The First Home Super Saver Scheme and your home loan: getting the timing right

The First Home Super Saver scheme is an Australian Government program, administered by the Australian Taxation Office (ATO), that lets an eligible first home buyer put extra money into super as voluntary contributions and later withdraw it to use as part of a home deposit. The appeal is the tax setting: the ATO says voluntary concessional contributions are taxed at 15% inside super, which is usually less than a person's marginal income tax rate, and assessable FHSS released amounts also receive a 30% FHSS tax offset. The released amount includes associated earnings, a notional figure the ATO calculates at the shortfall interest charge rate rather than the fund's actual returns.

The FHSS scheme is a tax and super arrangement, so this guide covers what the ATO publishes and how the steps line up with a home loan. Whether to use the scheme, how much to contribute and the tax on the release are questions for a registered tax agent, a licensed financial adviser or the ATO.

The FHSS scheme is open to people who meet every ATO condition below, and eligibility is assessed individually, so couples, siblings or friends can each use their own FHSS contributions towards the same property.

• Age: 18 or older when requesting an FHSS determination.
• Never owned property in Australia: this includes an investment property, vacant land or commercial property, unless the ATO determines FHSS financial hardship.
• On the title: the buyer's name must be on the title of the property bought.
• Used once: no completed FHSS release request already exists for that person.
• A home to live in: the buyer must intend to move in as soon as practicable and live there for at least 6 of the first 12 months.
• Eligible property: not vacant land, a houseboat or a motor home, although FHSS can fund building a home on vacant land if the land had not transferred before the determination request.

FHSS contributions count up to $15,000 in any one financial year and $50,000 in total. The ATO's maximum release amount is 100% of eligible non-concessional contributions, 85% of eligible concessional contributions such as salary sacrifice, plus associated earnings. The ATO also says to check that the super fund will release FHSS amounts before contributing.

The FHSS determination must be requested before ownership of any property transfers to the buyer, which the ATO says generally happens at settlement. Once ownership has transferred, a determination can no longer be requested. The determination is requested through ATO online services via myGov, and the ATO then states the maximum FHSS release amount. A determination can be requested more than once, and the ATO warns that errors in the pre-filled contribution data can delay the release or produce the wrong amount.

The FHSS release request is a separate step that needs a determination first. The ATO allows the release to be requested either before signing a contract or, for determinations made on or after 15 September 2024, within 90 days after signing. A valid release request made after signing but outside that window attracts FHSS tax. Only one release request can be submitted, so the ATO says to include the total amount wanted. For determinations made on or after 15 September 2024, the buyer must also notify the ATO within 90 days of signing (28 days for earlier determinations).

An FHSS purchase runs on two clocks at once, the ATO's and the lender's, and the order below lines them up so the released money is available when the contract deposit or settlement needs it.

1. 1Request the FHSS determination in ATO online services and check the pre-filled contributions. The determination states the maximum release amount, a figure worth having before a lender assesses the deposit.
2. 2Apply for [home loan pre-approval](/guides/home-loan-pre-approval-explained) with the determination amount in mind, and ask how that lender treats FHSS money (see the next section).
3. 3Decide when to request the release. Requesting before house hunting starts the 12-month contract clock early; for determinations made on or after 15 September 2024, a request after signing must happen within 90 days of the contract.
4. 4Allow 15 to 20 business days. That is how long the ATO says payment takes in most cases, after it withholds tax and offsets any ATO or Commonwealth debt. A debt can also slow the release down.
5. 5Sign the contract and check the deposit due date and settlement date against when the FHSS money is expected to land.
6. 6Notify the ATO within 90 days of signing the contract (for determinations made on or after 15 September 2024).
7. 7Settle and move in, then live in the home for at least 6 of the first 12 months. The assessable FHSS released amount goes in the tax return for the year the release was requested.

Released FHSS money is paid by the ATO to the buyer, but how a lender counts it towards the deposit, and whether it is treated as genuine savings, is set by each lender's credit policy, not by the ATO. This guide does not describe any particular lender's rule, and nothing here means a lender will accept FHSS money or that any loan will go ahead. The practical step is to raise FHSS at pre-approval, before any money is released, and ask what evidence that lender wants.

The ATO produces its own paperwork: the determination states the maximum release amount, and the ATO notifies the applicant in writing once the super fund has released the amount or said it could not. A broker can put the FHSS question to several lenders at once. FundUp is a Cairns-based mortgage broker that serves clients Australia-wide and puts its panel at 40+ lenders; it states its service costs the borrower nothing because the lender pays the broker a commission, which must be disclosed.

The FHSS scheme sits alongside Queensland's first home help rather than replacing it. The ATO says using state or territory first home buyer concessions does not affect access to FHSS, but buyers still need to check with the state authority whether using FHSS affects each state concession.

Whether the First Home Super Saver scheme is worth using depends on a buyer's tax position and purchase timing, and the ATO suggests getting help from a financial adviser if unsure. The trade-offs the ATO publishes are worth weighing first.

• One use only: a completed release request ends eligibility, and recontributing the money instead of buying still means FHSS cannot be used again.
• A contract deadline: after a release request, the buyer must sign a contract to buy or build, or recontribute, within 12 months; the ATO may extend this by a further 12 months, to 24 months at most.
• Tax if plans change: keeping the money without a contract attracts FHSS tax of 20% of the assessable released amount, on top of income tax.
• Lead time: 15 to 20 business days in most cases between the release request and payment.

For a registered tax agent, financial adviser or the ATO: how much to contribute, salary sacrifice or a claimed deduction, and the tax on the release. For a broker: how lenders treat FHSS money, pre-approval timing and how the deposit fits home loans on offer. Borrowing estimates are on the calculators page.