Australia has two major Commonwealth Government schemes to help first home buyers — the First Home Super Saver (FHSS) scheme and the proposed Help to Buy shared equity scheme. They work very differently and suit different circumstances.
What Is the FHSS Scheme?
The FHSS scheme allows first home buyers to save for a deposit inside superannuation. You make voluntary contributions (up to $15,000/year, $50,000 lifetime) and later withdraw them — plus associated earnings — to use as a deposit. The tax advantage of super means you accumulate a deposit more efficiently than a standard bank account.
Key facts:
- Up to $50,000 per person ($100,000 for couples)
- No income limit
- You need a full deposit and borrowing capacity yourself
- Available for any residential property (no price cap)
- You own 100% of the property
What Is Help to Buy?
Help to Buy is a shared equity scheme where the Commonwealth Government co-purchases a portion of your home alongside you — reducing the deposit and loan size you need.
Key facts (as proposed — check current status before relying on these details):
- Government contributes up to 40% for new builds, 30% for existing properties
- You need a minimum 2% deposit
- You take a home loan for the remaining (typically 60–68%) and own the property with the Government as a silent co-owner
- Income caps apply: $90,000 (singles), $120,000 (couples)
- Price caps apply (varies by city — approximately $800,000 in capital cities)
- You can buy back the Government’s share over time
- Places are limited (10,000 per year)
Note: Help to Buy was legislated in late 2024 and is being implemented from 2025. Confirm current details with the National Housing Finance and Investment Corporation (NHFIC) / Housing Australia.
Side-by-Side Comparison
| Feature | FHSS | Help to Buy |
|---|---|---|
| What you need | Savings (via super contributions) | 2% deposit |
| Income test | None | $90,000 singles / $120,000 couples |
| Property price cap | None | ~$800,000 capital cities |
| Government role | Tax concession only — you own 100% | Co-owner (silent equity partner) |
| Upfront deposit required | Yes (standard — typically 10–20%) | 2% minimum |
| LMI required | Depends on deposit size | No (government equity covers gap) |
| Ongoing obligations | None after purchase | Share of equity with government; buy back optional |
| Annual limit | $15,000 contributions | Not applicable |
| Scheme cap | $50,000 lifetime per person | 10,000 places per year (national) |
| Can be combined with FHOG? | Yes | Yes |
Which Scheme Suits Which Situation?
FHSS is likely more suitable if:
- You earn above the Help to Buy income cap
- You want to buy a property above the price cap
- You have time to save (at least 1–4 years of contributions)
- You want full ownership from day one
- You earn a middle-to-high income and benefit most from super’s tax advantages
Help to Buy is likely more suitable if:
- You cannot save a full deposit even with FHSS
- You meet the income cap requirements
- You need to buy sooner and can’t wait years to accumulate super contributions
- You are comfortable with a shared equity arrangement
Can You Use Both Together?
Potentially — you could use FHSS contributions as part of your 2% deposit for Help to Buy. However, combining them adds complexity in timing and application. Seek advice if you are considering both.
For more: FHSS Eligibility, FHSS Contribution Strategy, FHSS vs FHOG, FHSS FAQ. For advice tailored to your situation, speak with a licensed financial adviser via MoneySmart.