First Home Super Saver Scheme Explained (FHSS)

The First Home Super Saver scheme, explained with a worked example

The First Home Super Saver scheme (FHSS) lets first home buyers save a deposit inside super, where voluntary contributions can be taxed more lightly. The steps must be done in the right order, so read this before you sign a contract.

By Shay, founder and financial adviser, FinForce (ASIC Financial Advisers Register 000412776) · Published 28 October 2026 · Reviewed for 2026–27

How it works

You make voluntary contributions to super (salary sacrifice, personal deductible or after-tax contributions). Your employer’s compulsory super does not count.
You can count up to $15,000 of voluntary contributions a year, and up to $50,000 in total.
When you are ready, you ask the ATO for an FHSS determination, then request a release. You get back eligible contributions plus an amount of deemed earnings.
Before-tax contributions come back at 85% (the 15% contributions tax is not refunded). The released before-tax portion and earnings are taxed at your marginal rate, less a 30% offset.

Worked example (illustration only)

Mia, 29, earns $90,000 in Brisbane. She salary sacrifices $10,000 a year for three years.

Her fund pays 15% contributions tax, leaving $8,500 a year inside super.
If she had taken the $10,000 as pay, at a 30% marginal rate plus the 2% Medicare levy she would have kept about $6,800.
When released, the 85% portion is taxed at her marginal rate less the 30% offset, so roughly 2% in her case.

The head start comes from the gap between the tax rates. The exact result depends on your income, the deemed earnings rate and the year you withdraw. Use the ATO’s FHSS estimator for your own numbers.

The order matters

Check you are eligible (generally 18 or older, never owned property in Australia, and not released FHSS amounts before).
Make voluntary contributions and keep within your contribution caps.
Ask the ATO for an FHSS determination before requesting a release.
Sign a contract to buy or build within the time allowed (generally 12 months from the release request, with extensions possible), and tell the ATO within 28 days.

Queensland has its own first home buyer grants and duty concessions. Check the current rules with the Queensland Revenue Office. If you also want help with the loan, our lending page explains how home loans are arranged through our credit representative.

Want this applied to your situation? Book a no-obligation chat with our team on Edward Street.

Quick answers

How much can I save with the First Home Super Saver scheme?

Up to $15,000 of voluntary contributions a year count, and up to $50,000 in total, plus deemed earnings.

Do employer super contributions count for FHSS?

No. Only voluntary contributions count, such as salary sacrifice, personal deductible or after-tax contributions.

Can couples both use FHSS?

Yes. Each eligible person has their own limits, so a couple buying together may each use the scheme.

Sources

General advice warning. This article is general information only and does not take into account your objectives, financial situation or needs. Rules and thresholds change; check the sources above. Past performance is not a reliable indicator of future performance. Consider the relevant PDS and our Financial Services Guide and seek personal advice before acting. FinForce is authorised under Financial Force Pty Ltd AFSL 238337. Shay has been authorised since 18 October 2011.