First Home Super Saver Scheme (FHSS) Explained: 2026–27

First Home Super Saver Scheme Explained

The First Home Super Saver Scheme, or FHSS, lets eligible first home buyers save through super and later apply to release some of those voluntary contributions, plus associated earnings, to help buy or build a home in Australia.

Run the numbers → Use our free FHSS Calculator to see how much you could save through the First Home Super Saver Scheme.

For some people, it can be a smart way to save for a deposit. For others, the benefit may be smaller than expected. It really depends on your income, your timeline, and whether you can follow the rules properly.

Written by Alan O'Reilly, an Irish and Australian qualified financial adviser based in Melbourne.

The main attraction is the tax treatment. Eligible concessional contributions are generally taxed at 15 percent inside super, which is often lower than a person's marginal tax rate. That can make the saving process more efficient. But FHSS is not just a tax idea. It is a rules-based process. Timing matters. Contribution type matters. The release process matters too.

Table of contents

• Key takeaways
• What is the First Home Super Saver Scheme?
• Who is the FHSS scheme for?
• How the FHSS scheme works
• What contributions count under FHSS?
• How much can you withdraw under the FHSS scheme?
• A simple FHSS example
• Tax treatment in plain English
• Is the FHSS scheme worth using?
• Common misunderstandings
• What home can you buy under FHSS?
• Before using FHSS, what should you check?
• Final thoughts
• FAQs

Key takeaways

• The FHSS scheme lets eligible first home buyers use some voluntary super contributions, plus associated earnings, to help buy or build a first home in Australia.
• You can count up to $15,000 of eligible voluntary contributions from any one financial year and up to $50,000 across all years.
• Eligible non-concessional contributions count at 100 percent. Eligible concessional contributions count at 85 percent.
• You must request a FHSS determination before ownership of real property transfers to you. In practice, that usually means before settlement.
• Under the current rules, you can sign an eligible contract before requesting the release, but strict timing rules apply.
• The property must be one you genuinely intend to live in.
• FHSS can be worthwhile, but it is not automatically the best option for everyone.

What is the First Home Super Saver Scheme?

FHSS is an ATO-administered scheme that allows eligible people to make voluntary contributions into super, then later apply to release some of those amounts to help with their first home.

It is important to be clear on what it is not.

It is not a way to access your whole super balance. It is not a way to withdraw employer super guarantee contributions. And it is not separate money sitting in a special FHSS pocket inside your fund. The relevant contributions stay inside your super account until you apply through the ATO.

In plain English, the process works like this:

1. You make eligible voluntary contributions to super.
2. The ATO uses contribution information reported by your fund.
3. You request a FHSS determination.
4. You request a release, either before signing an eligible property contract or within the permitted period afterwards.
5. The ATO receives the money from your fund, withholds tax where required, then pays the net amount to you.
6. You buy or build an eligible home within the required timeframe, or deal with the released amount under the FHSS rules if you do not proceed.

Simple enough in theory. A bit more involved in practice.

Who is the FHSS scheme for?

At a high level, FHSS is for adults who have not previously held a relevant property interest in Australia and want to save for a first home to live in.

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

• 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 do not have a completed FHSS release request
• you genuinely intend to live in the property as your home

A relevant property interest can include more than a home you previously lived in. For example, an investment property or vacant land can also affect eligibility.

The ATO assesses eligibility on an individual basis. So if two eligible buyers purchase together, each person may be able to access their own FHSS amount.

There is also a financial hardship pathway for some people who previously owned property and lost it because of hardship. That is a more specific area and needs to be considered carefully.

If you want the full breakdown, including what counts as previous ownership and what types of contributions are eligible, read First Home Super Saver Scheme eligibility.

How the FHSS scheme works

The FHSS process has five main stages, from making the right contributions through to buying your home or dealing with the outcome if your plans change. None of the steps are especially hard on their own. The trick is getting the order right.

Step 1: Make eligible voluntary contributions

The scheme only applies to eligible voluntary contributions made on or after 1 July 2017.

These can include:

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

This is one of the most misunderstood parts of FHSS.

Not all super contributions count. Employer super guarantee contributions do not count. Government co-contributions do not count either. Spouse contributions made for you do not count. So before relying on FHSS, it is worth checking that the contribution type you are making is actually eligible.

One practical point here. If you make a personal after-tax contribution and intend to claim a tax deduction for it, make sure the deduction amount is correctly reflected in your FHSS determination. You also need to give your fund a valid Notice of Intent to Claim a Deduction and receive the fund's acknowledgement before claiming the deduction. Do not leave the notice until after the contribution has been released from that fund under FHSS, because a notice covering an amount already released will not be valid.

Step 2: Stay within the FHSS limits

For FHSS purposes, you can count:

• up to $15,000 of eligible voluntary contributions from any one financial year
• up to $50,000 of eligible voluntary contributions across all years

Then the contribution type matters.

When the ATO works out your maximum releasable amount, it includes:

• 100 percent of eligible non-concessional contributions
• 85 percent of eligible concessional contributions
• associated earnings

Associated earnings are not based on your fund's actual investment return. The ATO calculates them using a deemed rate called the shortfall interest charge rate, which is based on the 90-day Bank Bill rate plus 3 percentage points.

So if you make a $15,000 eligible non-concessional contribution, the full $15,000 can count before associated earnings are added. If you make a $15,000 eligible concessional contribution, only $12,750 counts before associated earnings.

Step 3: Request a FHSS determination

Before you can request a release, you need a FHSS determination from the ATO.

This tells you your maximum FHSS release amount based on the contributions reported and accepted.

You can request a determination more than once, provided you still meet the eligibility rules and have not requested a release. That can be useful if you need to correct information or include later contributions.

Most importantly, you must request your FHSS determination before ownership of any real property transfers to you. For a typical property purchase, that usually means before settlement.

Step 4: Request a release

Once you have a determination and want to access the money, you can request a release.

You can only submit one FHSS release request, so this step deserves care. Make sure the request includes the total amount you want released, up to your maximum FHSS release amount.

There are two timing rules worth keeping separate.

As a general rule, you should request the release within 60 days after the ATO issues your FHSS determination, unless the Commissioner allows you more time.

You can request the release before signing a property contract. However, under the rules applying to determinations made on or after 15 September 2024, you can also sign an eligible contract first and then request the release. If you do that, you should generally make the release request within 90 days of signing the contract.

Once you request the release, the ATO asks your super fund or funds to send the money to them. From there, the ATO withholds tax where required, offsets certain government debts if relevant, and pays the remaining amount to your bank account.

The ATO says it will usually take between 15 and 20 business days from requesting the release until the released amount is paid to you. That is worth allowing for before you get too close to settlement.

Step 5: Buy or build an eligible home

The contract and release do not always have to happen in the same order.

For determinations made on or after 15 September 2024, you can generally sign an eligible contract during the period starting 90 days before your FHSS release request and ending 12 months after the release request.

You must still have requested your FHSS determination before ownership of real property transfers to you.

You also need to notify the ATO after signing the contract. For a determination made on or after 15 September 2024, you generally have 90 days from signing the contract to notify them.

If you have not signed a contract within 12 months after your release request, the ATO may grant you a further 12 months, giving you up to 24 months in total. You do not need to apply for this extension. The ATO will notify you if one is granted.

This is where many people need to slow down and be careful. The process is manageable, but it is not something to leave to the last minute.

If your plans fall through, there are really three paths:

• buy or build within the required timeframe
• recontribute the relevant amount to super
• keep the money and pay FHSS tax

That FHSS tax is a flat 20 percent of your assessable FHSS released amount.

If you want the detailed timing rules, contract windows, and common errors, read First Home Super Saver Scheme withdrawal.

What contributions count under FHSS?

Eligible contributions can include:

• voluntary concessional contributions, such as salary sacrifice
• personal deductible contributions
• personal after-tax contributions you have not claimed as a deduction

Ineligible contributions include:

• employer super guarantee contributions
• contributions made before 1 July 2017
• spouse contributions made for you
• government co-contributions
• contribution-splitting amounts
• various other excluded contribution types

A simple rule of thumb is this: FHSS is built around your own eligible voluntary contributions, not the compulsory super contributions your employer already pays.

How much can you withdraw under the FHSS scheme?

Your maximum FHSS release amount is made up of:

• your eligible contributions, subject to the FHSS limits
• associated earnings deemed by the ATO

The key limits are:

• up to $15,000 of eligible voluntary contributions from any one financial year
• up to $50,000 across all years

And when calculating the releasable amount:

• eligible non-concessional contributions count at 100 percent
• eligible concessional contributions count at 85 percent
• associated earnings are added

That means the amount available for release depends not just on how much you contributed, but also on what type of contribution you made.

If you want to test your own numbers, use my First Home Super Saver Scheme calculator.

A simple FHSS example

Let's say Mia wants to buy her first home.

Over two financial years, she makes these eligible voluntary contributions:

• Year 1: $10,000 salary sacrifice
• Year 2: $15,000 personal after-tax contribution that she does not claim as a deduction

For FHSS purposes:

• the $10,000 salary sacrifice contribution counts at 85 percent, so $8,500 counts
• the $15,000 non-concessional contribution counts at 100 percent, so the full $15,000 counts
• associated earnings are then added

Before associated earnings, Mia has $23,500 counted toward her potential release amount.

Real life can be a bit messier than this. Multiple funds, reporting delays, or incorrectly classified contributions can all cause issues. That is why checking the details matters before you hit the release stage.

Tax treatment in plain English

This is often where FHSS becomes attractive.

Eligible concessional contributions are generally taxed at 15 percent in the fund. For many people, that is lower than the tax they would otherwise pay on that income outside super.

When you later request a FHSS release, the assessable FHSS released amount is included in your assessable income for the financial year in which you requested the release. You also receive a 30 percent FHSS tax offset.

That does not mean the whole release is tax free. It means the tax treatment is concessional, not exempt.

There is also an important difference between the assessable amount and the cash that lands in your bank account. The ATO may withhold tax before the money is paid to you. At the end of the financial year, you receive a payment summary showing:

• the assessable FHSS released amount
• the tax withheld

Both need to be included in your tax return for the year you requested the release, even if you actually receive the money in the next financial year.

That point is easy to miss.

Is the FHSS scheme worth using?

Sometimes yes. Sometimes not really.

FHSS can be useful where you still have time to save, your income means concessional contributions create a real tax benefit, and you are comfortable following the process properly.

It may be less compelling if you are very close to buying, your likely benefit is modest, or you would rather keep full flexibility over your savings outside super.

That decision deserves its own discussion, so I cover it separately here: Is the First Home Super Saver Scheme worth it?

Common misunderstandings

A few issues come up again and again.

Thinking employer contributions count

They do not. FHSS is based on eligible voluntary contributions.

Leaving the process too late

You must request a FHSS determination before ownership of real property transfers to you. In practice, that usually means before settlement.

The release itself can also take around 15 to 20 business days, so the legal deadline and the sensible planning deadline are not necessarily the same thing.

Using the wrong date for contributions

The relevant date is when the contribution is received by the super fund, not when it left your pay or bank account.

Assuming you can release money more than once

You can request more than one determination before making a release request, but you can only submit one FHSS release request. Make sure it includes the total amount you want released.

What home can you buy under FHSS?

The scheme is for buying or building residential property in Australia for you to live in as your first home.

You must genuinely intend to occupy the property 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.

The scheme cannot be used to purchase:

• a houseboat
• a motor home
• premises not capable of being occupied as a residence

The ATO also says you cannot use the FHSS scheme to purchase vacant land. However, the contract can be for the construction of a home on vacant land, provided ownership of the vacant land has not transferred to you before applying for a FHSS determination and the relevant conditions are met.

FHSS can also be used alongside other government home-buying programs. Each program has its own eligibility rules, so qualifying for FHSS does not automatically mean you will qualify for another program.

Before using FHSS, what should you check?

Before making this part of your deposit strategy, I would check:

• that your contribution type is eligible
• that your super fund will release FHSS amounts
• that your details with the fund and the ATO match
• that your timeline allows enough room for the determination and release process
• that you understand the tax treatment
• that the scheme is actually worth using in your situation

That last one matters most. A tax benefit sounds nice on paper. But the best strategy is the one that actually fits your life.

Final thoughts

The First Home Super Saver Scheme can be a useful way to save for a first home, especially if voluntary super contributions improve the tax efficiency of the journey.

But it is not just about saving into super and hoping for the best.

You need the right contribution type. You need the right timing. And you need to understand the release process before you are deep into the property search.

If you want to see what it could look like in your own case, start with my First Home Super Saver Scheme calculator.

You can also keep reading the rest of this cluster:

• Is the First Home Super Saver Scheme worth it?
• First Home Super Saver Scheme eligibility
• 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 personalised advice on whether the FHSS scheme fits your deposit strategy, learn more about my superannuation advice service.

FAQs

What is the First Home Super Saver Scheme?

The First Home Super Saver Scheme lets eligible first home buyers save voluntary super contributions and later apply to release some of those amounts, plus associated earnings, to help buy or build a home in Australia.

How much can you withdraw under the FHSS scheme?

You can count up to $15,000 of eligible voluntary contributions from any one financial year and up to $50,000 across all years. Your releasable amount can include 100 percent of eligible non-concessional contributions, 85 percent of eligible concessional contributions, and associated earnings.

Can I sign a property contract before my FHSS money is released?

Yes. Under the current rules, you can sign an eligible contract before requesting your FHSS release. If your determination was made on or after 15 September 2024, you should generally request the release within 90 days of signing the contract. You must still have requested your FHSS determination before ownership of the property transfers to you.

Can you use FHSS with other government home-buying programs?

Yes. The Australian Government says FHSS can be used with other government home-buying programs. However, the eligibility rules for those other programs still apply.