How to Apply for the FHSS Scheme — Step-by-Step Guide

Applying for the FHSS scheme involves three main stages: making eligible contributions, requesting a determination from the ATO, and applying for release once you are ready to purchase. Here’s the full process.

Stage 1 — Make Eligible Contributions

Before you can apply for the FHSS, you need to make eligible voluntary super contributions:

• Salary sacrifice (via your employer payroll)
• Personal deductible contributions (claim a deduction via Notice of Intent form)
• Personal non-concessional contributions (no deduction claimed)

Each financial year, you can make up to $15,000 in FHSS-eligible contributions. The lifetime cap is $50,000 per person.

You do not need to tell your super fund you are saving for FHSS — contributions simply go into your regular account and the ATO tracks the eligible FHSS amounts via your contribution data.

Stage 2 — Request an FHSS Determination

When you are ready to purchase a home (or want to understand how much you can release), apply for an FHSS determination from the ATO.

How to apply for a determination:

1. Log in to myGov and link the ATO service
2. Navigate to: ATO → Super → First Home Super Saver → Request determination
3. The ATO will confirm the eligible FHSS amount you can release (contributions + deemed earnings)
4. You’ll receive a maximum FHSS releasable amount

This is not a request to release the money — it’s confirmation of how much you are entitled to release.

Stage 3 — Sign a Purchase Contract

Once you have your FHSS determination, you must sign a contract to purchase or construct a first home within 14 days of receiving the determination.

Alternatively, the ATO may extend the period to up to 24 months from the determination date if you have a genuine intention to purchase and extenuating circumstances.

Note: You cannot apply for a release before signing a purchase contract.

Stage 4 — Apply for FHSS Release

After signing the contract, apply for the FHSS release:

1. Log in to myGov → ATO → Super → First Home Super Saver → Apply for release
2. Provide the contract date and property details
3. The ATO processes your application and instructs your super fund to transfer the money
4. Your super fund transfers the amount (minus withholding tax)
5. The ATO pays the net amount to you (your bank account)

Timing: Allow 15–25 business days from release application to receiving funds. Factor this into your settlement timeline.

Tax Withholding at Release

The ATO withholds tax at the time of release. The amount withheld is based on your income (the ATO uses the withholding variation rate). You reconcile the actual tax in your tax return for the year.

Tax on release:

• Concessional contributions released: Taxed at your marginal rate minus a 30% tax offset
• Non-concessional contributions released: Tax-free (no tax on these)
• Associated earnings: Taxed at your marginal rate minus 30% tax offset

Common Timing Mistakes to Avoid

1. Applying for release too early — you cannot receive funds before your contract date
2. Settlement too quick for FHSS release — if you have a 21-day settlement, FHSS release timing may not work; negotiate a longer settlement or arrange bridge finance
3. Forgetting the 14-day contract rule — don’t sign a contract before getting your determination
4. Missing the 12-month recontribution window — if plans change, you have 12 months to recontribute

Checklist — FHSS Application

• Eligible contributions made (at least some in prior financial years)
• myGov linked to ATO
• FHSS determination applied for and received
• Purchase contract signed within 14 days of determination
• FHSS release applied for via myGov
• Super fund instructed by ATO; fund processes transfer
• Funds received; used at settlement
• Include FHSS amounts in annual tax return

Frequently Asked Questions

Do I need to tell my super fund I am using the FHSS scheme? No — you don’t need to notify your fund when making contributions or when planning to use FHSS. The ATO contacts your fund directly when it instructs a release. You should, however, avoid switching funds or initiating rollovers while your FHSS determination or release is in progress, as this can complicate the ATO’s ability to instruct the correct fund.

What if my super fund is slow to transfer the released amount? The ATO instructs your fund to make the transfer, and funds are typically received within 15–25 business days. If your settlement date is approaching and funds haven’t arrived, contact the ATO (not your fund) first — the ATO coordinates the process. If your fund is genuinely delaying without cause, the ATO can follow up on your behalf.

Can I apply for FHSS release before I’ve signed a purchase contract? No — the release application requires you to have a signed contract. The sequence is: determination first, then contract signing, then release application. You can, however, apply for a determination before you’ve found a specific property — which is advisable, so you know your maximum releasable amount before making offers.

What if my settlement falls through after I’ve applied for release? If the property purchase falls through after you’ve received the FHSS funds, you have 12 months from the release date to either: (1) purchase another eligible property, or (2) recontribute the amount to your super as a non-concessional contribution. If you do neither within 12 months, the FHSS assessed tax applies (marginal rate + 20% on the assessable amount).

Can I use FHSS for an off-the-plan purchase where settlement is years away? Yes — FHSS can be used for off-the-plan purchases. You would typically apply for the determination and sign the off-the-plan contract as normal, but request the FHSS release closer to the settlement date (not at contract signing). The 24-month extension from the determination date may be relevant if your settlement is delayed. Contact the ATO about your specific timeline.

Is there a way to speed up the FHSS release process? No — the timeline is driven by the ATO processing the release application and your fund executing the transfer. There are no options to expedite. The practical solution is to plan ahead: apply for the determination before you start making offers, and factor 15–25 business days into your settlement expectations. Most buyers aim for a settlement of 45–60 days to give FHSS release sufficient time.

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