First Home Super Saver Scheme (FHSS) Explained With Real Numbers

Introduction: Why Saving for a Home Deposit in Australia Feels Impossible

Saving for a first home deposit in 2026 is one of the most financially demanding things a young Australian can do.

Sydney’s median house price hovers above $1.4 million. Melbourne, Brisbane, and Perth are not far behind. Even if you’re targeting a unit or townhouse in an outer suburb, you’re likely looking at $550,000 to $800,000 — which means a 10% deposit of $55,000 to $80,000 before you’ve even touched stamp duty, legal fees, or the inspection costs.

For most working Australians, hitting that number on a regular salary while also paying rent takes years of discipline. Every tax dollar you lose along the way — every $1,000 that went to income tax instead of your savings account — is another few days’ delay before you get your keys.

The First Home Super Saver Scheme exists to fix exactly that.

The FHSS lets you direct voluntary contributions into your superannuation fund at a tax rate of just 15%, rather than your marginal income tax rate (which could be 30%, 37%, or even 45%). You then withdraw those contributions — plus deemed earnings calculated by the ATO — as your home deposit when you’re ready to buy.

It sounds complicated. It isn’t. And when you see the real numbers, the case for using it becomes hard to ignore.

This guide will walk you through everything: exactly how it works, what you can contribute, how much you’ll save in tax, step-by-step how to apply, and the common mistakes that trip people up.

Note: This article is general information only. The FHSS involves tax and superannuation rules that interact with your personal financial position. We strongly recommend speaking with a registered financial adviser or tax agent before making contribution decisions.

What Is the First Home Super Saver Scheme (FHSS)?

The First Home Super Saver Scheme is an Australian Government initiative, administered by the Australian Taxation Office (ATO), that allows eligible first home buyers to save for a deposit inside their superannuation fund — and then withdraw those savings when they’re ready to buy.

It was launched on 1 July 2017, and expanded significantly in July 2022 when the lifetime withdrawal cap was increased from $30,000 to $50,000 per person.

The core idea in one paragraph

Instead of saving your deposit in a regular bank account — where your savings come from after-tax dollars and any interest earned is taxed at your marginal rate — you redirect voluntary contributions into super. Contributions taxed at the super rate of 15% (instead of your income tax rate) means more money going in per dollar earned. When you withdraw under FHSS, the ATO adds deemed earnings and applies a 30% tax offset on the assessable amount, so the effective tax on the way out is also low.

The net result: the same gross income produces a bigger deposit.

What the FHSS is not

A lot of people come to this scheme with the wrong mental model. To be clear:

How the FHSS Scheme Works

Step 1: Make voluntary super contributions

You make voluntary contributions to your superannuation fund above and beyond what your employer is already paying. There are two types of eligible contributions:

Concessional contributions (pre-tax):

Non-concessional contributions (after-tax):

Step 2: The money earns deemed returns in your fund

While your contributions sit in your super fund, they’re invested alongside the rest of your balance. When the ATO works out how much you can withdraw, it doesn’t use your fund’s actual investment return — it applies a “deemed earnings rate” based on the ATO’s Shortfall Interest Charge (SIC) rate.

As of 2026, the SIC rate is approximately 6.61% per annum (it is updated quarterly, based on the 90-day bank bill rate plus 3 percentage points). This deemed rate is then applied to your eligible contributions for the period they’ve been in your fund.

Why does this matter? If your fund earns more than 6.61%, the extra stays in your super — which is great for retirement. If your fund earns less, you still receive the higher deemed rate on your FHSS withdrawal — which is good for your deposit.

Step 3: Request an FHSS determination

When you’re ready to buy, you apply to the ATO for an “FHSS determination” — a formal document that tells you exactly how much you’re eligible to withdraw, including the deemed earnings component.

Critical rule: You must request this determination before you sign a contract to purchase or construct a home. If you sign first, you become ineligible. There are no exceptions to this rule.

Step 4: Request the release of funds

Once you have your determination, you request the ATO to release the funds. The ATO instructs your super fund to transfer the money to the ATO, which then withholds tax and pays you the net amount.

Step 5: Buy your property within 12 months

You must sign a purchase contract within 12 months of requesting your release. The ATO can grant a 12-month extension in some circumstances, but this is not guaranteed.

FHSS Eligibility Rules

Age

You must be at least 18 years old to request a release under FHSS. There is no upper age limit — the rule is that you must never have owned residential property in Australia.

First home buyer status

You must never have owned residential property in Australia — including as an investment property or inherited property — either individually or jointly. An important exception applies: if you’ve previously owned property but lost it due to financial hardship (as determined by the Commissioner of Taxation), you may still be eligible.

Citizenship and residency

You must be an Australian citizen, permanent resident, or temporary resident at the time of contributing. However, given the owner-occupancy requirement at settlement, the scheme is practically limited to those who will be living in Australia when they buy.

Owner-occupancy intent

You must intend to occupy the property you purchase as your principal place of residence as soon as practicable after settlement, and continue to do so for at least six months in the first 12 months after it becomes practical to do so.

FHSS scheme once-per-lifetime rule

You can only use the FHSS scheme once. There is no “re-set.” If you withdraw and don’t buy a property, and then re-contribute and buy later, you cannot make a second FHSS withdrawal. Plan carefully.

Previous FHSS requests

You must not have previously requested a release of amounts under the FHSS scheme.

FHSS Contribution Limits Explained

Understanding the contribution limits is essential to maximising — and not accidentally breaching — the scheme.

Annual limit

You can designate up to $15,000 per financial year in eligible voluntary contributions for FHSS purposes. This applies regardless of whether they are concessional or non-concessional.

Lifetime limit

The total contributions eligible for FHSS release is $50,000 per person, covering voluntary contributions made from 1 July 2017 onwards. This was increased from $30,000 in July 2022.

The concessional contributions cap interaction

This is where it gets technical — and where many people make mistakes.

Your concessional contributions (salary sacrifice + personal deductible contributions) count toward the annual concessional contributions cap of $30,000 per financial year (from 1 July 2024). This cap includes your employer’s Super Guarantee (SG) contributions.

So if your employer pays 11.5% SG on a $100,000 salary, that’s $11,500 going in. You then have $18,500 of concessional cap remaining — but the FHSS annual limit of $15,000 kicks in first, so your effective FHSS maximum is $15,000 per year.

Example:

SalaryEmployer SG (11.5%)Remaining Concessional CapFHSS Annual Maximum
$70,000$8,050$21,950$15,000
$100,000$11,500$18,500$15,000
$150,000$17,250$12,750$12,750 ⚠️

Note: For a $150,000 salary earner, the concessional cap ($30,000 − $17,250 = $12,750) is the binding constraint, not the $15,000 FHSS annual limit. Exceeding the concessional cap triggers excess contributions tax.

Pro Tip: Always calculate how much concessional cap you have remaining before setting up a salary sacrifice arrangement. Your payroll team or HR department can confirm the employer SG figure. A tax agent can confirm your available cap.

Employer SG contributions — NOT eligible

Your employer’s compulsory Super Guarantee contributions cannot be included in an FHSS withdrawal. Only voluntary contributions you make yourself (via salary sacrifice or after-tax) count.

FHSS Tax Benefits Explained With Real Numbers

This is where the scheme starts to make real sense. Let’s run through several realistic scenarios.

How the tax maths works

On the way in:

On the way out:

Scenario 1: Young Couple, Moderate Incomes ($75k each)

Profile: Sam and Alex each earn $75,000/year and both salary sacrifice $15,000/year into super for FHSS. Three years of contributions each.

DetailSamAlex
Annual salary$75,000$75,000
Marginal tax rate32.5% + 2% Medicare32.5% + 2% Medicare
Annual FHSS contribution$15,000$15,000
Tax on contribution (in super)15% = $2,25015% = $2,250
Tax saving per year vs bank($34.5%−15%) × $15,000 = $2,925$2,925
Total tax saving over 3 years$8,775$8,775
Total contributions (3 years)$45,000$45,000
Net contributions released (85%)$38,250$38,250
Deemed earnings (≈6.61% p.a., 3 yr est.)~$4,800~$4,800
Total available for withdrawal~$43,000~$43,000
Combined deposit (both together)~$86,000

Total household tax saving: ~$17,550 over 3 years — money that would otherwise have gone to the ATO.

Scenario 2: Single Buyer, Mid-Income ($90,000)

Profile: Jordan earns $90,000/year, salary sacrifices $12,000/year for 4 years.

YearContributionTax in super (15%)Tax saved vs marginal (34.5%−15% = 19.5%)
Year 1$12,000$1,800$2,340
Year 2$12,000$1,800$2,340
Year 3$12,000$1,800$2,340
Year 4$12,000$1,800$2,340
Total$48,000$7,200$9,360 saved

Net contributions released: 85% × $48,000 = $40,800
Deemed earnings over 4 years (est. 6.61% p.a.): ~$6,400
Estimated total withdrawal: ~$47,200

On withdrawal, Jordan’s effective tax rate is (34.5% + 2% − 30%) = 6.5%
 Tax on the $47,200 withdrawal ≈ $3,068
Net amount available for deposit: ~$44,132

Compared to saving the same $48,000 gross in a bank account at 32.5% marginal tax rate, Jordan would have had approximately $6,000–$7,000 less — plus paid tax on any interest earned. The FHSS delivers a materially better outcome.

Scenario 3: Higher-Income Earner ($140,000)

Profile: Morgan earns $140,000/year (marginal rate: 37% + 2% Medicare = 39%). Morgan salary sacrifices $12,750/year (remaining concessional cap after employer SG of $16,100) for 4 years.

Annual tax saving: ($39% − 15%) × $12,750 = $3,060/year
 Over 4 years: $12,240 in tax savings from contributions alone

On withdrawal at 39% marginal rate minus 30% offset = 9% effective rate
 Total contributions: $51,000 → capped at $50,000 lifetime (so Year 4 is a partial year)
Released amount: 85% × $50,000 = $42,500 + deemed earnings ≈ $9,000 = ~$51,500
 Tax on withdrawal at 9%: ~$4,635
Net available for deposit: ~$46,865

Higher earners benefit the most from the FHSS because the gap between their marginal tax rate (37%) and the 15% contributions tax is widest.

Scenario 4: Lower-Income Earner ($52,000)

Profile: Riley earns $52,000/year (marginal rate: 19% + 2% Medicare = 21%). Contributes $10,000/year for 3 years using after-tax (non-concessional) contributions, with a Notice of Intent to Claim lodged to treat them as concessional.

Annual tax saving: (21% − 15%) × $10,000 = $600/year

Wait — that’s a smaller saving. Here’s the kicker: on withdrawal, the effective tax rate is 21% + 2% − 30% = -7% — meaning Riley actually gets a refund at tax time. The 30% tax offset more than covers Riley’s marginal rate.

This makes the FHSS particularly attractive for lower-income earners: the withdrawal tax offset essentially means they pay near-zero tax on the released amount.

Pro Tip: If your taxable income in the year of withdrawal is low — say, because you’ve taken time off between jobs to look for a home — your effective FHSS withdrawal tax could be minimal or even negative (i.e., a refund). Timing your withdrawal strategically can improve your outcome. Speak to a tax agent.

Salary Sacrifice Example — The Power of Pre-Tax Dollars

Sophie earns $85,000 and wants to save $15,000 for her deposit this year.

Option A: Save in a bank account

Option B: Salary sacrifice $15,000 into super (FHSS)

So Option B gives her approximately $13,800 vs Option A’s $15,000 — but here’s the critical difference: to put $15,000 in a bank account, Sophie needed to earn $22,727 gross. To get $13,800 into her deposit via FHSS, she only needed to set aside $15,000 gross. The overall tax efficiency is significantly better.

Over 3 years using FHSS, Sophie accumulates approximately $41,400–$43,000 for her deposit versus spending ~$22,727/year gross to save the same amount via a bank account.

Step-by-Step: How to Use the FHSS Scheme

Step 1: Confirm eligibility

Check that you meet all eligibility criteria — never owned property in Australia, intend to live in the purchased property, aged 18+, Australian citizen or permanent resident.

Step 2: Set your savings target and timeline

Decide how much you want to withdraw. The maximum is $50,000 in contributions (plus deemed earnings). If you’re contributing $15,000/year, you’ll hit the cap in 3 full years plus a partial 4th year. Set a target date — ideally aligned with when you expect to be ready to buy.

Step 3: Arrange voluntary contributions

Two main methods:

Salary sacrifice: Contact your payroll/HR department to set up a formal salary sacrifice arrangement. Specify the additional amount per pay cycle. Make sure the total (employer SG + your salary sacrifice) stays within the $30,000 concessional cap.

Personal deductible contributions: Transfer money from your bank account directly to your super fund. Then, before you apply for an FHSS determination, lodge a “Notice of Intent to Claim a Tax Deduction” with your super fund. This step is mandatory — miss it and your contribution is treated as non-concessional.

Step 4: Track your contributions

Keep a record of every eligible FHSS contribution by financial year. Your super fund’s annual statement and the ATO’s MyGov portal (via the “First Home Super Saver Scheme” section) will show your accumulation. The ATO tracks contributions once reported by your fund.

Step 5: Apply for an FHSS determination

When you’re ready to buy — but before you sign any purchase contract — log in to MyGov, go to the ATO section, and request an FHSS determination. The ATO will tell you exactly how much you’re eligible to withdraw, including deemed earnings. The determination is usually issued almost immediately.

Step 6: Request the release of funds

Once you have your determination, submit a release request through MyGov. The ATO instructs your super fund to send the money to the ATO, which withholds tax and pays you the net amount. This typically takes 15–25 business days.

Step 7: Sign a contract to purchase your property

You must sign a contract to purchase or construct a property within 12 months of the ATO releasing your funds. If you need more time, apply to the ATO for an extension (up to a further 12 months in some circumstances — but this is discretionary).

Step 8: Move in and occupy the property

You must occupy the property as your principal residence as soon as practicable after settlement, for at least 6 months in the first 12 months.

FHSS Application Checklist:

FHSS Withdrawal Rules Explained

The release amount formula

What you actually receive is not simply the sum of your contributions. Here’s how the ATO calculates your release amount:

For concessional contributions (salary sacrifice / personal deductible):

For non-concessional contributions (after-tax, no deduction claimed):

Tax on withdrawal

The concessional component and its associated earnings are assessable income in the financial year you request the release (not when you receive the money). The ATO:

  1. Withholds tax at your marginal rate minus 30% (or at a flat 17% if your rate can’t be determined)
  2. You then include the FHSS amount in your tax return
  3. If too much was withheld, you get a refund; if not enough, you pay the difference

Non-concessional contributions released under FHSS are not assessable — no additional tax.

What if you don’t end up buying?

If you withdraw FHSS funds but do not sign a contract to purchase within the required timeframe, you must either:

  1. Re-contribute the amount to super (after grossing it up for tax) within 12 months of it being released, OR
  2. Include the full amount in your assessable income and pay an additional 20% FHSS tax on top

This is a significant penalty. Don’t withdraw until you’re genuinely ready and confident about purchasing.

Property purchase deadline

You have 12 months from the date of release to sign a purchase contract. The ATO may grant an extension up to a total of 24 months (12 months + 12 months extension), but only in limited circumstances. The extension is not automatic.

FHSS vs Traditional Saving: A Real Comparison

FactorFHSS (Salary Sacrifice)Regular Savings AccountHigh-Interest Savings Account
Tax on contributions15%Your marginal rate (19%–45%)Your marginal rate (19%–45%)
Tax on earnings15% SIC deemedYour marginal rate on interestYour marginal rate on interest
Effective tax on withdrawalMarginal − 30% offsetN/AN/A
Annual contribution limit$15,000UnlimitedUnlimited
Lifetime limit$50,000UnlimitedUnlimited
Access to fundsOnly via ATO processInstantInstant (with notice periods)
Can be used for non-propertyNoYesYes
Risk to depositLow (deemed rate protects)Low (cash)Low (cash)
Government-backed schemeYesNoNo

The verdict: For tax savings, FHSS wins clearly — especially for anyone in the 32.5% or higher tax bracket. For flexibility and liquidity, a savings account wins. The smart approach is often to use FHSS for the tax-advantaged portion of your savings and maintain a separate liquid savings buffer for costs you’ll need at settlement (stamp duty, legal fees, etc.).

Advantages & Disadvantages of the FHSS

Advantages

1. Genuine tax savings. The gap between your marginal tax rate and the 15% contributions tax is pure savings. On $15,000/year for a person on 34.5% marginal rate, that’s $2,925/year — or $8,775 over three years — that stays in your deposit rather than going to the ATO.

2. Tax-advantaged earnings. Investment earnings inside super are taxed at a maximum of 15% (and the deemed SIC rate is currently around 6.61%, which is competitive with or better than many high-interest savings accounts).

3. Forced savings discipline. Once you’ve set up salary sacrifice, the contributions happen automatically. Many first home buyers find this forced structure helps them save more consistently than keeping money in an accessible account where it can be spent.

4. 30% withdrawal tax offset. Even on the way out, the scheme is designed to be tax-efficient — especially for lower-to-middle income earners where the offset more than covers their marginal rate.

5. Couples can stack. Two eligible buyers can each withdraw up to $50,000, potentially contributing $100,000 (plus deemed earnings) to their combined deposit.

Disadvantages

1. Complex rules with severe timing penalties. The requirement to get an FHSS determination before signing a contract is strict. Miss it and you may become ineligible. The rules around re-contribution if you don’t purchase are punishing.

2. Annual and lifetime caps. You can only extract so much. $50,000 per person is a useful supplement to a deposit, but in Sydney or Melbourne where median prices are $900,000+, you’ll still need substantial additional savings.

3. Locked in super until you’re ready to buy. Once in super, you cannot access these funds for any other purpose (until retirement age). If your plans change significantly, your options are limited.

4. Deemed earnings may be less than actual super returns — or more. The SIC-based deemed rate is neither your fund’s actual return nor a guaranteed rate of return. In strong market years, your fund may earn significantly more than the deemed rate and the excess stays locked in super. In poor years, you still get the deemed rate applied — but your fund may have lost value.

5. Only usable once. The once-per-lifetime rule means there are no second chances. If you withdraw and circumstances prevent you from buying, the financial penalty is significant.

Common FHSS Mistakes to Avoid

Mistake 1: Exceeding the concessional contributions cap

If your salary sacrifice pushes your total concessional contributions (employer SG + your contributions) above $30,000 for the year, the excess is taxed at your marginal rate — wiping out the tax benefit and then some. Always account for your employer’s SG before setting up salary sacrifice.

Mistake 2: Signing a contract before getting your FHSS determination

This is an absolute killer error. If property ownership transfers to you before you’ve received an FHSS determination, you permanently lose eligibility. Request your determination before making any offer that could quickly proceed to unconditional.

Mistake 3: Forgetting the Notice of Intent for personal deductible contributions

If you’re making personal contributions and want them treated as concessional, you must lodge a “Notice of Intent to Claim a Tax Deduction” with your fund before applying for an FHSS determination. Miss this step and your concessional contribution becomes non-concessional — no tax deduction, and only a marginal tax benefit on the way in.

Mistake 4: Withdrawing too early without a real purchase plan

Withdrawing FHSS funds starts a 12-month clock ticking. If you’re not genuinely ready to buy within that window, either don’t withdraw yet, or prepare for the re-contribution penalty or the 20% additional tax.

Mistake 5: Not including FHSS amounts in your tax return

The released concessional amounts and associated earnings must be declared in your tax return for the year of release. The ATO withholds tax upfront, but the final amount is reconciled at tax time. Failing to declare can result in an ATO correction, interest, or penalties.

Mistake 6: Ignoring super fund fees and investment option

The money sits in your super fund while you save. If your fund has high fees or your investment option is ultra-conservative, you may be leaving real returns on the table. The deemed rate (≈6.61% p.a.) is applied for FHSS purposes, but the difference between what your fund actually earns and the deemed rate stays in (or is taken from) your super balance. Review your fund’s fees and default investment option.

Advanced FHSS Strategies

Strategy 1: Salary sacrifice optimisation

Set your salary sacrifice contribution to exactly $15,000 per year (or the maximum available concessional cap minus employer SG). Don’t guess — calculate precisely. Use the ATO’s online “First Home Super Saver Scheme” calculator in MyGov, or ask your tax agent to run the numbers.

For those approaching the $30,000 concessional cap: consider making non-concessional contributions (no tax deduction, but still eligible for FHSS release and the 30% withdrawal offset) to top up to $15,000 per year if you can’t use full concessional contributions.

Strategy 2: Couples contribution strategy — up to $100,000 combined

Each eligible person can withdraw up to $50,000 under FHSS. Two partners contributing $15,000/year each for 3+ years can accumulate approximately $50,000+ each — potentially $100,000+ combined for a joint deposit, before their regular savings.

This strategy works even if the incomes are quite different. The lower-income partner still benefits from the 30% withdrawal offset, and in some cases may actually receive a tax refund at withdrawal.

Strategy 3: Timing contributions before 30 June

FHSS contributions must be made before 30 June to count for that financial year. If you’re approaching your target amount, make sure your final contribution is received by your fund by 30 June — not just sent. Allow at least one week’s buffer for processing. A contribution received on 1 July counts for the next financial year.

Strategy 4: Combining FHSS with other first home buyer schemes

The FHSS can be used alongside:

Strategy 5: Personal deductible contributions in a high-income year

If you receive a bonus, receive a large freelance payment, or otherwise have a higher-than-usual income year, consider making a lump-sum personal deductible contribution of up to $15,000 (or remaining concessional cap) before 30 June. You get the full tax deduction in a high-income year, and the contribution counts toward your FHSS cap. This is one of the best uses of a windfall for a first home buyer.

How AI & Fintech Are Changing Home Deposit Saving

The mechanics of saving for a home deposit haven’t changed much — but the tools available to help you do it have transformed dramatically.

AI-powered budgeting tools like those now integrated into major banking apps can automatically categorise your spending, project your savings trajectory, and alert you when you’re off-track relative to a deposit goal. Some can even suggest adjustments — “if you reduced dining out by $200/month, you’d hit your target four months earlier.”

FHSS-specific calculators (several free ones exist online in 2026) can model your exact scenario: income, contribution amount, years to saving, tax bracket, deemed earnings, and net deposit amount after withdrawal tax. Running these numbers takes about 3 minutes and removes the guesswork.

Digital super contribution platforms let you initiate salary sacrifice changes, review FHSS contribution history, and track deemed earnings through a single interface. The ATO’s MyGov portal now shows an FHSS running total in near-real time once contributions are reported by your fund.

Mortgage broker platforms increasingly integrate FHSS modelling alongside pre-approval estimates — so when you sit down with a broker, they can tell you simultaneously how much you can contribute via FHSS, what your likely deposit will be in 3 years, and what that means for your borrowing capacity and LMI position.

The future is likely to see tighter integration between FHSS tracking, property search platforms, and home loan pre-approval — a seamless pathway from “I’m starting to save” to “I’m ready to buy.”

Frequently Asked Questions

1. What is the First Home Super Saver Scheme?

The FHSS is an Australian Government scheme that lets eligible first home buyers save for a deposit inside their superannuation fund at a concessional tax rate, then withdraw those contributions (plus deemed earnings) to purchase their first home.

2. How much can I withdraw under the FHSS?

You can withdraw up to $50,000 in voluntary contributions, plus associated deemed earnings. The annual cap is $15,000 in eligible contributions per financial year.

3. Can I withdraw my employer’s Super Guarantee contributions?

No. Only voluntary contributions you make yourself — via salary sacrifice or personal contributions where you claim a tax deduction — count toward your FHSS withdrawal cap.

4. What is the deemed earnings rate?

The ATO applies a “deemed earnings rate” based on the Shortfall Interest Charge (SIC) rate — currently approximately 6.61% per annum (updated quarterly, based on the 90-day bank bill rate plus 3%). This is used to calculate the earnings component of your FHSS withdrawal, regardless of your fund’s actual return.

5. How is the FHSS withdrawal taxed?

Concessional contributions and their associated earnings are assessable income in the year of release. The ATO applies your marginal tax rate minus a 30% tax offset. For most first home buyers, the effective withdrawal tax rate is very low — or even negative (a refund) for lower-income earners.

6. Can couples both use the FHSS?

Yes. Each eligible person can withdraw up to $50,000. Two eligible buyers on the same property can each withdraw their maximum, potentially combining $100,000+ (including deemed earnings) for a joint deposit.

7. What happens if I don’t buy a property after withdrawing?

You must either re-contribute the released amount (grossed up for tax) to super within 12 months, or include the full amount in your assessable income and pay an additional 20% FHSS tax. There are no penalty-free exits once you’ve withdrawn.

8. Can I use FHSS and the First Home Guarantee (FHBG) together?

Yes. The FHSS can fund your 5% deposit, which you then use to access the FHBG to avoid LMI. The two schemes are designed to complement each other.

9. Do I need to request an FHSS determination before signing a contract?

Yes — this is one of the most important rules. You must receive your FHSS determination from the ATO before property ownership transfers to you. If you sign a contract and settlement occurs before getting your determination, you are no longer eligible.

10. Can I make non-concessional contributions and use them for FHSS?

Yes. After-tax contributions where you do not claim a tax deduction (non-concessional contributions) are eligible for FHSS. You can withdraw 100% of these (vs 85% for concessional). They don’t get the same tax-in benefit, but the 30% withdrawal offset still applies to associated earnings.

11. How long do I have to buy a property after withdrawing?

You must sign a purchase contract within 12 months of the ATO releasing your FHSS funds. The ATO may grant a further 12-month extension in some circumstances, but this is not automatic.

12. Can I use FHSS for an investment property?

No. You must intend to occupy the property as your principal place of residence as soon as practicable after settlement, and live there for at least six months in the first 12 months.

13. What if I’ve already made voluntary super contributions — can they count toward FHSS?

Yes, provided they were made from 1 July 2017 onwards and were voluntary contributions (not employer SG). Contributions made before you became aware of FHSS can still be counted, up to the annual ($15,000) and lifetime ($50,000) caps.

14. Is the FHSS available through self-managed super funds (SMSFs)?

Yes, but contributions made to an untaxed super fund are not eligible. SMSF members can access FHSS, but given the complexity and administration requirements, professional advice is strongly recommended before proceeding.

15. Is FHSS worth it for someone on a low income?

Yes — and often especially so. The 30% withdrawal tax offset means that if your marginal tax rate at withdrawal is under 30%, you may receive a tax refund. The tax-in benefit (15% vs your marginal rate) is smaller for low-income earners, but the withdrawal treatment is very favourable.

16. Does the FHSS affect Centrelink payments?

FHSS withdrawals are generally not counted as income for Centrelink means-testing purposes. However, this is complex and depends on the specific benefit. If you receive Centrelink payments, check with a financial counsellor or Services Australia before withdrawing.

17. Can I open a new super account specifically for FHSS contributions?

Yes. If your current fund is an untaxed or unsuitable fund, you can open an account with an eligible fund specifically for FHSS contributions. The contributions stay in that fund until the ATO instructs a release.