First home buyers
How to apply for the First Home Super Saver scheme
Learn how to apply for the First Home Super Saver scheme: request an ATO determination, make a release request, and the timing and tax rules that apply.
To apply for the First Home Super Saver scheme, you log in to ATO online services through myGov, request a First Home Super Saver determination, then submit a single release request to have your eligible voluntary super contributions and associated earnings paid to you. You do this when you are ready to buy or build your first home. Whether the scheme suits you, and how much you can release, depends on your circumstances and lender criteria.
This guide explains the First Home Super Saver application step by step: how a First Home Super Saver release request works, what an FHSSS release request is, the limits on how much you can withdraw, the timing rules that decide when you must sign a contract, and the tax that applies. The First Home Super Saver scheme is run by the Australian Taxation Office (ATO), which sets the rules and assesses your eligibility. The figures and steps below come from the ATO. Rules and amounts can change, so confirm the current detail on the ATO website before you act.
For how the scheme sits alongside your home loan, see First home buyers.
What the First Home Super Saver scheme is
The First Home Super Saver (FHSS) scheme lets you make personal voluntary contributions into your super fund to help save for your first home, then release those contributions plus an amount of associated earnings when you are ready to buy. It does not let you withdraw your whole super balance. Only eligible voluntary contributions count, not the compulsory super your employer pays.
Two limits cap what counts towards the scheme. You can have up to 15,000 dollars of eligible voluntary contributions counted in any one financial year, and up to 50,000 dollars counted across all years. When the ATO works out your maximum release amount, 100 percent of your eligible non-concessional (after-tax) contributions and 85 percent of your eligible concessional (before-tax) contributions count, plus associated earnings on both. Associated earnings are a notional amount the ATO calculates at the shortfall interest charge rate, so they differ from the actual earnings in your super fund.
Only voluntary contributions made on or after 1 July 2017 are eligible. Compulsory super guarantee contributions from your employer cannot be released under the scheme.
Who may qualify
Eligibility is set by the ATO and assessed on an individual basis. To use the scheme you generally need to meet all of these tests.
- You are 18 years or older when you request a determination. The determination can still include eligible contributions you made before you turned 18.
- You are a first home buyer who has never owned property in Australia. This includes an investment property, vacant land, commercial property, a lease of land, or a company title interest in land.
- Your name is on the title of the property you buy.
- You do not already have a completed release request from an earlier determination.
Because eligibility is individual, couples, siblings or friends can each access their own eligible contributions for the same property. If one person has previously owned a home, that does not stop another eligible person applying. If you have owned property before, you may still qualify if the ATO determines you have suffered an FHSS financial hardship that caused the loss of all your property interests.
How to apply: the steps
When you are ready to withdraw, you first apply to the ATO for a determination, then request a release. There are four steps.
- Request a First Home Super Saver determination through ATO online services. Log in through myGov, then select Super, then Manage, then First home saver. Most of your contributions are pre-filled from what your super fund reports, but check the details are correct before you submit, because errors can delay your release. You need a determination before you can request a release, and you can request a determination on more than one occasion.
- Request the release of your savings. Choose the determination your request is based on, then tell the ATO the amount you want released, the fund or funds to release it from, and the bank account to pay it to.
- Sign a contract to buy or build your home and notify the ATO. You can also recontribute the amount instead if your plans change.
- Receive your FHSS amount. The ATO issues a release authority to your fund, withholds the appropriate tax, and pays the rest to you.
A key rule sits behind step 1. You must request a determination before ownership of any real property transfers to you, which is generally after settlement of a property contract. Once ownership has transferred, you can no longer request a determination, so do not leave it until after you settle.
How much you can release
The amount you can release is your maximum release amount shown on your determination, which reflects the yearly and total limits and the associated earnings. The maximum contributions counted are 15,000 dollars in any one financial year and 50,000 dollars across all years, with 100 percent of non-concessional and 85 percent of concessional contributions counting towards the release calculation.
You can request a release of any amount up to your maximum release amount. You can only submit one release request, so include the full amount you want released. Once the ATO starts processing your payment you cannot cancel or amend it, even if you originally asked for less. After you make your release request, it may take between 15 and 20 business days for the money to reach you, so build that timing into your plans.
If you are weighing up how much deposit you are working towards, it helps to see what a lender might lend you alongside your FHSS savings. To estimate this, try the borrowing power calculator.
Borrowing power calculator
Open the calculator to run your own numbers.
For how lenders assess what you can afford, see Borrowing power first home buyer.
The timing rules that matter most
The FHSS scheme has firm timing rules, and the dates depend on when your determination was made. The rules below apply to a determination made on or after 15 September 2024, which covers most recent applicants. Different periods apply to older determinations, so check your own dates.
You can make a release request before you sign a property contract, or within 90 days of signing a contract. From there, you have a period that starts 90 days before your release request and ends 12 months after it to sign a contract to buy or build a home, or to recontribute the released amount to your super fund. The ATO may grant a further 12 months, up to a maximum of 24 months after your release request. You do not need to apply for the extension, and the ATO will generally grant it and notify you. If you sign a contract, you must notify the ATO within 90 days of signing.
If you still have not signed a contract by the end of the 24 month period, you must do one of two things. You either recontribute an amount at least equal to your assessable released amount, less any tax withheld, as a non-concessional contribution. Or you keep the released amount and pay FHSS tax, a flat tax of 20 percent of your assessable released amount.
Request your determination before ownership of any property transfers to you, and make your release request within 90 days of signing a contract for a determination made on or after 15 September 2024. Miss the timing rules and you may have to recontribute the money or pay FHSS tax.
How the released amount is taxed
When the ATO receives your released amounts, it withholds tax before paying you. The rate is your expected marginal tax rate including the Medicare levy, less a 30 percent tax offset, or 17 percent if the ATO cannot estimate your expected marginal rate.
You must include the assessable released amount and the tax withheld, both shown on your payment summary, in your tax return for the year you requested the release. This can be a different year from the one in which you receive the money. The assessable amount receives a 30 percent tax offset when your return is assessed. How much tax you pay overall depends on your income and circumstances, so it is worth getting advice before you commit.
How the scheme fits with other help
The FHSS scheme is separate from concessions offered by state governments, and using a state first home buyer concession does not affect your ability to access the scheme. It is also separate from the First Home Guarantee, an Australian Government scheme administered by Housing Australia that can help an eligible buyer purchase with a smaller deposit. You may be able to use more than one form of help, depending on your eligibility for each.
To check who may qualify for that separate scheme, see First home guarantee eligibility. To understand how lenders view the savings behind your deposit, see Genuine savings explained.
One more rule shapes what you can buy. You cannot use the scheme to buy vacant land on its own, but you can use it for a contract to construct a home on vacant land, provided ownership of the land has not transferred to you before you apply for a determination. You must also genuinely intend to live in the home as soon as practicable after purchase, and occupy it for at least 6 of the first 12 months.
How the Finance Lab team can help
Lining up an FHSS release with a home loan, a deposit, and the timing rules can feel like a lot to manage at once. The team at Finance Lab can talk you through how the scheme may fit your plans, help you check the current rules with the ATO, and prepare a clean home loan application alongside it. Whether the scheme suits you depends on your circumstances and lender criteria, and we can help you confirm the detail before you make an offer.
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