First Home Super Saver
(FHSS) Calculator AU 2025-26

FHSS is an Australian Tax Office (ATO) scheme that lets first-home buyers contribute voluntarily to super and then release those contributions plus deemed earnings to fund a home deposit. The advantage: contributions inside super are taxed at 15% rather than your marginal rate (16-47%). For a $90,000 earner in 30% bracket, $15,000 salary sacrifice into FHSS saves $2,250 in tax upfront (30% − 15% = 15% × $15k). Released amount is taxed at your marginal rate minus a 30% offset on concessional contributions. Introduced 1 July 2017; lifetime cap raised from $30,000 to $50,000 on 1 July 2022.

Two limits: (1) Annual: $15,000 of voluntary super contributions per financial year (salary sacrifice + personal deductible). Standard concessional cap of $30,000 FY 2025-26 still applies — your $15,000 FHSS contribution counts within that $30k overall cap, so you have $15k of headroom for other concessional contributions. (2) Lifetime: $50,000 total FHSS contributions released across your lifetime. Raised from $30,000 to $50,000 on 1 July 2022. The lifetime cap is on RELEASED contributions, not total voluntary contributions — if you contributed $60,000 voluntarily and released only $50,000, the remaining $10,000 stays in super under standard rules. Most users contribute the $15k annual max for 3+ years to reach the $50k lifetime cap.

The ATO uses a deemed earnings rate to calculate growth on your FHSS contributions — currently the Shortfall Interest Charge (SIC) rate, ~7.38% p.a. compound for FY 2025-26 (set quarterly by the ATO). This is NOT your actual super fund's returns — it's a notional rate the ATO applies. Your actual super fund might return more (which the fund keeps) or less (you still get the deemed earnings). 30 days from your first voluntary contribution to the date of release determines the earnings period. For $50,000 contributed over 3-4 years at 7.38% deemed, accumulated earnings could be ~$7,000-$10,000 on top of the $50,000 — significant boost beyond the underlying tax savings.

Released amount = voluntary contributions + deemed associated earnings. The ATO withholds 30% upfront on the CONCESSIONAL portion + earnings. You reconcile via tax return: actual tax = (concessional + earnings) × marginal rate − 30% offset. Effectively: concessional + earnings taxed at marginal rate; non-concessional (post-tax) portion released tax-free. Example: $90,000 earner, $15,000 salary sacrifice for 3 years = $45,000 concessional + $5,000 deemed earnings = $50,000 release. ATO withholds $15,000 (30% × $50k); marginal rate 30% on $50k = $15,000 tax; net zero adjustment. For higher-bracket earners, the marginal saving applies after the offset.

Requirements at release time: (1) Aged 18 or older. (2) Never owned property in Australia (any property — including vacant land, residential, commercial, even part-ownership) — with limited exception for severe financial hardship. (3) Intend to live in the property as your principal place of residence within 12 months of purchase (or as soon as practical) for at least 6 of the first 12 months of ownership. (4) Have not previously requested an FHSS release. Joint purchasers can each apply if both are first-home buyers — combined household FHSS access $100,000. Living in the property requirement disqualifies pure investment purchases but is satisfied by 'live then rent' if the 6-month occupation condition is met.

Voluntary contributions only: (1) Salary sacrifice (pre-tax, employer-arranged) — concessional, taxed 15% inside super, released as concessional. (2) Personal deductible contributions (Notice of Intent submitted, deduction claimed on tax return) — concessional, identical tax treatment. (3) Personal non-concessional contributions (post-tax from your bank account) — released tax-free (you already paid tax). NOT eligible: employer Super Guarantee (SG) at 11.5% (mandatory, not voluntary); spouse contributions; government co-contribution; downsizer contributions (60+ only). Choose contribution type to match tax outcome: high earners maximize concessional for 15% inside-super tax; low earners may use non-concessional for tax-free release.

Application + release timeline: (1) Apply for an FHSS Determination from ATO (online via myGov) — ATO calculates eligible release amount based on your contributions and deemed earnings. Typically processed within 14-28 days. (2) Receive determination and complete a Release Authority Request via myGov, specifying the amount and destination account. (3) ATO sends Release Authority to your super fund — fund releases within 30 days. Total elapsed time typically 45-60 days from initial application. IMPORTANT: apply BEFORE signing a contract of sale — you cannot apply after signing. The release proceeds must be used to purchase a home within 24 months (extendable by 12 months on hardship grounds via ATO request); failure to use within deadline triggers FHSS Tax (effectively reversing the benefit).

Yes — if you don't sign a contract to purchase property within 24 months (extendable 12 months) of release, you face the FHSS Tax. Mechanic: the ATO assesses 20% additional tax on the released concessional + earnings amount, effectively reversing the tax benefit. Options: (a) Return the released amount to super as a non-concessional contribution within the same window (within standard non-concessional cap, currently $120,000/yr or $360k bring-forward). (b) Apply for ATO discretion to extend the 24-month window — granted for documented hardship (illness, financial difficulty, market disruption). (c) Pay the FHSS Tax and use the funds for other purposes. Most FHSS Tax cases are avoidable with good planning.

Yes — FHSS is per-individual, not per-couple. Each partner can contribute and release independently. Combined first-home deposit: up to $100,000 ($50k × 2). Both partners must be first-home buyers (neither has previously owned property) and both must intend to live in the property. Application is separate (each person applies via their own myGov for their own determination), but the same property purchase is fine — couples typically time releases together. Single FHSS user buying jointly with a non-first-home buyer: only the first-home buyer can access FHSS; the partner's share comes from other sources.

Mechanics-based answer (not advice): for high-income earners, almost always yes due to the 15% tax inside super vs marginal rate outside. Example: $90,000 earner, 30% marginal rate. Save $15,000/yr externally: at 4% interest, after 3 years = $46,800, less 30% income tax on interest = $46,180. Same $15,000/yr via FHSS: $12,750 net into super after 15% (the $2,250 difference per year is direct tax saving), grow at 7.38% deemed = $44,300 + $8,750 deemed earnings ≈ $53,050 gross release. Marginal tax on concessional + earnings: 30% × $53,050 = $15,915 tax owed; 30% withheld upfront = $15,915 reconciles. Net delivered: $53,050 − $15,915 = $37,135. Compare external $46,180 vs FHSS $37,135 — external WINS at moderate income/rate. FHSS BREAKS EVEN around 30% marginal; FHSS BEATS external above 30% marginal. Always run your own numbers.