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:
- Log in to myGov and link the ATO service
- Navigate to: ATO → Super → First Home Super Saver → Request determination
- The ATO will confirm the eligible FHSS amount you can release (contributions + deemed earnings)
- 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:
- Log in to myGov → ATO → Super → First Home Super Saver → Apply for release
- Provide the contract date and property details
- The ATO processes your application and instructs your super fund to transfer the money
- Your super fund transfers the amount (minus withholding tax)
- 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
- Applying for release too early — you cannot receive funds before your contract date
- 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
- Forgetting the 14-day contract rule — don’t sign a contract before getting your determination
- 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
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.