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FHSS eligibility when you lost your property due to hardship

Previous property owners may still be eligible to use the FHSS scheme in selected circumstances.

Published 8 July 2026

Eligibility

If you have previously owned property in Australia, you may still be eligible to use the FHSS scheme if we determine you have suffered a FHSS hardship that resulted in you losing ownership of all your property interests.

The events that could result in you losing your property interests include:

  • bankruptcy
  • divorce, separation from a de-facto partner or a relationship breakdown
  • loss of employment
  • serious illness
  • being affected by a natural disaster.

This FHSS hardship process is only for those who wish to use the FHSS scheme. If you're experiencing severe financial hardship which is unrelated to saving for your first home, see Access due to severe financial hardship.

Before applying

If you believe you meet the FHSS hardship criteria, you should apply to us for FHSS hardship determination before you start saving, so you know if you will be able to release amounts from your super using the FHSS scheme.

You must provide supporting documents with your application that demonstrates the link between your hardship event and the loss of your property.

Supporting documents about the hardship event

To support the specific hardship event that led to the loss of your property, provide any of the following documents that apply to your situation:

  • Loss of employment: employer's letter; separation certificate; bank/lender letter; recent bank statements; final payslip.
  • Separation or divorce: divorce order; property/financial asset distribution order; parenting plan; consent/court orders; settlement certificate; police reports/AVOs.
  • Natural disaster: letter from your insurance provider or the Insurance Council of Australia confirming the home was damaged or destroyed (alongside proof the property was sold); a letter from your bank.
  • Bankruptcy: an official bankruptcy trustee letter; a letter from the Australian Financial Security Authority; an extract from the National Personal Insolvency Index (NPII); documents disclosing which assets were surrendered.
  • Medical illness: a detailed letter from your treating medical practitioner; private health fund statement; employer letter confirming reduced hours / unpaid leave; relevant hospital and medical records.

Supporting documents about the loss of the property

You must also provide evidence confirming that you ceased to hold your property. You can provide one or more of the following documents:

  • contract for the sale of the property
  • transfer of title papers
  • written communication or emails from your real estate agency (particularly if there were delays in selling)
  • bank correspondence regarding dishonoured mortgage repayments, repossession or foreclosure.

Alternatives to formal documentation

If you don't have formal records for any of the above, you can submit informal evidence along with a completed Statutory declarationExternal Link. This declaration must:

  • confirm the date and nature of the hardship event
  • explain how it led to the loss of your property.

If we accept you have suffered financial hardship that resulted in the loss of ownership of your property, you will be taken to satisfy the property ownership requirement for an FHSS determination.

You must also meet all the following FHSS eligibility conditions at the time you lodge your FHSS determination form:

  • You haven't acquired a subsequent interest in real property in Australia since you lost your property because of financial hardship.
  • You are 18 years old or older.
  • You haven't previously made a valid FHSS release request unless a previous request was withdrawn or the release authority was revoked.

Example: financial hardship

Over several years, Peter bought and sold multiple properties located in Australia. During 2024–25, Peter becomes bankrupt and is required to sell all his current real property interests.

Peter is over 18 and has not used the FHSS scheme previously. He has not acquired another real property interest located in Australia after his bankruptcy.

Peter hopes to buy a new property and makes an FHSS hardship application. We make a determination that Peter suffered a financial hardship that led to the loss of all his real property interests located in Australia.

There is no requirement for the financial hardship to be linked to the loss of a first home, if it has resulted in the loss of all his current real property interests located in Australia.

End of example

How to make a FHSS hardship application

If you want to be considered under the FHSS hardship provision, you must:

  1. apply for a FHSS financial hardship determination first
  2. be approved under the hardship provisions
  3. submit a FHSS determination only after the FHSS hardship has been approved.

The FHSSS hardship application alone will not result in the release any amount from your super fund.

You can apply for FHSS hardship by:

  • logging in to ATO online services through myGov
    • select Super, then Manage, then First home saver
    • answer the first 3 questions in the FHSS determination which if answered correctly, should take you to the link to the FHSS hardship request
    • select the link to Submit a hardship application form.

Note: Do not use invalid characters, such as # ^ ~ \ < > _ • –, in the description section of the FHSS hardship application as this may prevent the form from lodging successfully.

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