO to release your voluntary contributions and associated earnings.
  4. Sign a Contract: You have 12 months to sign a contract to buy or build your home.
  5. Notify ATO: Notify the ATO within 28 days of signing your contract.

Tips to Maximize Your Savings Through the FHSSS

First Home Super Saver Scheme can get you closer to your dream of buying your first home. Here are few tips to help maximize your savings:

  • Start Early and Contribute Regularly: Even small contributions can accumulate over time due to compounding.
  • Take Advantage of Salary Sacrifice: Reduce your taxable income and potentially lower your tax bracket.
  • Make After-Tax Contributions: Consider this option if you fall into a higher tax bracket.
  • Track Your Contributions: Stay informed about your contribution progress and FHSS determination request timing.
  • Consult with a Financial Advisor: Get personalised advice tailored to your specific financial circumstances.

Types of Property You Can Purchase With FHSSS

The First Home Super Saver Scheme (FHSSS) provides flexibility in terms of the types of property you can purchase. It can be used to buy a wide range of residential properties, including:

  • Existing houses
  • New builds
  • Off-the-plan properties
  • Townhouses
  • Apartments
  • Land with a contract to build a new home.

Pros and Cons of Using Super to Buy a House Through FHSSS

There are pros and cons of using FHSSS to purchase your first home, consider the following aspects before making the final decision.


  • Accelerate your savings towards your home deposit.
  • Benefit from a 15% tax rate on salary sacrifice contributions.
  • Couples can double their benefit by each making an FHSS withdrawal.
  • Leverage potential capital growth in the property market.
  • Enjoy a structured savings plan.


  • FHSS amount may not fully cover your deposit.
  • Salary sacrifice reduces your take-home pay.
  • Super funds become locked once deposited, making withdrawals for non-housing purposes difficult.
  • Additional administrative work may be involved.

Importance of Receiving Financial Advice

Navigating financial matters can be complex. Consulting a qualified financial advisor can provide personalised guidance and ensure the FHSSS aligns with your unique financial goals and circumstances.


The FHSSS is a powerful tool for first home buyers, offering substantial benefits for those who plan carefully and utilise the scheme effectively.

By carefully considering your options and seeking professional advice, you can take advantage of this valuable program and achieve your dream of homeownership.

Apply for First Home Super Saver Scheme Loan

DotCapital provides comprehensive and tailored advice to first home buyers. Our team of experienced mortgage brokers possesses deep understanding of the FHSSS scheme.

We equip you with the knowledge and tools needed to make informed decisions aligned with your financial goals and circumstances.

Trust DotCapital to help turn your homeownership dreams into reality. Call DotCapital on 03 8707 2892 or click the button below to send us an email.

Frequently Asked Questions: First Home Super Saver Scheme

Feeling lost in the details of the First Home Super Saver scheme? We’ve got you covered! This FAQ empowers you with clear answers to common questions, putting you in control of your homeownership journey.

Is the FHSSS worth It?

The viability of the FHSSS depends on your individual financial circumstances and goals. It’s beneficial for those with stable income and who can make regular contributions.

It’s also advantageous for individuals with a higher marginal tax rate due to the larger tax deduction on concessional contributions. Carefully assess your situation before making a decision.

Can I use the FHSSS with a family member?

Yes, you can! Family members who are eligible first-time home buyers can each apply and save funds through the FHSS independently. This allows you to combine your savings, potentially increasing your budget for a property.

However, the individual contribution limits still apply regardless of how many people are buying together.

What is the difference between the FHSSS and an SMSF?

While both relate to superannuation, the FHSSS and the Self-Managed Super Fund (SMSF) serve different purposes.

FHSSS is designed specifically for first home buyers to save for a deposit through voluntary contributions and subsequent withdrawal.

SMSF is A private super fund managed by you, offering greater control over your retirement savings and investments. Unlike the FHSSS, an SMSF can be used for various investments, including residential and commercial properties, but requires meticulous management due to complex regulations.

Do I qualify for the first home buyer stamp duty concession?

Eligibility for the First Home Buyer Stamp Duty Concession varies depending on your state or territory. Research and understand the requirements in your specific location to determine if you qualify.

Consulting with a conveyancer or mortgage broker can also provide clarity and ensure you’re maximising available benefits.

How long does it take for contributions to be released?

The ATO typically takes 15 to 20 business days to release contributions once a determination has been made.

Can I withdraw contributions within the same financial year?

Yes, you can withdraw contributions within the same financial year. When seeking your FHSS determination, you can include any voluntary contribution made from 1st of July 2017, up to the date of your request.

Can I purchase an investment property with the FHSSS?

No, the FHSSS is only applicable for purchasing a residential property intended to be your primary place of residence (PPOR). It cannot be used for investment properties.

Which banks in Australia provide FHSSS home loan?

The good news is that all major banks in Australia offer home loans that can be used with the First Home Super Saver Scheme (FHSSS). You can use your FHSSS funds as part of your deposit for a home loan from any lender that participates in the scheme, which includes:

What if I withdraw funds but don’t buy a home?

If you withdraw funds under the FHSS scheme but don’t proceed with the home purchase, you have up to 12 months from the first withdrawal to either buy a home or return the funds to your superannuation. You can apply for an extension of up to 12 additional months if necessary.

Consulting with a financial advisor can help determine the best course of action in this situation.

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