First Home Super Saver Scheme (FHSSS) — 2026 Caps and Strategy
The First Home Super Saver Scheme (FHSSS) lets you save your home deposit through your superannuation account, taking advantage of super’s low tax rates. In 2026 the caps are higher and the strategy still works — but the timing trips up many borrowers.
How It Works in 30 Seconds
You make voluntary contributions (concessional or non-concessional) to your super fund. When you’re ready to buy, the ATO releases the eligible savings — plus deemed earnings — back to you for the deposit.
The advantage: concessional contributions are taxed at 15% inside super, versus your marginal tax rate (32.5% or 37% for most middle-income earners) outside. The 17.5%–22% gap is the saving.
2026 Caps
- Per-year voluntary contribution limit for FHSSS: $15,000 of contributions can be released per financial year
- Lifetime release cap: $50,000 of contributions, plus deemed earnings (which the ATO calculates roughly 5%–7% annually)
A couple can each use the scheme — so combined max release for a couple is $100,000 + earnings.
The Tax Math: Single Earner Example
You earn $90,000. Marginal tax: 32.5% (plus 2% Medicare).
- Salary sacrifice $15,000 into super
- Super contribution tax: 15% × $15,000 = $2,250
- Net into super: $12,750
- If you’d received it as salary, after 34.5% tax: $9,825 in hand
- FHSSS saves you ~$2,925 per year of contribution
Over the 4 years it takes to reach the $50,000 cap, that’s roughly $11,700 in tax savings versus saving in a regular account.
Eligibility Rules
You can use FHSSS if:
- You’ve never owned property in Australia (FHB criteria)
- You’re 18+
- You intend to live in the home for at least 6 months in the first 12 after settlement
- You haven’t previously released funds under FHSSS
The Timing Trap
You request the release before signing the contract. Then:
- ATO has up to 25 business days to release the funds
- You have 12 months from the release date to sign a contract to buy
- If you don’t buy in time, the released funds must go back to super OR you pay tax
Many first-home buyers underestimate the 25-business-day processing time and miss settlement deadlines. Apply early.
The Strategy: Pair with the First Home Guarantee
If you combine FHSSS savings ($50k) with a First Home Guarantee (5% deposit with no LMI), you can buy in Sydney/Melbourne at price points that pure savers can’t reach.
Example: $750,000 home, 10% deposit. The deposit is $75,000. Combining $50k from FHSSS + $25k from regular savings gets you there. Without FHSSS, you’d need $75k in after-tax savings, requiring roughly $111k of gross earnings to assemble.
Bottom Line
FHSSS is a real $10k–$15k tax saving on the way to your deposit. The lifetime $50k cap is per person — couples should each contribute. Always apply for release before signing a contract, and budget 25 business days for the ATO process.