What you need to know about the First Home Super Saver (FHSS) scheme

We know there’s a lot of info out there about the FHSS scheme. To help, we’ve put together the steps you need to take to get started.

• start by checking your super fund will release FHSS amounts. Then you can start making eligible contributions to your fund.

• request your FHSS determination before ownership of any property is transferred to you. This includes a block of land or property transferred to you as part of an estate. If you have purchased an existing home, this generally occurs at settlement.

• after you have received your FHSS determination, request to withdraw your super savings.

• sign a contract to purchase or construct your first home in the applicable time limit. After you have signed your contract, you have 90 days to tell us.

• when lodging your tax return, check the pre-filled FHSS amounts are correct (including tax withheld) by using the FHSS payment summary we send to you.

If you’re eligible, you can apply for a FHSS determination online using ATO Online. Just select Super > Manage > First home saver.

Make sure you check the pre-filled information is correct before you submit your application. This includes:

• your voluntary contributions

• any personal super contribution deductions.

This’ll help avoid delays or stop you from getting the wrong FHSS amount.

For instructions on how to apply this opens in a new window  and things to consider beforehand, head to our website.

You can save $15,000 a year in your super using the FHSS scheme, up to a maximum of $50,000.

To save money in your super you can:

• make pre-tax (salary sacrifice) contributions,

• post-tax personal voluntary contributions,

• or a combination of both.

Along with the money you save, you’ll receive an amount of ‘deemed earnings’ that relate to your contributions. These deemed earnings will be different from the actual earnings in your super fund.

Any contributions you make will count towards your contributions caps. It’s important you don’t exceed your cap because you can’t withdraw any amounts over it.

Your FHSS determination will tell you the maximum amount of super you can withdraw.

Taking into account the yearly and total limits, you can withdraw:

• 100% of your eligible personal voluntary super contributions that you haven’t claimed as a tax deduction

• 85% of your eligible salary sacrifice contributions

• 85% of your eligible personal voluntary super contributions if you’ve claimed them as a tax deduction

• an amount of deemed earnings associated with the contributions above.

Yes! The FHSS scheme is separate to other state or federal first home buying schemes.

You’ll just need to check with the relevant government agency to confirm you’re eligible for their concessions.

You must have a FHSS determination before any property or land is transferred into your name. This includes when you settle on a property purchase or property that you do not purchase e.g. inherited as part of an estate. You can sign a contract anytime between 90 days before you make a release request, until 12 months after.

You must tell us within 90 days when you sign a contract to buy or build your home. If you’ve bought land, there’s no need to tell us until you enter a contract to build your home. If you don’t have a street number, you can use the lot number instead.

See our website for more info on Signing a contract for a home and notifying us this opens in a new window .

Once you’ve got your FHSS determination, you can request a release of your savings before you sign a contract to buy or build your home.

If you don’t request a release before you sign a contract, you must request a release within 90 days of signing a contract (and telling us). If you don’t you'll be subject to FHSS tax.

You can only submit one FHSS release request, so It’s important to include the total amount you are wanting released in that request. If you change your mind before processing begins on your request, you may be able to cancel or amend it. Once processing is started, you won’t be able to cancel or amend your request, even if your original request was for a lower amount.

For more info on Requesting the release of your super savings this opens in a new window , visit our website.

Once you’ve requested a release of your FHSS savings, we’ll withhold tax from your assessable FHSS released amount. We use information like past tax returns to create an estimate.

Your FHSS withholding tax rate will be between 0% and 17%, and is worked out as either:

• your estimated marginal tax rate (plus Medicare levy), minus the FHSS 30% tax offset, or

• 17%, if we're unable to estimate your expected marginal rate.

After we receive your release request, we’ll ask your super fund to send us your FHSS amounts. It usually takes up to 20 business days for us to release the funds to your chosen account.

Head to our website for more details on Receiving your FHSS amount this opens in a new window .

Before you make a release request

Made a mistake on your FHSS determination? Haven’t settled a property contract or had property transferred to you? If you’re still yet to request release, you can correct it by requesting a new determination.

You can also fix up errors by amending your FHSS determination using ATO online services. It’s important to know that requesting a new determination might let you withdraw more super savings than amending your existing one.

After you make a release request

If you’ve requested a release, you can ask us to make changes using ATO online services. But you won’t be able to correct mistakes or stop your FHSS release if we’ve already started processing amounts from your super fund.

We know things like tenants can put a hold on moving into your new property.

If you plan on living in your home, you’ll still be eligible for the FHSS. You can show this by:

• moving into your home as soon as possible, and

• living in your home for at least 6 of the first 12 months after moving in.

Need more time? We may grant you an extra 12 months to buy a property or recontribute to your super. You don’t need to apply for this – if we grant an extension, we’ll confirm it in writing.

Generally, we’ll pre-fill your FHSS released amounts as assessable income on your tax return. You just need to check the details are correct.

If the pre-filled amounts are incorrect or missing, just add the assessable income and tax withheld. You can find these details on the FHSS payment summary we’ll send to you.

Need more help? Check out our instructions on how to report FHSS scheme income this opens in a new window  on your tax return using myTax.

If you have a debt with an Australian government agency, your FHSS release amounts may be used to offset it. This includes debts with us, Centrelink or child support.

Unlike other debts, your FHSS release amounts won’t be used to reduce the balance of your study loan. This is because repayments are only compulsory when you lodge your tax return.