First home super saver (FHSS) scheme

If the spring property buzz has got you dreaming about ‘one day’ buying your first home, the first home super saver (FHSS) scheme may be an option to help you save for your deposit. 

Key learnings covered in this topic

  1. What is the FHSS scheme?
  2. How the FHSS scheme can help you buy a home
  3. Financial advice available to you

Aged 18 or over and never owned property in Australia? By making personal (before-tax or after-tax) contributions to your super account, you could save up to a lifetime limit of $50,000 (contributions plus investment earnings) to put towards the deposit for your first home.

Why consider using the FHSS scheme to save for your first home? 

There’s more than one reason:

•    Tax benefits: You will benefit from tax savings if you make before-tax contributions which are generally taxed at 15% rather than your marginal tax rate 

•    Potential for higher returns: Depending on what investment option(s) your super is invested in, you may achieve higher returns on the contributions than you would saving the full deposit in a bank account – to save your deposit quicker

•    Controlled savings: Savings can only be withdrawn to use for your house deposit, so you won’t tempted to access it for something else

•    Protected savings: The full contribution amount can be withdrawn even if reduced by negative investment markets.#

How to start saving through the FHSS scheme

There are a couple of contribution options – and the right move for you will depend on your individual circumstances. 

You could either make before-tax contributions, including setting up a salary sacrifice arrangement through your employer. Alternatively, you could make after-tax contributions from your take-home pay using your BPAY biller codes – find these in the ‘Personal details’ section of MemberOnline.  

When you’re ready to buy your home

You must apply for and receive a FHSS scheme determination from the ATO before signing a contract for your first home, or before applying to withdraw your super. Once you’ve received a FHSS scheme determination, you can then apply to withdraw your eligible super savings through the ATO. 

It’s important to know that you can only make one withdrawal, so you’ll need to ensure you withdraw the amount you need (up to the maximum). 

Where to find more info on the FHSS scheme

Explore case studies, the rules and eligibility on the FHSS scheme here

Need help deciding if the FHSS scheme is right for you? We’re here to help 

The FHSS scheme can help you save for a deposit faster but the rules around it can be tricky. As part of your CareSuper membership, you can give us a call to talk about the FHSS scheme and how super contributions can be used to create your brightest future.* Or for more comprehensive advice you can book in to see one of our experienced financial planners for a competitive fee.^ Book a call-back today.

Information correct as at 19 October 2023.

#This assumes you have other super besides the contributions you have made to your account. If your account balance falls below the total amount that you contributed (plus the interest), you'll only be able to withdraw the balance of your account at the time of withdrawal.
*Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766. 
^Advice is provided by one of our financial planners who are Authorised Representatives of Industry Funds Services Limited (IFS). IFS is responsible for any advice given to you by its Authorised Representatives. Industry Fund Services Limited ABN 54 007 016 195 AFSL 232514.