FHSS Eligibility: Who Qualifies and What Contributions Count

FHSS Eligibility: Who Qualifies and What Contributions Count

The First Home Super Saver Scheme can be a useful way to save for a first home, but only if you actually qualify.

That sounds obvious, but this is where a lot of confusion starts. People often assume they can use FHSS because they have money in super. Others assume every extra contribution counts. The real question is narrower than that. You need to qualify personally, and the money also needs to come from the right type of contributions.

The FHSS rules look at both who you are and what contributions you made.

If you want the broad overview first, start with my guide on the First Home Super Saver Scheme explained.

If you want to estimate what the scheme may look like in your own case, use my First Home Super Saver Scheme calculator.

Key takeaways

• FHSS eligibility is based on both personal eligibility and contribution eligibility.
• You generally need to be 18 or older when requesting a FHSS determination.
• You generally must never have held a relevant property interest in Australia before.
• Your name must be on the title of the property you buy.
• The property must be one you genuinely intend to live in.
• Not all super contributions count. FHSS only works with eligible voluntary contributions.

The short answer

You are generally eligible for FHSS if:

• you are 18 or older when requesting a FHSS determination
• you have never held a relevant property interest in Australia before
• your name will be on the title of the property you buy
• you have not previously completed an FHSS release that prevents you from using the scheme again
• you genuinely intend to live in the home

Then there is a second layer.

Even if you personally qualify, the money still needs to come from eligible voluntary contributions. That is where many people come unstuck.

Who can use the FHSS scheme?

FHSS is assessed on an individual basis.

You do not need to be an Australian citizen or an Australian resident for tax purposes to use FHSS.

That does not override any separate restrictions that may apply to purchasing residential property in Australia, and the tax treatment of an FHSS release can also differ if you are not an Australian resident for tax purposes.

Eligibility is about you, not the group you are buying with. So if a couple buys together, each person is looked at separately. One person's past ownership history does not automatically disqualify the other person.

To use the scheme, you generally need to satisfy all of the following.

You must be at least 18 when requesting a determination

You need to be 18 or older when requesting a FHSS determination. Contributions made before turning 18 can still potentially be included, but you need to be at least 18 when you request the determination.

You generally must not have held a property interest before

This is the big one.

To qualify, you generally must never have held a relevant property interest in Australia before. The definition is broader than simply owning a home you lived in.

According to the ATO, previous property interests can include:

• an investment property
• vacant land
• commercial property
• certain long-term leases of land
• a company title interest in land

Inherited property can also affect your eligibility if the relevant property interest was actually transferred to you.

Simply being a beneficiary of an estate does not necessarily mean you have held the property. For example, if the estate sells the property and you receive part of the sale proceeds without the property being transferred to you, that is different.

So if you have previously held one of these property interests, you generally do not qualify under the standard rules.

Your name must be on the title

You cannot use FHSS to help someone else buy a property while staying off title yourself.

If you are using the scheme, your name must be on the title of the property you buy.

You must intend to live in the property

FHSS is for a first home you plan to live in, not just a property purchase in general.

The ATO says you must genuinely intend to occupy the property as a home as soon as practicable after purchase and live in it for at least 6 of the first 12 months from when it is practicable to occupy it.

That matters. FHSS is not meant to fund an investment property strategy.

Previous FHSS release requests can affect eligibility

You can request more than one FHSS determination if needed, provided you still meet the rules and have not made a release request that prevents a new determination.

There are some exceptions. For example, a previous release request may not prevent another determination if the request was withdrawn or the ATO revoked the release authority before the release was completed.

There are also temporary rules until 14 September 2027 that may help some people whose attempt to use FHSS before 15 September 2024 was unsuccessful and who did not actually receive an FHSS amount.

For most people, the practical point is simple: if you have previously requested an FHSS release, check your position before assuming you can use the scheme again.

What if you previously owned property?

Usually, previous ownership means you are out.

There is one important exception. The ATO has a financial hardship pathway for some people who previously held a property interest in Australia but lost ownership because of hardship. That can apply in situations such as bankruptcy, relationship breakdown, loss of employment, illness, or natural disaster.

This is not the standard pathway, and it is not something to assume applies automatically. It is a separate application process, and you need evidence that the hardship resulted in you losing the relevant property interests.

If this may apply to you, it is best to deal with the hardship application with the ATO before you begin relying on FHSS.

For most readers, the practical rule is simple: if you have held an Australian property interest before, assume you do not qualify unless the financial hardship exception clearly applies.

What contributions count for FHSS?

This is the other half of eligibility.

Even if you personally qualify, FHSS only applies to certain voluntary contributions made on or after 1 July 2017.

Eligible contributions can include:

• salary sacrifice contributions
• personal contributions you claim as a tax deduction
• personal after-tax contributions you do not claim as a deduction

These are the main categories most people will deal with.

FHSS also has its own contribution limits. You can count up to $15,000 of eligible voluntary contributions from any one financial year and up to $50,000 across all years.

Those limits are separate from the ordinary concessional and non-concessional contribution caps that apply to super more broadly.

It is also worth checking your broader contribution position. If part of your voluntary contributions ends up exceeding the relevant concessional or non-concessional contribution cap, that excess amount is not eligible for FHSS release.

What does not count for FHSS?

A lot of super contributions are not eligible.

This includes:

• employer super guarantee contributions
• contributions made before 1 July 2017
• spouse contributions made for you
• government co-contributions
• contribution-splitting amounts
• excess concessional or non-concessional contributions
• several other excluded contribution types under the ATO rules

That is why FHSS is narrower than it first sounds. Having money in super is not enough on its own. It has to be the right type of money.

Why employer contributions do not count

This is probably the most common misunderstanding.

Your employer's compulsory super guarantee contributions are part of your super balance, but they are not eligible FHSS contributions.

FHSS is built around your own eligible voluntary contributions. In plain English, the scheme is meant to reward deliberate saving, not simply let people access their compulsory super.

What if you salary sacrifice?

Salary sacrifice contributions can count for FHSS if they meet the rules.

That is one reason FHSS can be attractive. Salary sacrifice contributions are generally concessional contributions, which means they are usually taxed at 15 percent in the fund. But only 85 percent of eligible concessional contributions count toward your releasable amount.

So yes, salary sacrifice can count. But it does not count dollar for dollar at release.

What if you make personal after-tax contributions?

These can also count, provided they are eligible voluntary contributions and you do not claim a tax deduction for them.

This is important because eligible non-concessional contributions count at 100 percent toward your releasable amount.

That difference between concessional and non-concessional contributions is worth understanding. It affects how much you may actually be able to access later.

If you make a personal after-tax contribution and intend to claim a tax deduction for it, make sure the amount you intend to deduct is correctly reflected in your FHSS determination.

You also need to give your super fund a valid Notice of Intent to Claim a Deduction and receive the fund's acknowledgement before claiming the deduction in your tax return.

Do not leave the notice until after the relevant contribution has been released from that fund under FHSS. A Notice of Intent covering contributions that have already been released from the fund under FHSS will not be valid.

Contribution timing matters too

For FHSS, eligible contributions must have been made on or after 1 July 2017.

And when working out the relevant timing, the key date is generally when the contribution was received by the super fund, not when it left your bank account or appeared on your payslip.

That detail can matter if you are contributing close to financial year end.

Does the property need to meet any rules?

Yes.

The property must be residential premises in Australia and it must be capable of being occupied as a residence. You cannot use FHSS to buy a houseboat, a motor home, or premises that cannot be lived in.

You also cannot use FHSS to purchase vacant land on its own in the ordinary sense. However, you can enter into a contract to construct a home on vacant land, provided ownership of the land has not transferred to you before you apply for a FHSS determination and the other relevant rules are met.

If you want the fuller explanation, including how these property rules fit into the broader scheme, go back to the First Home Super Saver Scheme explained guide.

A quick eligibility checklist

Here is a simple checklist.

You may qualify if:

• you are 18 or older when requesting a FHSS determination
• you have never held a relevant property interest in Australia before
• your name will be on title
• you genuinely intend to live in the property
• you have made eligible voluntary contributions on or after 1 July 2017
• you have not previously completed an FHSS release that prevents you from using the scheme again

If one of those points is missing, stop and check before building FHSS into your deposit plan.

And even if you do qualify, the amount you may be able to release still depends on the type, timing, and size of the eligible contributions.

Common eligibility mistakes

A few issues come up often.

Assuming previous ownership does not matter if it was an investment

It still matters. Previous property interests are broader than just owning the home you live in.

Assuming employer super counts

It does not. FHSS only applies to eligible voluntary contributions.

Assuming every personal contribution is automatically eligible

Not always. The contribution type, timing and FHSS limits still matter.

Forgetting the home must be one you plan to live in

FHSS is not for buying an investment property and calling it your first home strategy.

So, do you qualify?

If you have never held a relevant property interest in Australia, are 18 or older, will be on title, plan to live in the property, and have made eligible voluntary contributions, you may well qualify.

If you are unsure, do not guess. FHSS is a useful scheme, but only when the foundations are right.

A good next step is to estimate your likely amount using my First Home Super Saver Scheme calculator.

Then go back to the main guide here: First Home Super Saver Scheme explained.

You may also want to read:

• Is the First Home Super Saver Scheme worth it?
• First Home Super Saver Scheme withdrawal

For the official rules and latest guidance, see the ATO First Home Super Saver Scheme page.

If you want help confirming your FHSS eligibility and contribution strategy, learn more about my superannuation advice service.

FAQs

Who is eligible for the First Home Super Saver Scheme?

You generally need to be 18 or older when requesting a FHSS determination, have never held a relevant property interest in Australia before, have your name on the title, and genuinely intend to live in the property you buy.

What contributions count for the FHSS scheme?

Eligible contributions can include salary sacrifice contributions, personal deductible contributions, and personal after-tax contributions you do not claim as a deduction, provided they were made on or after 1 July 2017.