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Home / Super booster / Super contributions / How the First Home Super Saver (FHSS) scheme works

How the First Home Super Saver (FHSS) scheme works

Kate CrawfordKate Crawford

Saving the deposit to buy your first home has always been a tall order, but with property prices at record highs, getting into the housing market has become even more of a challenge.

The First Home Super Saver (FHSS) scheme, developed by the Australian Government could be part of the solution for some first home buyers, but it is important you are aware of the rules and limits on the amount you can withdraw.

The scheme allows you to save money towards your first home by making personal voluntary contributions to your super account, where tax concessions and a generous rate of interest can add to your savings.

Watch our video and read on below to learn more.

SuperGuide members have access to an extended version including an example of using the scheme at the last minute, and some traps to be aware of.

Learn more about becoming a member.

What you can withdraw

Voluntary contributions you have made since 1 July 2017 to a taxed super fund are eligible to be included in the scheme, even if you didn’t originally intend to use them as savings towards a home.

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About the author

Kate Crawford
Kate Crawford
Kate has worked in the superannuation sector since 2003. Her experience ranges from customer service to financial advice, member education, complaints management, trustee services, and learning and development. She currently develops content and facilitates learning sessions for super professionals with the Association of Superannuation Funds (ASFA) as well as writing for SuperGuide.
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Responses

  1. Michael Bree Avatar
    Michael Bree

    Hi All,

    Just wanted to note this scheme includes the entire super rebate as taxable income. Therefore in the year you take the money out of your super you taxable income is boosted by the lump sum.

    This means any government rebates/offset you get for childcare etc will be smaller. Once we add it all together it really wasn’t worth doing all. So disappointing!

  2. georgie Avatar
    georgie

    The one big advantage to the FHSSS and the previous scheme is that it allows income support recipients (students/ single parents/disability pensioners etc) to save money for a home without deeming applying to the account balance. That means that your income support payment will not be reduced by the amount of “deemed interest” .

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