The First Home Super Saver Scheme lets first-home buyers save up to $50,000 of their deposit inside their superannuation fund — taking advantage of the lower tax rates applied to super contributions. For a first-home buyer on $90k income, this can save $8,000-$12,000 in tax compared to saving outside super. Here is exactly how it works in 2026.
How the FHSS Works
- Make voluntary concessional contributions to your super (on top of employer contributions)
- These contributions are taxed at 15% inside super (vs your marginal rate of 32.5% to 47%)
- When ready to buy, apply to the ATO to release up to $50,000 in FHSS funds
- The released funds are taxed at your marginal rate minus a 30% offset
- Use the money as your deposit
FHSS Contribution Limits and Eligibility
| Parameter | 2026 Rules |
|---|---|
| Maximum annual FHSS contributions | $15,000 per year |
| Maximum total FHSS amount | $50,000 per person |
| Eligible contribution types | Voluntary concessional and non-concessional |
| Property price cap | No property price cap (as of 2026) |
| Time to request release | Within 14 days of signing a contract |
Tax Saving Example (Income $90k)
| Method | Amount Saved | Tax Paid | Net Deposit |
|---|---|---|---|
| FHSS (in super) | $50,000 gross contribution | ~$7,500 (15% in super) | ~$42,500 |
| Outside super (post-tax) | $50,000 gross income | ~$16,250 (32.5% marginal) | ~$33,750 |
| Tax saving | ~$8,750 | ~$8,750 more deposit |
Key Risks and Limitations
- You must buy within 12 months of requesting release (extendable to 24 months in limited circumstances)
- If you don’t buy, the funds go back into super — you cannot access them until preservation age
- The ATO’s release estimate uses an earnings rate (90-day bank bill rate + 3%) which may differ from your super fund’s actual return
- Only voluntary contributions are eligible — not your employer’s compulsory 11.5% contributions
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