How to Apply for the First Home Super Saver Scheme

Who is Eligible for the First Home Super Saver Scheme?

Before you get too excited about tapping into your super, it's important to understand the eligibility requirements for the First Home Super Saver Scheme (FHSSS). While the scheme is designed to help first home buyers, not everyone qualifies automatically.

To be eligible, you must meet all of the following conditions at the time you request the release of your savings:

You must:

• Be 18 years or older
• Have never owned property in Australia (including investment, commercial, or inherited property)
• Have made voluntary contributions to your super fund (employer contributions don't count)
• Plan to live in the home as your primary residence for at least 6 months
• Not have previously requested a release of funds under the FHSS scheme

If you meet these, you're likely eligible, but there are some exceptions.

What if I've owned property before?

In certain circumstances, you may still be eligible under the financial hardship provision, for example, if you've lost property due to bankruptcy, divorce, or domestic violence. This is assessed on a case-by-case basis by the Australian Taxation Office (ATO).

How Does the First Home Super Saver Scheme Work?

In simple terms, the First Home Super Saver Scheme lets you save for a home deposit through your superannuation fund using voluntary contributions and then withdraw those funds later when you're ready to buy.

Because super is taxed at a lower rate than your normal income, this approach can help you grow your deposit faster and more efficiently than saving through a regular bank account.

Here's how the FHSS Scheme works from start to finish:

The 4-Step Process

1. Make voluntary contributions to your super fund
You can contribute up to $15,000 per financial year, and a total of $50,000 max under the scheme (as of 2025). These can be:

• Concessional contributions (pre-tax, like salary sacrifice)
• Non-concessional contributions (after-tax personal payments)

2. Request a ‘determination’ from the ATO
This shows how much of your super you can withdraw under the FHSS rules, including your contributions and deemed earnings.

3. Request the release of funds
Once you've received the determination, you can ask the ATO to release your savings. These will be paid to you (after tax) for use as a deposit.

4. Buy or build your first home
After the release, you'll have 12 months to sign a contract. You must also live in the property for at least 6 months within the first 12 months of moving in.

What Contributions Are Eligible?

Not all super contributions count toward the FHSS. Here's a quick breakdown:

While the FHSS scheme can offer excellent tax advantages, it's important to know that not all super contributions are eligible. Here's a quick visual breakdown of what counts and what doesn't:

As you can see, only voluntary contributions like salary sacrifice and after-tax payments qualify under the scheme, so it's critical to structure your savings correctly from the start.

Why Use Super to Save?

Because super is taxed at just 15%, most first home buyers (who are taxed at 32.5% or more) end up with more savings after tax when using the FHSS. Plus, your money grows inside your fund until you withdraw it.

FHSS Limits and Rules

To use the First Home Super Saver Scheme effectively, it's crucial to understand the latest contribution caps, withdrawal limits, tax rules, and timing requirements. The Australian Government sets these limits and may change from year to year.

Here's a clear summary of the FHSS rules:

Contribution and Withdrawal Limits

Tax Treatment

• Concessional contributions are taxed at 15% when added to your super.
• When you withdraw your savings, the amount is taxed at your marginal tax rate, minus a 30% offset, a significant tax benefit for most earners.

Example: If your marginal rate is 32.5%, you'll only pay 2.5% tax on the released amount.

Time Limits and Deadlines

Once your funds are released, you have 12 months to sign a contract to buy or build a residential property and then a further 6 months from settlement (or completion) to move in. If needed, you can also apply to the ATO for a 12-month extension.

If you don't use the funds in time, you'll need to:

• Re-contribute them into a super, or
• Pay a flat 20% FHSS tax

Other Key Rules

• You can only apply once for an FHSS release
• The scheme can't be used for investment properties
• The property must be in Australia
• You must intend to live in the property

How to Apply for the First Home Super Saver Scheme

Applying for the First Home Super Saver Scheme (FHSSS) doesn't have to be complicated, but there are a few key steps you need to follow to stay eligible and avoid costly mistakes.

Here's a simple, 5-step process to help you go from savings to settlement with confidence.

Step 1: Make Eligible Voluntary Contributions

Before anything else, you'll need to start contributing to your superannuation. Only voluntary contributions count toward your FHSS total.

You can contribute in two ways:

• Concessional contributions (e.g. salary sacrifice from pre-tax income)
• Non-concessional contributions (after-tax contributions you make directly)

Step 2: Request a Determination from the ATO

Once you've made your contributions, log in to your myGov account and link it to the ATO services.

Then request an FHSS Determination to find out:

• How much of your contributions qualify
• Your deemed earnings (calculated by ATO)
• The total amount you're eligible to withdraw

This is not the actual release, just a confirmation of what you can access.

Step 3: Apply for the Release of Funds

After you've received your determination, you can request the release through myGov.

• The ATO will process the release within 15-25 business days
• Funds will be paid directly to your nominated bank account
• The ATO will withhold tax before release (your marginal rate minus 30%)

Once the money lands in your account, the clock starts. You now have 12 months to buy or build.

Step 4: Sign a Contract to Buy or Build a Home

To remain eligible:

• You must sign a contract to buy or build a residential property within 12 months
• The home must be in Australia
• You must move in within 6 months of settlement and live there for at least 6 months.

If you're not ready in time, you can apply for a one-time 12-month extension via the ATO.

Step 5: Notify the ATO

After your contract is signed, you need to notify the ATO. This is also done through your myGov account.

If you don't end up purchasing:

• You can return the funds to your super account (no penalty)
• Or, pay a 20% FHSS tax on the amount you withdrew

Can I Apply More Than Once?

No, you can only use the FHSS scheme once, so plan your timing carefully. This is why it's smart to speak to Stryve Finance before applying.

Should You Use the FHSS Scheme or Save Normally?

A common question we get from first home buyers at Stryve Finance is:

“Should I use the First Home Super Saver Scheme, or just save in a bank account?”

The answer? It depends, but for many people, using your super can be a more innovative, faster way to grow your deposit.

Let's break it down.

FHSS vs Regular Savings Account: A Simple Comparison

Here's what happens when you save $15,000 per year over 3 years:

Based on average earnings assumptions. Actual figures may vary depending on tax bracket and fund performance.

Why You May Benefit More with FHSS

• Lower taxes: Only 15% tax going in, and a 30% offset on the way out
• Disciplined savings: Less temptation to spend, funds are locked until release
• Compound growth: Your money grows inside your super, not sitting idle in a low-interest account

Potential Drawbacks of FHSS

• Restricted access: Funds are locked until you apply for release
• Strict timing rules: You must buy within 12 months (or apply for an extension)
• Slower withdrawal: Funds take 15-25 business days to be released
• Contribution limits: You can only contribute $15,000 per year under the scheme

How Mortgage Brokers Can Help with FHSS

Most people focus on the superannuation side of the First Home Super Saver Scheme, but there's another equally important piece: your home loan strategy.

At Stryve Finance, we regularly work with first-home buyers who want to use FHSS as part of their deposit, but they're unsure how to time everything properly or whether their loan will be approved in time.

That's where a mortgage broker makes a big difference.

Here's How We Help

1. We build a personalised savings + deposit plan

Whether you're starting from zero or already contributing to a super, we'll help you map out how much to save, what type of contributions to make, and when to start applying.

2. We help coordinate your FHSS release with your home loan

One of the most significant risks with FHSS is timing. If your funds are stuck in processing, you might miss a settlement deadline. We'll help you:

• Apply for pre-approval early
• Structure your contract dates to match your FHSS timeline
• Communicate with your solicitor or conveyancer if needed

3. We advise on combining FHSS with other grants

Many buyers don't realise they can combine FHSS with:

• The First Home Owner Grant (FHOG)
• Stamp duty concessions
• Family guarantee or low-deposit loan options

We help you bundle all available benefits, because every dollar counts when you're buying your first home.

Ready to make FHSS part of your deposit plan?

We'll help you use the First Home Super Saver Scheme strategically, so your super works hand-in-hand with your home loan.

Book a free consultation with a Stryve Finance broker today and get your deposit strategy sorted.

FHSS Scheme FAQs

Still have questions about the First Home Super Saver Scheme? You're not alone. Here are the answers to some of the most common queries we hear from clients at Stryve Finance.

Can I use the FHSS with my partner?

Yes! You and your partner can both use the FHSS scheme individually, as long as you're both eligible. Each person can withdraw up to $50,000, so together you could contribute up to $100,000 toward your first home deposit.

What happens if I don't buy a home in time?

If you don't sign a contract within 12 months of the release date (or 24 months with an approved extension), you'll need to:

• Re-contribute the funds into your super account, or
• Pay a flat 20% FHSS tax on the released amount

It's vital to track your timeline or work with a broker who can help manage it.

How long does it take to receive FHSS funds?

The ATO generally processes fund releases within 15 to 25 business days after your application is approved. It's not immediate, so plan ahead to avoid delays in your property settlement.

Can I use FHSS and the First Home Owner Grant (FHOG)?

Yes, in most states and territories, you can combine the FHSS with other first home buyer incentives, including:

• First Home Owner Grant (FHOG)
• Stamp duty concessions
• Low-deposit or family guarantee home loans

Ask your mortgage broker to help you bundle these benefits.

Is the FHSS Scheme still worth it in 2025?

For many buyers, yes. With tax savings of up to 17.5% per year, FHSS remains one of the most effective ways to boost your deposit, especially if you're saving over 2-3 years. That said, it's not right for everyone. Speak to a broker to weigh it up based on your income, goals, and timeline.