If you’re saving for your first home, the First Home Super Saver scheme lets you shift up to $15,000 a financial year into super and access up to $50,000 in releasable savings to use as a deposit. This guide explains what counts for 2026, how the tax treatment works, and the steps to use FHSS with Australian Retirement Trust and myGov.

What the FHSS is (short)

The First Home Super Saver (FHSS) scheme lets eligible first‑home buyers deliberately make extra voluntary contributions into their superannuation to save for a deposit. Because concessional contributions (salary sacrifice and personal deductible contributions) enter super at a 15% contributions tax rate rather than at an individual’s marginal income tax rate, more of the savings tend to be preserved. After meeting eligibility and timing tests, the ATO will calculate and release eligible contributions plus associated earnings to help with a deposit or build stage payments.

So it’s not the superannuation system handing out grants, it’s a tax‑effective shelter for savings that can be released under strict rules for a first home purchase. The scheme sits alongside other programs like the First Home Owner Grant (FHOG) and state stamp duty concessions, but those are separate and administered by Services Australia and state revenue offices.

Prerequisites, who can use FHSS

Here's the thing, to use FHSS you must meet the ATO’s eligibility tests. The main points are:

  • Be an eligible first home buyer under ATO rules, typically this means you haven’t previously owned property in Australia that you occupied as a home.
  • Make eligible voluntary super contributions: concessional (salary sacrifice, employer contributions above Super Guarantee if salary sacrificed, or personal contributions you claim as a tax deduction) and non‑concessional (after‑tax personal contributions).
  • Be an Australian resident for tax purposes when you request the FHSS determination and release.
  • Request an FHSS determination from the ATO before ownership of the property transfers to you, practically, that means before settlement. The ATO’s online processes via myGov are used to obtain the determination and to request release.

Check the ATO FHSS page for the full legal test: https://www.ato.gov.au/Individuals/Super/First-home-super-saver-scheme/.

Key 2026 numbers and rules

Here are the facts that matter in 2026:

  • FHSS annual contribution cap for counting purposes: $15,000 per financial year (financial year runs 1 July to 30 June).
  • FHSS lifetime cap: $50,000, the ATO won't release more than this total amount to use for a deposit.
  • Concessional contributions tax: these are taxed inside super at 15% on entry. If your income exceeds $250,000, Division 293 tax may apply, an additional 15% tax on concessional contributions for high‑income earners.
  • General contribution caps: concessional cap is $27,500 per year (2026), and the non‑concessional cap is $110,000 per year with bring‑forward rules available in some circumstances. Contributions that exceed caps have their own tax consequences, so keep them in mind when planning FHSS saving.
  • Release proportions: the ATO’s released amount will generally include 100% of eligible after‑tax (non‑concessional) contributions and 85% of eligible concessional contributions (to reflect the 15% contributions tax already paid). The ATO also adds 'associated earnings' for the period between contribution and release using its published calculation method.
  • Tax when funds are released: when the ATO releases FHSS money it becomes assessable income in the year of release and the ATO applies a tax offset to reflect tax already paid in super. The net tax effect depends on individual circumstances. Division 293, Medicare levy and other tax rules can change outcomes for high earners.
  • Other programs: FHSS doesn't replace state or federal first‑home grants or stamp duty concessions, check Services Australia for FHOG details and your state revenue office (for example https://www.revenue.nsw.gov.au for NSW) for any first home concessions.

Step‑by‑step: using FHSS with Australian Retirement Trust

  1. Confirm you’re eligible. Check that you meet the first‑home buyer test and are an Australian resident for tax purposes. Log in to myGov (https://my.gov.au) and review the ATO FHSS checklist before you take action.
  2. Decide how much to contribute. Plan contributions so no more than $15,000 counts per financial year for FHSS purposes and no more than $50,000 in total will be released. Remember concessional contributions use part of your $27,500 concessional cap for the year, and non‑concessional contributions are subject to the $110,000 limit and bring‑forward rules. For example: contributing $15,000 a year for three years gives you $45,000 eligible under FHSS, plus any earnings calculated by the ATO.
  3. Make the contributions. If you’re salary‑sacrificing, set that up with your payroll and Australian Retirement Trust. If you’re making after‑tax personal contributions, use the payment options in your ART member portal (https://www.australianretirementtrust.com.au). And if you want the concessional contribution to be deductible, lodge a valid notice of intent to claim a deduction with your fund and claim the deduction in your tax return for that financial year.
  4. Keep records. Keep payslips, bank transfers, and any notices of intent to claim deductions. The ATO will use your superannuation records to calculate releasable amounts, but having organised paperwork helps if anything needs clarifying with Australian Retirement Trust or the ATO.
  5. Request an FHSS determination from the ATO. When you’re ready to access the money, either because you’re under contract or preparing to sign, log into myGov and request an FHSS determination. The determination shows the releasable amount and is a required step. Do this before ownership transfers (usually prior to settlement).
  6. Apply for the release. After you have a contract to purchase or to construct, and once you’ve received your FHSS determination, request the actual release from the ATO via myGov. The ATO will issue a release authority to your super fund and to Australian Retirement Trust.
  7. Australian Retirement Trust pays the money. ART will process the release once it receives the ATO authority. The released amount (eligible contributions plus associated earnings) is paid to you and must be included in your tax return as assessable income for that financial year. ART’s member services can confirm timing and any paperwork they require, check ART’s FHSS help pages or call their member line.
  8. Finalise the purchase. Use the released funds for deposit or settlement as allowed under the FHSS rules. Keep evidence of the property purchase (contract and settlement docs) in case you need to show the ATO you used the funds correctly.
  • Talk to ART early, they can confirm what contributions have been received and whether they’re recorded as concessional or non‑concessional. That matters for the 85%/100% release split.
  • Make salary‑sacrifice arrangements well before the end of the financial year if you want that year to count towards the $15,000 FHSS cap, payroll timing matters.
  • Watch contribution caps. Even if you aim to use FHSS, exceeding concessional or non‑concessional caps can trigger extra tax or unintended consequences.
  • Plan for Division 293 if your adjusted income looks like it will reach $250,000, extra tax can reduce the net benefit of concessional contributions for FHSS.
  • Use the ATO’s online FHSS estimator tools and ART’s member calculators to model outcomes. Small differences in timing can change the associated earnings applied by the ATO.
  • Assuming all contributions will be released. Only eligible contributions up to the $15,000 per year counting rule and the $50,000 lifetime cap are releasable. Excess contributions remain in super.
  • Missing timing requirements. Don’t wait until after settlement to request the ATO determination, requests must be made before ownership transfers (usually before settlement) and paperwork should be lodged early.
  • Forgetting the tax side. Released FHSS amounts must be included in your tax return. People often forget to factor in Division 293, the Medicare levy or other tax impacts when modelling net proceeds.
  • Mixing up concessional and non‑concessional records. ART must have your contributions correctly classified. Incorrect classification can alter the releasable amount (85% vs 100%) and slow down processing.
  • Relying on FHSS alone. Grants, state concessions and stamp duty relief are separate and have different eligibility rules and application channels.

Related Articles

If Australian Retirement Trust holds your super, FHSS can be a tax‑effective way to build a deposit, but it takes planning. Stick to the $15,000 per year and $50,000 lifetime caps, check ART’s records for contribution types, lodge any deductible contribution paperwork promptly, request your ATO determination via myGov before settlement, and factor in tax rules such as Division 293. For official details, see the ATO FHSS page and contact Australian Retirement Trust or a qualified financial adviser to confirm your eligibility and tax position.

This article was created with AI assistance.