What you need to know about using the FHSS scheme
The FHSS isn't right for everybody. Before you start saving in your super fund, make sure you understand:
- the impacts of using the scheme
- property purchase considerations when using the scheme
- the use of state or territory government concessions
- the eligibility criteria.
The content on this page explains the basics of the FHSS. You can also visit the ATO Publication Ordering Service to place an order or download our FHSS scheme essentials (PDF, 365KB)This link will download a file. The publication summarises everything to consider if you're planning to use your super savings to purchase your first home.
For technical information on the FHSS scheme, see:
- Guidance Note GN 2024/1 First home super saver scheme
- Taxation Ruling TR 2024/4 First home super saver scheme.
Impacts of using the FHSS scheme
The following are possible impacts of using the FHSS scheme:
- Assessable FHSS amounts that are released to you will affect your income tax in that year. You will receive a FHSS payment summary from us which details the total amount released, the amount that is assessable for tax (called the assessable FHSS released amount) and the amount of tax that was withheld. You need to include these amounts in your tax return in the year in which you make the request to release.
- Your assessable FHSS released amount is not included in your assessable income for calculating family assistance and child support payments.
- If you have an outstanding debt with the ATO or another Commonwealth agency, your FHSS release amount
- may be offset against this debt
- could be reduced (including to nil)
- will take longer to be released to you.
If you are unsure the FHSS scheme is right for you, consider getting help from a financial advisor. For financial tips, safety advice and free tools and calculators, you can also visit the ASIC's Money Smart websiteExternal Link or call 1300 300 630.
Property purchase considerations when using the FHSS scheme
If you use the FHSS scheme to buy your first home, you must both:
- genuinely intend to occupy the property as a home as soon as practicable after purchase
- occupy it for at least 6 of the first 12 months from when it is practicable to occupy it.
You can't use the FHSS scheme to purchase:
- any premises not capable of being occupied as a residence
- a houseboat
- a motor home
- vacant land.
However, you can use the FHSS scheme for the construction of a home on vacant land, provided ownership of the vacant land has not transferred to you before applying for a FHSS determination. The contract to construct the home on the vacant land must be entered into within 12 months (or other period allowed) from the date you request a FHSS release.
State or territory government concessions
The FHSS scheme is separate to other concessions offered by state or territory governments.
Using other state or territory government concessions as a first home buyer doesn't impact your ability to access the FHSS scheme.
If you want to access state or territory government concessions as a first home buyer, you will need to check with the relevant state or territory government authority to confirm you meet the eligibility criteria for each concession, including whether using the FHSS scheme may impact your ability to access those concessions.