How the FHSS scheme works
The FHSS scheme helps you save for your first home by letting you:
- put extra money into your super in the form of personal voluntary contributions
- later withdraw the money to use as part of your home deposit.
Because super is taxed differently from your regular income, this can help your savings grow faster. Your voluntary concessional contributions are taxed at 15%, which is usually less than your marginal income tax rate. Assessable FHSS released amounts also benefit from a 30% FHSS tax offset.
You don't need to be an Australian citizen or Australian resident for tax purposes to use the FHSS scheme.
How much you can contribute and withdraw
Using the FHSS scheme, you can contribute a maximum of $15,000 in any one financial year up to a total maximum of $50,000 across all years.
When you want to access your FHSS amount to buy a home you can withdraw:
- 100% of your eligible personal voluntary contributions that you have not claimed a tax deduction for. These are non-concessional contribution.
- 85% of eligible personal voluntary super contributions you have claimed a tax deduction for. These are concessional contribution.
- 85% of your eligible salary sacrifice contributions. These are concessional contribution.
- an amount of associated earnings on both concessional and non-concessional contributions.
Working out how much you have for your purchase
When you're ready to use the funds to help buy a home in Australia, you can:
- request an FHSS determination to work out how much you have available for release
- submit a request to release your FHSS amount plus associated earnings.
It's important you request a FHSS determination before ownership of any real property transfers to you. You must request the determination before settlement of a property contract.