By Rhiannon Kanoniuk | December 10, 2021
[Updated 26 March 2026]
The First Home Super Saver Scheme (FHSS) has now been available for over 8 years, but it still remains an under-utilised tool in helping you save for your – or your kids’ – first home. Below is a recap of how the scheme works, and why it may be worth considering as part of either your own savings plan, or if you are a parent looking to assist your children with their first home purchase.
How does the FHSS work?
If you’re aged 18 or over and are an eligible first home buyer, you may be able to withdraw voluntary super contributions made since 1 July 2017 to put towards the purchase of your first home.
Under the current rules, these voluntary contributions are capped at $15,000 per financial year, with a total maximum of $50,000 counted towards the scheme. This applies to each individual buying the home, so if purchasing with a spouse, friend or sibling, each person has access to their own FHSS amount.
Although you need to be 18 to request a release under the scheme, contributions can be made before this age.
What counts as a voluntary super contribution?
Super contributions that may be withdrawn under the FHSS include:
Important note: your compulsory employer super contributions cannot be withdrawn under the FHSS. Spouse contributions also cannot be withdrawn.
How is this beneficial?
As superannuation is generally a more favourable tax environment compared to an individual taxpayer’s own marginal tax rate, the intention is that a first home buyer may be able to grow a deposit faster and also reduce the tax they pay along the way.
Associated earnings are not based on what your super fund actually earned. Instead, they are deemed using the ATO’s shortfall interest charge formula, being the 90-day bank bill rate plus 3%. As a guide, the annual rate for April to June 2026 is 6.96%.
When money is withdrawn under the FHSS, amounts originally contributed as concessional contributions are generally taxed at your marginal tax rate less a 30% tax offset, along with the associated earnings. Non-concessional contributions are not taxed on release.
How do I get my savings out of my fund?
You first need to request a determination from the ATO, usually through your myGov account, which tells you how much you can withdraw under the scheme. You can make multiple determination requests.
One important update is that the timing rules have become more flexible. For FHSS determinations made on or after 15 September 2024, you can sign a contract to purchase or construct your home up to 90 days before making your valid release request, or up to 12 months after the release request, with extensions available in some cases.
That said, the safest approach is still to get organised early. The ATO notes that it generally takes around 15 to 20 business days for the funds to be released to you.
After you sign a contract, you must notify the ATO within 28 days.
How much can I withdraw?
Your FHSS maximum release amount is made up of your eligible contributions, subject to the annual and total caps, plus associated deemed earnings. This amount includes:
The calculation takes into account the $15,000 limit from any one financial year and the $50,000 total cap across all years, before adding the associated earnings.
What other fine print is there?
You must either sign a contract to purchase or construct a home within the required timeframe, or recontribute the released amount back into super, less any tax withheld.
You also need to genuinely intend to live in the property. In general, you must move into the home as soon as practicable after purchase or construction is complete, and intend to live there for at least 6 months of the first 12 months in which it is practicably possible to do so.
It is also worth noting that the FHSS cannot be used to buy vacant land on its own, but it can be used where you enter into a contract to construct a home on vacant land, provided ownership of that land has not already transferred to you before applying for an FHSS determination.
Further information can be found directly on the ATO website.
How we can help
As always, the above information is general in nature only and does not consider your personal circumstances. If you want to know how to apply this to your own situation, please book with one of our advisers here: Pekada Bookings Page.
Rhiannon is the co-founder and leads the strategy & compliance board of Pekada. She is a qualified financial adviser based in Melbourne, and has been advising since 2006. Rhiannon is passionate about helping everyday people benefit from the opportunities which come from a great financial plan. She has been featured as an expert in the Australian Financial Review, Super Guide and Professional Planner.