Is the First Home Super Saver scheme worth the effort?

The FHSS scheme allows eligible buyers to access voluntary contributions to their super to buy a first home. More than $819 million has been released under the scheme since it began in 2018.

Under the scheme you can access any additional voluntary concessional and non-concessional contributions, such as any salary sacrifice or personal contributions you make to super of up to $15,000 per financial year, and up to $50,000 in total – so if you’re buying as a couple, that’s up to $100,000 combined.

However, you won’t be able to access any compulsory contributions, such as the superannuation guarantee contributions, or certain other types of contributions, such as contributions your spouse makes on your behalf. For more information on the amount and types of contributions that can be accessed under the scheme, please see the Australian Taxation Office (ATO) website. 

The amount that you can release to buy your first home also increases by a deemed earnings rate each year. So the amount you can release may be even higher.

There is more admin involved when it comes to accessing your money under the FHSS scheme than simply saving money in a bank account. This is because FHSS scheme withdrawal requests and determinations must be made via the ATO, and you must also let them know once you’ve signed a contract on your first home.

So is it really worth the extra effort?

Let’s say a couple each earns $100,000 a year. Sehansa decides to salary sacrifice 15% of her pre-tax income into super for three years to save for a deposit under the FHSS scheme.

Each month, Mitchell opts to transfer an amount of after-tax salary, equivalent to Sehansa’s reduction in annual take-home pay, into a high-interest savings account earning interest of 4%p.a.

Under the scheme, Sehansa’s pre-tax voluntary contributions are deemed to have earned 6.61% interest (based on the ATO’s current shortfall interest rate charge for October to December 2025), and she pays 15% super contributions tax.

When she withdraws her contributions, she must pay tax at her marginal rate, less a 30% tax rebate. If she had made non-concessional (after-tax) contributions, these would be tax-free on withdrawal.

Mitchell’s savings are made from his after-tax pay, and he must pay tax at his marginal rate on the earnings in his high-interest super account.

For those on higher incomes who are paying a higher marginal tax rate, you may get an even larger benefit by salary sacrificing due to the larger tax savings.

There are rules governing when you can use the FHSS scheme. Read about it in more detail, or check the ATO’s website for more information.