For many Australians, saving for a first home deposit feels like a never-ending uphill climb. With property prices continuing to rise faster than wages, the traditional savings account is often too slow to keep up. This is where the First Home Super Saver Scheme (FHSSS) comes in — an underutilised government initiative that allows first-time buyers to save more efficiently through superannuation.
How the FHSSS Works
The FHSSS allows eligible Australians to make voluntary contributions into their super fund and later withdraw them to put toward a first home deposit.
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You can contribute up to $15,000 per year and $50,000 in total under the scheme.
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Both concessional (before-tax) and non-concessional (after-tax) contributions are eligible.
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When it’s time to buy, you can apply to release these contributions along with the associated earnings.
The Tax Advantage
This is where the scheme really shines. Contributions made through salary sacrifice are taxed at 15%, instead of your marginal tax rate (which could be as high as 32.5% or more).
For example:
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If you earn $80,000 a year, your marginal tax rate is 32.5%.
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Every $10,000 saved into super under FHSSS saves you about $1,750 in tax compared to keeping it in a standard savings account.
That’s extra money directly boosting your deposit instead of being lost to tax.
Why More Australians Should Use It
Despite its clear benefits, FHSSS is still underused. Many potential buyers either don’t know about it or assume it is too complicated. In reality, the process is straightforward — and the tax savings are significant. For disciplined savers, this scheme can shave years off the time needed to build a deposit.
Things to Consider
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You must be a first home buyer and meet eligibility rules.
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The funds can only be used for a residential property in Australia.
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Timing is important — applying for release and signing a property contract have strict deadlines.
The Bottom Line
The FHSSS is one of the most effective ways for first home buyers to fast-track their deposit. By combining the power of superannuation with tax savings, it creates a smarter pathway to home ownership.
Need advice on FHSSS or other first-home strategies?
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Email: support@sw-globalfinance.com.au