First Home Super Saver Scheme (FHSS): Save Your Deposit in Super (2026)

What the FHSS scheme actually is

The First Home Super Saver scheme lets you save part of your first-home deposit inside your super fund and withdraw it later. You make extra voluntary contributions, the money sits in super, and when you are ready to buy you ask the ATO to release those contributions plus an amount of earnings.

The reason to bother is tax. Super is a lightly taxed environment, so for most people money put aside this way grows faster than the same money saved in an everyday bank account. It is a savings vehicle with a tax advantage, not a cash grant, and it sits alongside the other first home buyer schemes rather than replacing them.

How the FHSS scheme works

There are two types of voluntary contribution you can make, and both can count towards the scheme:

• Concessional (before-tax) contributions. Usually made by salary sacrificing through your employer, or by claiming a tax deduction on a personal contribution. These are taxed at 15% inside super rather than at your marginal rate, which is where most of the benefit comes from.
• Non-concessional (after-tax) contributions. Money you put in from your take-home pay, where you have already paid income tax. These can also count towards the scheme, within the limits.

What does not count is the compulsory super your employer pays under the super guarantee, or any contributions made by a spouse on your behalf in the usual way. Only your own eligible voluntary contributions can be released under the scheme.

When you withdraw, the ATO does not just hand back the exact dollars you put in. It releases your eligible contributions plus an amount of deemed (associated) earnings it calculates using a set rate, rather than the actual investment return of your fund.

The tax advantage explained

The whole case for the scheme rests on one idea: concessional contributions are taxed at 15% going into super, which for most working people is well below their marginal income tax rate. Save the same money in a normal account and you save it out of after-tax income, then pay tax on the interest as well.

So a buyer on a higher marginal rate can get more of their deposit working for them by routing it through super first. When the money comes back out under the scheme, the ATO applies its own withholding and concessional treatment to the released amount, which is generally still better than having earned and saved it the ordinary way.

It works best for people on a solid marginal tax rate who are disciplined savers and confident they are going to buy. It does much less for someone on a low rate, or someone who might not end up purchasing at all, because the money is then locked in super for no real gain.

Contribution and withdrawal limits

The scheme is capped in two ways, and both matter when you plan your contributions:

• An annual limit on how much of your voluntary contributions can count towards the scheme in a single financial year.
• A total limit on the maximum amount of voluntary contributions you can ever release across all years combined.

On top of those scheme caps, your contributions still count towards the normal annual super contribution caps, so salary sacrificing a large amount can have other consequences. Because all of these figures are adjusted over time, this guide deliberately does not quote a dollar amount. Check the current annual and total FHSS limits, and the standard contribution caps, on the ATO website before you start.

Getting a determination and release through the ATO

You do not deal with your super fund directly to use the scheme. You go through the ATO, usually via myGov, and the process has two stages:

1. Request an FHSS determination. This tells you the maximum amount you are allowed to release based on your eligible contributions and the deemed earnings. You can request a determination to check your position before you commit to buying.
2. Request a release. Once you are ready, you ask the ATO to release the determined amount. The ATO instructs your fund to send the money, withholds some tax, and pays the balance to you.

The released money is paid to you, not to the vendor or your conveyancer. You then use it as part of your deposit and settlement funds in the normal way. After a release you generally have a set window in which to sign a contract to buy or build, or to notify the ATO, so you do not want to release the money years before you are ready.

The timing trap to avoid

This is where first home buyers most often come unstuck. The order of operations matters:

• Request your determination before you sign a contract. The rules around when you can validly apply are strict, and signing a contract at the wrong moment can affect your ability to use the scheme.
• Allow time for the release. Processing and payment take time, so the cash will not be in your account the day you ask. Do not line up a settlement assuming an instant payout.
• Mind the post-release deadlines. After the money is released there is a limited window to sign a contract to buy or build, with the option to ask for an extension or to notify the ATO if your plans change. Miss it and there can be tax consequences.

The simplest rule: get your determination, plan the release into your timeline well ahead, and confirm the current sequence with the ATO before you exchange. For how this fits the rest of your deposit, see our guide on how much deposit you need to buy a house.

Using the scheme as a couple

The scheme is worked out per person, not per property. If two eligible first home buyers are purchasing together, each can make their own voluntary contributions and apply for their own determination and release. In effect, a couple can put roughly double through the scheme compared with a single buyer, as long as each partner meets the eligibility rules in their own right.

Each person applies separately through their own myGov and ATO account. The amounts are not pooled by the ATO, so plan both sets of contributions with the per-person caps in mind.

Is the FHSS scheme worth it?

For a disciplined saver on a reasonable marginal tax rate who is confident they will buy, the scheme usually leaves you with a bigger deposit than saving the same money in a regular account. The tax saving is the whole point, and for many first home buyers it is genuinely worth having.

It is less compelling when:

• You are on a low marginal tax rate, so the 15% concessional rate saves you little
• You might not buy at all, leaving the money locked in super
• You need the funds to be instantly accessible for other reasons
• Salary sacrificing would push you over your normal contribution caps

The scheme also pairs with the other first home buyer programs. It is a savings strategy, while the First Home Guarantee helps you buy with a smaller deposit and no LMI, and state grants and stamp duty concessions sit on top. Our national first home buyer guide shows how the pieces fit together. Because everyone’s tax position differs, get personal financial or tax advice before you commit.