First Home Super Saver Scheme 2026: Contributions, Release and Timing

Short answer

The First Home Super Saver scheme, or FHSS, can allow an eligible first home buyer to release certain voluntary super contributions and ATO-calculated associated earnings for a home purchase.

The current contribution limits are $15,000 in any one financial year and $50,000 across all years. These are limits on eligible voluntary contributions counted by the scheme, not a promise that $50,000 in cash will be released. The ATO generally counts 85% of eligible concessional contributions and 100% of eligible non-concessional contributions, then adds associated earnings.

An ATO determination is the source of the maximum release amount. This guide and the Deposit Savings Calculator cannot determine eligibility, tax, associated earnings or the amount a super fund will release.

What can count

Eligible amounts can include voluntary contributions made from 1 July 2017:

• salary-sacrifice contributions;
• personal contributions for which a tax deduction is claimed or intended; and
• voluntary non-concessional contributions for which no deduction is claimed.

Compulsory employer Superannuation Guarantee contributions do not count for FHSS release. The SG rate is 12% in 2026-27, and compulsory contributions still use part of the general concessional contributions cap. Check the amounts received by the fund before planning additional salary sacrifice or deductible contributions.

Other excluded amounts can include spouse contributions, government co-contributions, downsizer contributions, excess contributions and contributions required under a law or fund rules. The current ATO guidance also covers certain eligible foreign-super transfer amounts.

Annual and overall limits

The ATO applies:

• a $15,000 eligible-contribution limit for each financial year; and
• a $50,000 eligible-contribution limit across all years.

Contributions are considered in order from earliest to latest. When eligible concessional and non-concessional contributions are made at the same time, the ATO generally treats the non-concessional contribution as made first. The ordering can change the releasable amount because the ATO includes 100% of an eligible non-concessional contribution and 85% of an eligible concessional contribution.

Suppose a person has $50,000 of eligible concessional contributions counted across several years. Before associated earnings, the releasable-contributions component is $42,500, not $50,000. If the same $50,000 were eligible non-concessional contributions, that component would be $50,000. This comparison does not show the different tax treatment or whether either contribution strategy is appropriate.

Associated earnings are deemed, not fund returns

Associated earnings are a notional amount calculated by the ATO using the shortfall interest charge rate. They are not the actual investment return earned inside the super fund.

For a contribution made after the 2017-18 financial year, ATO guidance calculates associated earnings from the first day of the month in which the contribution was made to the determination date. The special 2017-18 starting rule uses 1 July 2017.

This is why a trustworthy FHSS calculator needs the date and type of each contribution, the determination date and the applicable quarterly rates. Applying one annual average rate or using the start of every financial year can misstate the result.

Determination and release sequence

1. Check contribution records across every super fund.
2. Request an FHSS determination through ATO online services linked to myGov.
3. Check the determination and correct errors before requesting release.
4. Make one release request for the amount to be released.
5. Allow for processing before relying on the money for settlement.

The ATO says a valid release will usually take 15 to 20 business days. The payment can take longer or be reduced if a super fund releases less than requested or an amount is offset against a Commonwealth debt.

Do not assume the determination, release request and fund payment happen on the same day. Obtain current timing advice before signing or setting a settlement date.

Contract timing and notification

For an FHSS determination made on or after 15 September 2024, the ATO says a release request can be made before signing or within 90 days after signing a contract. Different 14-day rules apply to determinations made on or before 14 September 2024.

After requesting release, the buyer generally has 12 months to sign a contract to purchase or construct a home. The ATO may extend this by a further 12 months and says a person does not need to apply because it will generally grant the extension unless that would be inappropriate.

For a determination made on or after 15 September 2024, the buyer must notify the ATO within 90 days of signing the contract, unless another period is allowed. The earlier 28-day notification rule applies to determinations made on or before 14 September 2024.

If the person does not sign within the allowed period, the ATO guidance describes choices to recontribute the required amount or keep it and become liable for FHSS tax. Check the amount and deadline with the ATO before acting.

Property and occupancy limits

The person must generally be at least 18 when requesting a determination, must not previously have owned relevant real property in Australia unless the financial-hardship exception applies, and must genuinely intend to occupy the home.

The ATO says the buyer must intend to occupy it as soon as practicable and for at least six of the first 12 months after it is practical to move in.

Vacant land by itself cannot be purchased using FHSS. A construction contract can qualify in the circumstances described by the ATO, including timing the determination and contract correctly. Houseboats, motor homes and premises not capable of residential occupation do not qualify.

Eligibility is tested per person. A partner's ownership history does not automatically make the other person eligible, and an online article cannot determine the result.

Tax on release

The assessable FHSS released amount generally includes the concessional contributions and associated earnings specified in the determination, adjusted if less is requested or released. Non-concessional contributions are not included again in the assessable amount.

The ATO withholds based on an expected marginal rate including Medicare levy, less the 30% FHSS tax offset, or 17% where it cannot estimate the expected marginal rate. The final position is reconciled through the tax return for the financial year in which the release was requested.

These rules make a simple claim that FHSS always beats a bank account unsafe. The result depends on contribution type, marginal tax position, timing, contribution caps, fund fees and insurance effects, the ATO determination and what happens after release.

Checks before contributing or releasing

• Ask the fund whether it can release FHSS amounts and whether fees or insurance may be affected.
• Check compulsory and voluntary contributions against the current concessional and non-concessional caps.
• Keep fund contribution dates and types, not only payslip deductions.
• Lodge any required notice of intent for a personal deductible contribution and obtain the fund acknowledgement.
• Request and verify the ATO determination before relying on a maximum amount.
• Allow enough time for the 15 to 20 business-day release process.
• Keep the contract and ATO notification deadlines visible.
• Budget for transfer duty, conveyancing, inspections and a post-settlement buffer separately.

Use the Property Purchase Cost Calculator for transaction costs and the Borrowing Power Calculator for a general loan scenario. Neither tool is an ATO determination, tax calculation or lender approval.

Sources

• ATO: First home super saver scheme, including contribution, release, contract and notification guidance. Checked 2 September 2026.
• ATO Taxation Ruling TR 2024/4: First home super saver scheme, checked 2 September 2026.
• ATO Guidance Note GN 2024/1: First home super saver scheme, checked 2 September 2026.

General information disclaimer

This guide provides general information only. It is not financial advice, tax advice, superannuation advice, credit advice, an eligibility decision or an ATO determination. Rules and rates can change. Check current ATO and fund information and speak with a registered tax agent or licensed financial adviser where appropriate.

Last updated: 2 September 2026.