FHSS Scheme FAQ — Frequently Asked Questions Answered

Frequently Asked Questions — First Home Super Saver (FHSS) Scheme

What is the FHSS scheme?

The First Home Super Saver scheme allows eligible Australians to make voluntary super contributions (up to $15,000/year, $50,000 lifetime) and later withdraw them, along with associated earnings, to put toward a first home deposit. The tax benefits of the super system make it a more efficient savings vehicle than a standard bank account for most earners.

How much can I save through the FHSS?

You can contribute up to $15,000 per financial year and a total of $50,000 over your lifetime. Couples buying together can each access up to $50,000, for a potential combined deposit of $100,000 (plus associated earnings).

What types of contributions count toward the FHSS?

Only voluntary contributions count — salary sacrifice, personal deductible contributions, and personal non-concessional contributions. Employer SG contributions, co-contributions, and spouse contributions do not count.

When can I withdraw my FHSS savings?

You can apply for an FHSS determination from the ATO at any time after making eligible contributions. Once you have a determination, you must sign a contract to purchase or build within 14 days (or up to 24 months after the determination in some circumstances). You then apply for release.

What happens to my FHSS money while it’s in super?

Your contributions are invested as part of your regular super balance — they are not separately quarantined. The ATO applies a deemed earnings rate (calculated at 90-day bank bill rate + 3%) to your FHSS contributions when determining the amount you can release.

Can I use the FHSS if I’m buying with someone who has previously owned a property?

You can use the FHSS for your portion of the deposit. Your co-buyer who is ineligible cannot use the scheme for their portion. There is no joint FHSS application — each person applies individually.

What if I don’t end up buying a house?

You have two options:

1. Recontribute the released amount to your super as a non-concessional contribution within 12 months — no FHSS tax applies
2. Keep the money — you pay your marginal rate plus an additional 20% on the released amount (called the “FHSS tax”)

Can I use the FHSS for a property I’m building?

Yes — FHSS can be used for house and land packages, off-the-plan purchases, and owner-builder construction. You must commence construction or sign a building contract within the allowed timeframe.

Does the FHSS affect my access to the First Home Owner Grant (FHOG)?

No — the FHSS and FHOG are separate schemes. Using the FHSS does not disqualify you from the FHOG, and vice versa. Eligibility for each scheme must be assessed separately.

Is the FHSS available for investment properties?

No — you must intend to live in the property as your principal place of residence for at least 6 months in the first 12 months of ownership.

How long does it take to receive the FHSS release?

After you apply for a release, the ATO instructs your fund to transfer the money. The fund typically transfers within 10–25 business days, and the ATO then pays the net amount (after withholding tax) to you. Allow at least 15–25 business days from application to receipt of funds.

Can I use the FHSS if I have an SMSF?

Some SMSF members may be eligible to use the FHSS. The ATO determines eligibility case by case for SMSFs. Contact the ATO before making FHSS contributions via an SMSF.

What is the “associated earnings” component?

When the ATO calculates your FHSS release amount, they add “associated earnings” — a deemed return (the 90-day bank bill rate + 3%) on your FHSS contributions for each year they were in super. This represents the earnings assumed to have been made on your contributions inside super.

Does FHSS affect my HECS-HELP repayment?

Yes — the assessable FHSS component (concessional contributions and associated earnings) is included in your taxable income in the year of release. If this pushes your income above the HECS-HELP compulsory repayment threshold, a higher repayment may be required for that year. Non-concessional contributions released are tax-free and do not affect taxable income.

Can I check my FHSS balance before applying for a formal determination?

Yes — log in to myGov → ATO → Super → First Home Super Saver. The ATO shows an indicative eligible amount based on your contribution history. This is a planning tool only; the formal determination is the binding official figure used for release purposes.

What happens to my FHSS contributions if my super fund merges with another fund?

Fund mergers don’t affect your FHSS eligibility or the contributions tracking. Your FHSS records are maintained by the ATO, not your fund — so even if your fund changes, your eligible FHSS contribution history is preserved. The ATO will instruct whichever fund currently holds your account at the time of release.

Is there a minimum amount I need to have saved in FHSS before I can release it?

No — there is no minimum. You can apply for an FHSS release after making as little as one year’s voluntary contributions. However, the scheme’s tax advantage is more meaningful with larger amounts. If you’ve only contributed $5,000, the tax saving may not offset the administrative complexity of the process.

Can I use FHSS if I’m self-employed?

Yes — self-employed people can use FHSS. Because they typically don’t have an employer making SG contributions, they have the full $30,000 concessional cap available for personal deductible contributions, meaning they can reach the $15,000 annual FHSS limit without concern about the cap. Self-employed people must lodge a Notice of Intent to Claim a Deduction with their fund to make contributions concessional.

For more: FHSS Eligibility, FHSS Annual Limit, FHSS Contribution Strategy, FHSS How to Apply, FHSS Tax Treatment. For advice tailored to your situation, speak with a licensed financial adviser via MoneySmart.