What Is First Home Super Saver (FHSS)?
A government scheme allowing first home buyers to save a deposit inside their super fund, taking advantage of the concessional 15% super tax rate. Up to $50,000 can be released.
Definition
The First Home Super Saver (FHSS) scheme allows first home buyers to make voluntary super contributions specifically to save for a first home deposit, taking advantage of the concessional 15% tax rate on super contributions. From 1 July 2022, the maximum releasable amount is $50,000 of voluntary contributions across all years ($15,000 per financial year). Eligible contributions include salary sacrifice and personal deductible contributions. When you apply to release funds, the ATO calculates the assessable FHSS amount and withholds tax at your marginal rate less a 30% tax offset. The scheme can save significant tax for people who would otherwise save at their marginal rate.
Example
A person on a 34.5% marginal rate (including Medicare Levy) salary sacrifices $15,000 into super for 3 years. They save tax at 34.5% - 15% = 19.5% on $45,000 = $8,775 in tax savings over 3 years, plus the FHSS funds are released with deemed earnings.