The First Home Super Saver Scheme

The First Home Super Saver Scheme (FHSS)

Are you dreaming of owning your first home in Sydney, Australia? The First Home Super Saver Scheme (FHSS) could be your ticket to turning that dream into reality. 

In this comprehensive guide, we’ll explore how the FHSS works, eligibility criteria, and practical steps to save for your home deposit.

Understanding the FHSS

The FHSS is designed to help Australians save for their first home by utilizing their superannuation. Here’s how it works:

First Home Super Saver Scheme

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Voluntary Contributions

You can make voluntary contributions to your super account specifically for your home deposit.

Tax Benefits

These contributions receive favorable tax treatment, making it an attractive savings avenue.

Withdrawal for Home Purchase: 

When you’re ready to buy your first home, you can withdraw these savings, including associated earnings.

Eligibility and Conditions

Age Requirement:

You must be 18 years or older when requesting an FHSS determination or withdrawing money under the scheme.

However, you can start making eligible contributions even before turning 18.

First Home Buyer Status:

To qualify, you must be a first home buyer.

This means you’ve never owned any property in Australia, including investment properties, vacant land, or commercial real estate.

Exceptions apply if you’ve faced financial hardship.

Occupancy Intentions:

You intend to occupy the purchased property as your primary residence.

Within the first 12 months of ownership, you must live in it for at least 6 months.

No Previous FHSS Release:

You haven’t previously made an FHSS release request.

Citizenship or Residency:

You don’t need to be an Australian citizen or resident for tax purposes to use the FHSS scheme.

Saving Strategies

Maximize your FHSS savings:

  • Before-Tax Concessional Contributions: These include salary sacrifice contributions.
  • After-Tax Non-Concessional Contributions: Make additional payments from your take-home pay.

    Applying for FHSS Release

When you’re ready to buy, follow these steps:

  • Obtain an FHSS determination from the Australian Taxation Office (ATO).
  • Ensure eligible contributions are correctly recorded.
  • Exclude superannuation guarantee and spouse contributions.
    Receiving Your FHSS Amount

Once approved, withdraw your FHSS savings.

Use the funds wisely for your home purchase.

Tax Implications

Report FHSS withdrawals in your annual tax return.

Enjoy tax benefits, but seek professional advice if needed.


The FHSS is a powerful tool for aspiring homeowners. Start saving strategically, and soon you’ll be unlocking the door to your very own home. Remember, local nuances matter—tailor your approach to Sydney’s real estate market.

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