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- When withdrawn, FHSS amounts are taxed at marginal rate less a 30% tax offset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.
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.