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Want to use super for a first home deposit?

That’s super helpful. Discover how you may save your deposit, faster. 
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Helping you save for a first home deposit in your super

The First Home Super Saver (FHSS) scheme lets you use voluntary super contributions to help save your first house deposit. You can withdraw this amount, plus associated earnings, when you're ready to buy or build your first home. 

By saving your deposit in your super instead of a traditional bank account, you could save faster through lower tax rates and potentially higher investment returns. 

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How it works

 

  1. Add extra to your super through voluntary contributions up to $15,000 per financial year 
  2. Maximum of $50,000 withdrawal across all years, plus interest and investment earnings on that money
  3.  Move into your new home within 12 months of funds being released 

 

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Why use super to save for your first home?

Lower tax rate
Before-tax super contributions, which are likely to be taxed at a lower rate than your marginal tax rate, help boost your savings.[C1)
Number 1
Save faster
Potentially higher investment returns and lower tax on your super contributions mean you may be saving faster than saving in a bank account. 
Number 2
Earnings included
When you withdraw your deposit, you'll also get the investment earnings on your contributions, based on the ATO's rate. 
Number 3
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What contributions count toward my deposit?

Only your voluntary contributions can be used for the FHSS scheme. This covers things like salary sacrifice[2] or the extra money you add yourself. It doesn’t include your regular super payments from your employer.  

Voluntary contributions can include: 

  • before-tax contributions such as salary sacrifice; or 

  • after-tax contributions where you deposit extra money directly into your super account. 


Contribution limits to remember:

There are limits on how much you can contribute using either before-tax or after-tax contributions. Remember to check your eligibility to make extra contributions. Extra tax may apply if you exceed these limits.  

Learn more about contribution limits. 

Who can apply?

To qualify for the FHSS scheme you must be:  

  • 18 years or older at time of application.   

  • A first home buyer, including having never owned property or land in Australia.  

  • The title holder (or co-owner) of the property you buy or build.  

Note: To be eligible, you can never have withdrawn funds as part of the FHSS scheme before. Only one withdrawal per person is allowed. 

Got questions? Talk to one of our experts today about applying for the FHSS scheme.

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How do I get my money?

  1. Make sure you’re eligible to apply.  
  2. Put extra voluntary contributions into your super.  
  3. Request your Determination from the ATO. 
    (Note: Your ‘Determination’ is the amount the ATO tells you that you can withdraw from your super as part of the FHSS scheme. You need to have this Determination before you sign your contract.)   
  4. Request a FHSS release authority. The ATO will instruct Aware Super to release your funds to them. They’ll then deduct any applicable tax, then pay the money to you.  

Need some guidance? Our in-house experts are ready to talk you through your application to make sure you’re getting the most out of the FHSS scheme.  

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FHSS scheme FAQs

You can contribute up to $15,000 per financial year. However, you can withdraw up to a maximum of $50,000 across all financial years, plus all associated earnings.

You can only make one FHSS withdrawal in your lifetime, and it must be taken as a lump sum.

Your funds are generally only released when you’re ready to sign a contract to buy or build a new home. You’ve got 12 months to sign a contract from the time your funds are released. 

If you don't sign a contract within 12 months of releasing your funds through the FHSS scheme, you can:  

  • request an extension (up to 12 more months),  

  • put the funds back into super (less any tax withheld), or  

  • keep the funds but pay an additional 20% tax on the assessable amount. 

The FHSS withdrawal forms part of your assessable income in your tax return for the year the money is released to you. Amounts from before-tax contributions are taxed at your marginal rate less a 30% offset, while after-tax contributions aren't subject to additional tax.

It’s important to remember that any money you withdraw from your super now for your home deposit won't be in your super later for retirement.  

You won’t be earning investment returns on that money and those returns won’t be compounding.

Consider your long-term financial goals before choosing the First Home Super Saver scheme.

[2] Salary sacrifice will save tax in many but not all circumstances and will cause a reduction in your take home pay.

[C1] Before consolidating, consider if this is right for you, including the loss of any insurance cover from your other funds, the impact on your investments, and potential tax implications and read the PDS and TMD at aware.com.au/pds. You may wish to speak with a qualified financial planner before making this decision.

Past performance is not an indicator of future performance.