Q&A · Last reviewed 2026-05-01
Is the First Home Super Saver scheme worth it?
For most first home buyers on a 30%+ marginal tax rate, FHSS saves $11,000-$22,000 of net tax on a $50,000 deposit. Worth it. Limits: $15K/year contributions, $50K total cap. Withdrawal process is bureaucratic but works.
FHSS lets you make voluntary super contributions (up to $15K/year, $50K total cap) at the concessional 15% tax rate instead of your marginal rate, then withdraw those contributions plus deemed earnings to use as a deposit. The tax savings between concessional contribution rate and your marginal rate are the benefit.
Benefit math: a $50,000 contribution from someone on the 39% marginal rate (taxable income $135K-$190K) saves $50K × (39% - 15%) × 0.85 = $10,200 in net tax. On the 47% rate (above $190K), the saving is closer to $13,600. Plus deemed earnings on the contributions while they sit in super, typically another $1-2K annually.
Eligibility: must be 18+, never owned property in Australia, contributing voluntarily (employer Super Guarantee contributions don't count), and intending to live in the purchased property for ≥6 months within 12 months of purchase. The release process via the ATO takes 15-25 business days from request.
FHSS stacks with other FHB schemes. Home Guarantee Scheme, state stamp duty exemptions, FHOG grants. Run the math through the buying-power calculator to see your total upfront cash position. The most common pitfall is forgetting to leave enough super to cover early-career contribution caps in subsequent years.
Primary sources
Related
Informational. Not financial advice. Verify with a licensed adviser appropriate to your circumstances.
Open the playbook — 11 chapters end-to-end, every threshold cited.