FHSS – First Home Super Saver Scheme – Factsheet

FIRST HOME SUPER SAVER SCHEME
When it comes to buying your ˜rst home, saving enough money for a deposit can be a big
challenge. Not to mention the issue of housing affordability. To give people a faster way to save,
the Federal Government introduced the ‚First Home Super Saver™ scheme (FHSS) in 2017.
The FHSS lets you save for a ˜rst home deposit using money
added to your super account, as well as (or instead of) your
bank account savings.
The super system is different to the banking system; the
return on these savings could be higher than the interest
offered by a bank, and super is usually taxed at a lower rate.
Both these factors mean people should be able to save a
deposit (or part of a deposit) faster by using their super
account.
HOW DOES IT WORK?
Under FHSS rules you can make extra contributions into your
super account (called voluntary contributions) to fast-track
your super.
These contributions must be made by you. Compulsory super
payments (super guarantee) from an employer don™t count.
When you™re ready, these amounts can be withdrawn, minus
tax, PLUS a pre-determined (or ‚deemed™) rate of return on
top of the original contributions.
The deemed rate is set by the Australian Tax Of˜ce (ATO) and
will be different to what your super may have earned. This is
not a bad thing. It means it™s guaranteed your FHSS savings
will grow, even if super returns go down.
Currently, the most you can contribute for FHSS purposes
is $15,000 a year and $30,000 in total. But this amount will
increase on 1 July 2022 to $50,000 in total.
WHO IS ELIGIBLE?
To be eligible, you must:

>
be 18 years old or older

>
have never owned property in Australia before

>
not have previously accessed your super under the FHHS
scheme

>
live in the house you purchase using the FHSS scheme for
at least 6 months within the ˜rst 12 months of owning it.
Go to
ato.gov.au
to learn more about eligibility.
‚S O, I T™S
M Y
MONEY THAT

I
PUT INTO MY SUPER ACCOUNT,

ON TOP OF
WHAT MY EMPLOYER
ALREADY PAYS?™
YES.
Under the FHSS scheme, only voluntary
contributions are counted towards the total amount of
money that can be released for a home deposit.
This table helps to explain the types of voluntary
contributions eligible as part of the FHSS scheme.
TYPES OF VOLUNTARY CONTRIBUTIONS
Voluntary Concessional Contributions (before tax)
Salary

sacri˜ce
Your employer takes extra money
from your pay before tax and sends
it to your First Super account on top
of the compulsory super payments
they already make for you.
Voluntary Non-Concessional Contributions (after tax)
Personal
contributions
These are contributions you make
from your bank account into your
super account by EFT or BPAY.
(If you later claim these as tax-
deductible contributions, they still
count for FHSS purposes.)
KiwiSaver Contributions
Balance

transfers*
These are transfers from a New
Zealand super fund to an eligible
Australian fund, like First Super.
*Only certain types of super contributions that form part of your balance
can be counted. Contact the ATO at
ato.gov.au
or
13 10 20
to ˜nd out

if you can withdraw your KiwiSaver for a ˜rst home.
Learn how to set up these types of contributions at
˜rstsuper.com.au/grow-my-super
.

FIRST HOME SUPER SAVER SCHEME˚ PAGE2
IMPORTANT\!
The ATO is responsible for setting and applying the rules for the FHSS scheme. They decide who is eligible
to qualify for the scheme. As your super fund, First Super will invest any contributions you make as normal but can only
release money under the FHSS scheme when instructed by the ATO. It™s important you read the full rules on the ATO
website at
ato.gov.au
before you make contributions for the purposes of saving for a home.
Important information:
The material contained in this bulletin is accurate and reliable as at August 2021.
Past investment returns are not a reliable indication of future returns.
This information is of a general nature only and does not take into account your personal circumstances or
situation. We recommend that you seek quali˜ed ˜nancial advice before making any investment decision. The
bulletin is provided by First Super Pty Ltd ABN 42 053 498 472, AFSL No. 223988, as the Trustee of First Super
ABN 56 286 625 181. If you intend to invest in or continue to hold this product you should obtain and consider a
copy of the Product Disclosure Statement which is available by phoning 1300 360 988.
First Super Pty Ltd
ABN 42 053 498 472
AFS Licence No: 223988
RSE Licence No: L0003049
First Super Pty Ltd

as Trustee of First Super

ABN 56 286 625 181
WE’RE HERE TO HELP, SO LET’S TALK
Call our Member Services team weekdays 8am Π6pm (Melbourne time) for general advice, and if you want

to dig a bit deeper we can arrange an appointment with our Financial Planners or Member Services Coordinators.
1300 360 988
˜rstsuper.com.au
mail@˜rstsuper.com.au
SOUNDS GOOD\! IS THERE A CATCH?
Like any scheme, the FHSS scheme has advantages and
disadvantages. The clear advantage in using the super
system is that it can speed up your saving, and you may pay
less tax and could get a higher return on your money.
The downside is the risks, rules, and complexities that can
be dif˜cult to understand. Saving for a deposit takes time.

If you happen to change your mind, or are unable to purchase
your ˜rst home, the amount of money you saved into super
cannot be withdrawn. It will stay in your super account as
part of your retirement savings.
EXAMPLE: DIMITRI USES THE SUPER SYSTEM TO BUY HIS FIRST HOME
Dimitri starts
adding extra
money into his
super by salary
sacri˜ce and from
his bank account.
Dimitri logs into his
MyGov account and
applies for a FHSS
determination

and release.
The ATO approves
the release.

They issue a
‘release authority’
to First Super.
First Super
releases the
requested amount
to the ATO.
The ATO deducts
tax at Dimitri’s
marginal rate, less
a 30% offset, and
then transfers the
balance to Dimitri.
Dimitri uses his savings for a deposit and purchases his ˜rst home.
Dimitri wants to save money for a deposit on his ˜rst home.