Buying your first home can feel like a massive financial leap, especially when it comes to saving a deposit. But what if one of your biggest savings tools was already quietly building in the background?
Let’s talk about the First Home Super Saver Scheme (FHSSS), a lesser-known option that may assist eligible buyers to build their deposit through voluntary super contributions.
What is the First Home Super Saver Scheme?
The FHSSS is an Australian Government initiative that allows eligible first-home buyers to withdraw voluntary super contributions (within caps) to put toward a home deposit. More specifically, you can withdraw up to $50,000 (or $15,000 per financial year) from voluntary super contributions, plus earnings, to put toward buying your first home.
The scheme is designed to allow eligible buyers to save through voluntary contributions made to their super fund, subject to ATO rules and contribution caps.
How Does It Work?
Here’s the gist, in plain English:
- Make voluntary contributions into your super fund (above your employer's 11%)
- Voluntary contributions are treated according to superannuation tax rules. It’s important to seek independent tax advice to understand how these rules apply to you
- Later, you can apply to the ATO to release those funds to use toward your home deposit
- You can contribute via salary sacrifice or personal after-tax payments (just be mindful of annual contribution caps)
Why First-Home Buyers Love It
- Using voluntary contributions within the FHSSS may change the way you save for a deposit, depending on your circumstances and the relevant tax rules. Seek independent tax advice before making contributions
- A larger deposit can influence some lending assessments, but outcomes vary and depend on individual circumstances. A broker can help explain how deposit size interacts with lender criteria
- Government-backed – It’s a formal scheme with protections in place
Your savings trajectory will depend on contribution caps, timing, super fund performance, and tax rules. Seek independent financial and tax advice before deciding
The Fine Print (Worth Knowing)
- You must live in the home for at least 6 months within the first 12 months of ownership
- The funds can only be used for a residential property (not investment)
- There’s a limit to how much you can contribute and withdraw — and you must apply for a FHSS determination before signing a contract
Using the FHSSS involves specific rules and timeframes. Understanding these early can help you know whether the scheme fits into your broader plans. Seek independent financial/tax advice to assess suitability.
You’re Closer Than You Think
Saving a deposit while renting, budgeting, and juggling life can feel overwhelming, but you’ve got more tools than you realise. The FHSSS is one option some first-home buyers consider. Whether it may assist depends on your financial and tax circumstances, independent professional advice is essential.
Feeling curious about whether it’s right for you?
Get the Full Picture (And Avoid Costly Mistakes)
Our free First Home Buyer e-book breaks down exactly how to apply for the FHSS Scheme, and provides general guidance to help you understand the FHSSS process and other common considerations. It also includes budgeting templates, checklists, and expert guidance from deposit to keys.
Download your free guide now, and take your first step toward home ownership with clarity and confidence.
