First Home Super Saver Scheme (FHSS) Guide 2025

The First Home Super Saver (FHSS) scheme is an Australian Government initiative that allows first home buyers to save a deposit inside their superannuation fund and later withdraw those savings — along with associated earnings — to put towards their first home. Because super is taxed at 15% (rather than your marginal income tax rate), the FHSS scheme can meaningfully accelerate your deposit savings.

How the FHSS Scheme Works

The FHSS scheme lets you make voluntary concessional (before-tax) or non-concessional (after-tax) contributions to your superannuation fund and then request a release of those amounts when you’re ready to buy. Here is the process step by step:

Make voluntary contributions: Salary sacrifice or personal deductible contributions (concessional) are taxed at just 15% — significantly less than most people’s marginal tax rate of 32.5% or higher
Contributions accumulate in super: Associated earnings are calculated using the ATO’s shortfall interest charge rate, not your fund’s actual returns
Apply for an FHSS determination: When you’re ready to buy, apply to the ATO to determine your maximum releasable amount
Request a release: The ATO instructs your super fund to release the funds and sends them to you, less a 30% tax withholding (you may receive a partial refund on assessment depending on your tax rate)
Sign a contract within 12 months: Once you receive an FHSS release, you have 12 months (extendable to 24 months) to sign a purchase contract

Contribution Limits

The FHSS scheme has the following limits:

Annual limit: Up to $15,000 per financial year can be counted towards the FHSS (note: this is a counting limit, not a contribution cap — you must stay within your overall concessional cap of $30,000/year)
Lifetime limit: $50,000 total in FHSS contributions can be released (increased from $30,000 to $50,000 in July 2022)
Both members of a couple can each use the FHSS scheme, potentially accessing up to $100,000 combined for a joint purchase

Tax Benefits of the FHSS Scheme

The primary benefit of FHSS is the tax saving on savings. Consider this example:

You earn $90,000 per year (marginal tax rate 32.5% + 2% Medicare Levy = 34.5%)
If you save $15,000 in a bank account, the government takes approximately $5,175 in income tax, leaving $9,825
If you salary sacrifice $15,000 to super (FHSS), only 15% tax is paid in super, leaving $12,750 working for you
Annual tax saving: approximately $2,925 on $15,000 of savings

Over four years of maximum contributions, this tax advantage can represent a material acceleration of your deposit — particularly for those on higher incomes.

Eligibility Requirements

To be eligible for the FHSS scheme, you must:

Be 18 years of age or older at the time of applying for release
Have never owned residential property in Australia (including investment property)
Have never previously made an FHSS release request
Intend to live in the property as soon as practicable and for at least 6 months within the first 12 months of ownership

The scheme applies to each individual — so if you are buying with a partner, they must also be a first home buyer to make their own FHSS release.

Timeline: From Contribution to Withdrawal

Many first home buyers underestimate the lead time required. Here is a realistic FHSS timeline:

Year 1–3+: Make voluntary super contributions within the annual $15,000 FHSS limit
When ready to buy: Apply to the ATO for an FHSS determination (online via myGov)
ATO processing: Allow 20–25 business days for the ATO to issue the determination
Request release: Submit a release request to the ATO (separate from the determination)
Fund processing: Your super fund releases funds within 15–20 business days of ATO instruction
Receive funds: You receive the funds less the 30% withholding tax offset

Plan for at least 6–8 weeks from applying to receiving funds. Do not sign a purchase contract expecting to use FHSS funds until you have them in hand (or seek advice on the risks).

Using FHSS Alongside Other Schemes

The FHSS scheme can be combined with:

First Home Guarantee: Use your FHSS release as part of the 5% deposit required under the First Home Guarantee
First Home Owner Grant (FHOG): State and territory grants can supplement funds released under FHSS
Stamp duty exemptions: State-based concessions apply independently of FHSS

For personalised guidance, connect with a first home buyer specialist at Lagos Financial who can map out the right combination of schemes for your situation.

Frequently Asked Questions

How much can I save through the FHSS scheme?

You can contribute up to $15,000 per financial year towards the FHSS scheme, up to a lifetime total of $50,000. If buying with a partner who also qualifies, you can each access up to $50,000 — a combined $100,000 — from your respective super funds. The exact amount released will also include associated earnings calculated at the ATO’s shortfall interest charge rate.

How do I withdraw my FHSS funds?

You cannot withdraw directly from your super fund — the process goes through the ATO. First, apply for an FHSS determination via myGov to confirm your maximum releasable amount. Then submit a release request. The ATO instructs your super fund to pay the amount to the ATO, which then releases the funds to you after applying a 30% withholding tax offset (adjustable at tax time). The entire process typically takes 6–8 weeks.

Can I use the FHSS scheme and the First Home Guarantee together?

Yes. The FHSS scheme and the First Home Guarantee operate independently and can be used together. You could use your FHSS release as part or all of your 5% deposit required under the First Home Guarantee, then apply for the government guarantee to cover the remaining gap to 20% — avoiding LMI entirely. This combination is one of the most powerful strategies available to eligible first home buyers.

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About the Author
Victor Lagos is a licensed mortgage broker (ACL 546774) and founder of Lagos Financial, with close to 20 years of finance industry experience since beginning his career at Bluestone Mortgages in 2006. A member of the Finance Brokers Association of Australia (FBAA) since 2015 and the Australian Financial Complaints Authority (AFCA — 98399), Victor helps Australians build wealth through tailored home loan and property investment strategies, working with 60+ lenders nationwide. Last reviewed: March 2026.

First Home Super Saver Scheme (FHSS) Complete Guide