FHSS Scheme Annual Limit — How Much Can You Contribute Each Year?
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The First Home Super Saver (FHSS) scheme allows eligible Australians to save for their first home inside superannuation — using the tax advantages of the super system. The annual contribution limit is a key constraint to understand before using the scheme.
The FHSS Annual Contribution Limit
You can contribute a maximum of $15,000 per financial year toward your FHSS goal. This limit applies to voluntary contributions — either concessional (before-tax) or non-concessional (after-tax).
The lifetime FHSS limit is $50,000 per person, increased from $30,000 in July 2022.
| FHSS limit | Amount |
|---|---|
| Annual limit | $15,000 |
| Lifetime total limit | $50,000 |
| Per couple (combined) | Up to $100,000 total |
What Contributions Count Toward the Annual Limit?
Only voluntary contributions count toward FHSS:
| Contribution type | Counts toward FHSS? |
|---|---|
| Salary sacrifice (concessional) | ✅ Yes |
| Personal deductible contributions (concessional) | ✅ Yes |
| Personal non-concessional contributions | ✅ Yes |
| Employer SG contributions | ❌ No |
| Government co-contributions | ❌ No |
| Spouse contributions | ❌ No |
The annual limit applies across all contribution types combined — you cannot use $15,000 of salary sacrifice AND $15,000 of after-tax contributions in the same year.
Can You Carry Forward Unused Annual Limit?
No — the FHSS annual limit does not carry forward. If you contribute only $10,000 in one year, the unused $5,000 is permanently lost for FHSS purposes. You cannot add it to a future year.
This makes early and consistent annual contributions important for maximising the total $50,000 limit.
Maximising the FHSS Over Multiple Years
| Year | Contribution | Cumulative FHSS contributions |
|---|---|---|
| Year 1 | $15,000 | $15,000 |
| Year 2 | $15,000 | $30,000 |
| Year 3 | $15,000 | $45,000 |
| Year 4 (partial) | $5,000 | $50,000 (lifetime cap reached) |
To reach the $50,000 lifetime limit, you would need at least 4 financial years of contributions.
Tax Advantage of Contributing Through Super
Contributing via salary sacrifice into the FHSS rather than saving in a bank account provides a tax advantage:
- Concessional (salary sacrifice) contributions are taxed at 15% entering the fund
- Instead of being taxed at your marginal rate (e.g., 32.5% or 37%)
- When withdrawn, FHSS amounts are taxed at marginal rate less a 30% tax offset
The net result is that most Australians save significantly more tax by using FHSS than saving the equivalent amount in a bank account.
The FHSS Annual Limit vs Concessional Cap
FHSS contributions count toward the concessional contributions cap ($30,000 in FY2024–25) if they are concessional. The annual $15,000 FHSS limit is a sub-limit within the concessional cap — not an addition to it.
If your employer SG contributions are $11,500 (11.5% of $100,000 salary), you have $18,500 of concessional cap remaining. You can contribute up to $15,000 of that as FHSS salary sacrifice (within the $15,000 annual FHSS limit) and the remaining $3,500 as additional non-FHSS super contributions.
Frequently Asked Questions
Can I contribute more than $15,000 in one year and have the excess count toward FHSS? No — contributions above $15,000 in a financial year simply sit in your super account as normal super money. They don’t count toward your FHSS limit in any future year and cannot be released under FHSS at all. The only way to maximise your FHSS total is through consistent annual contributions over multiple years.
Does the $15,000 annual limit reset at 1 July each year? Yes — the limit resets each 1 July. Contributions made between 1 July and 30 June of a given year count toward that year’s $15,000 FHSS limit. If you contribute $10,000 in FY2024–25, the unused $5,000 is gone — you cannot add $20,000 in FY2025–26.
Can I use both salary sacrifice and personal contributions in the same year to reach $15,000? Yes — the $15,000 annual limit applies across all eligible voluntary contribution types combined. You could, for example, make $10,000 of salary sacrifice and $5,000 of personal non-concessional contributions in the same year, totalling $15,000. Just ensure concessional contributions (salary sacrifice + personal deductible) don’t exceed the $30,000 concessional cap.
Does making an FHSS contribution now lock the money away permanently if I don’t buy? No — if you don’t end up buying a home, you have two options: (1) recontribute the released FHSS amount to super as a non-concessional contribution within 12 months (no extra tax); or (2) keep the money and pay the FHSS assessed tax (marginal rate + 20%). If you never apply for release, the contributions remain in your super account and are preserved until retirement as normal.
What happens if I exceed the $50,000 lifetime limit? Contributions above the $50,000 lifetime limit are not counted as FHSS-eligible — they remain in super as regular super money. There is no penalty for contributing “too much” overall, but those excess contributions simply cannot be released under the FHSS scheme. The ATO tracks your FHSS total via your myGov account.
If I start FHSS contributions now but decide not to buy for 5+ years, is the money still accessible? Yes — FHSS contributions remain eligible for release whenever you are ready to buy, provided you have not previously released FHSS funds and you still meet the eligibility requirements when you apply. There is no deadline by which you must use the scheme. The annual $15,000 limit still applies in each year you continue making contributions.
For more: FHSS Scheme Explained, FHSS Eligibility, FHSS Contribution Strategy, FHSS Tax Treatment. For advice tailored to your situation, speak with a licensed financial adviser via MoneySmart.