Withdraw up to $50,000 per person (couples: $100,000) from your super for a first home deposit. The 15% super tax rate beats most marginal rates — here's the math.
The First Home Super Saver (FHSS) Scheme is a quietly brilliant piece of tax policy. It lets you withdraw up to $50,000 per person (couples: $100,000 combined) of voluntary super contributions for a first home deposit, and the contributions are taxed at the super rate of 15% instead of your marginal rate. For many buyers, the tax savings alone justify using it.
How the tax saving works
Most working Australians pay income tax at a marginal rate of 30%, 37% or 45%. Super contributions are taxed at 15% (when they go into super). So if you contribute $10,000 of after-tax money to super for a first home deposit, the Government refunds the difference between your marginal rate and 15% when you withdraw.
| Your marginal rate | Contribution | Super tax (15%) | Tax saving |
|---|---|---|---|
| 19% | $10,000 | $1,500 | $400 |
| 30% | $10,000 | $1,500 | $1,500 |
| 37% | $10,000 | $1,500 | $2,200 |
| 45% | $10,000 | $1,500 | $3,000 |
On the maximum $50,000 contribution at a 37% marginal rate, that's an effective $11,000 in tax savings. The money is also compounding inside super for years, which adds another layer of return.
Source: ATO, "First Home Super Saver Scheme" — ato.gov.au
How much can you contribute and withdraw?
Two caps matter:
- Concessional contributions cap: $30,000 per year (FY 2024-25 onwards). This includes employer contributions (SG + salary sacrifice) plus any personal deductible contributions. If you earn over $62,000 in 2024-25, your employer's super guarantee (11.5%) and any salary sacrifice count toward this cap.
- Non-concessional contributions cap: $120,000 per year. These are after-tax contributions from your own money.
You can withdraw up to $50,000 per person ($100,000 combined for a couple) of eligible contributions made since 1 July 2017. Withdrawals include any associated earnings on those contributions.
How to apply, step by step
- Make voluntary contributions to your super fund (above and beyond your employer's SG). You can do this via salary sacrifice or as a personal deductible contribution.
- Keep records. You'll need to demonstrate that you intend to use the money for a first home deposit. The ATO's FHSS determination is the key document.
- Request a determination from the ATO (via your myGov account linked to the ATO, or through your super fund). The ATO will tell you how much you're eligible to withdraw and the associated earnings.
- Request the withdrawal from your super fund. They will release the money to you, less the appropriate tax (15% on the concessional component).
- Use the money within 12 months for a deposit on a home purchase. If you don't, the ATO will require you to re-contribute the withdrawn amount (less tax) to your super.
The 12-month clock
You must sign a contract to buy or build a home within 12 months of the withdrawal, and you must move in within 12 months of purchase. The home must be your principal place of residence — investment properties don't qualify.
If you don't end up buying (because your plans change), the money has to go back into super as a re-contribution. You don't get to keep it as cash.
What you can stack with FHSS
FHSS combines with essentially every other low-deposit pathway:
- 5% Deposit Scheme — your super withdrawal counts toward the deposit you need to save
- Family Home Guarantee — same
- Help to Buy — your super becomes part of your 2% deposit
- State FHOG — paid at settlement, separate from your deposit
- State stamp duty concessions — separate from your deposit
The catch with timing
Voluntary contributions need to be in your super account and accounted for before you apply for the FHSS determination. The ATO can take 10-25 business days to issue the determination. Your super fund then takes another 5-10 business days to release the money. Plan for at least a month of lead time between "decide to use FHSS" and "money in your bank account."
What if you've owned property before?
You can still use FHSS if you previously owned a home, provided you no longer own it and you have not previously used the FHSS. This is one of the most under-utilised features of the scheme — second-time buyers can also use it.
The First Home Super Saver Scheme is the lowest-friction way to boost your deposit, especially for higher-income earners. If you're a couple both earning over $80K, FHSS can deliver $200,000 of deposit (with $22,000 of tax savings along the way). The hard part is patience — the contributions compound over years, not weeks.