How can you purchase your first home sooner?

How can you purchase your first home sooner?

The First Home Super Saver Scheme (FHSS) allows you to save money for a first home inside your superannuation fund. This will help first home buyers save faster with the concessional tax treatment within super.

Concessional (pre-tax) contributions are made by individuals under the scheme and in most cases taxed at 15 percent rather than the individual’s personal marginal tax rate. Many employees will be able to use salary sacrifice to make pre-tax contributions.  Individuals who are self employed or whose employers do not offer salary sacrifice will be able to claim a tax deduction on personal continuations.

You are likely to save on tax and you may have access to a greater spread of investments via super which could increase your earnings potential.

You can apply for the release of voluntary contributions up to a maximum of $15,000 from any one financial year and $30,000 in total across all years. Note – you can only apply for release of funds once.

The normal superannuation contribution limits still apply.   The most anyone can contribute to super in pre-tax contributions is $25,000 per year; this includes what your employer pays into super for you.

When savings are released, you will be taxed at your marginal tax rate, less a 30 per cent tax offset.

Contribution limits apply to an individual, so couples will be able to get twice the benefit if they have the capacity to contribute.

Are you looking to purchase your first home or know someone who is?

Please contact Melissa Miller at our office to discuss this further on 08 8373 7277 or email

Please note this is general information only – your personal circumstances need to be considered before proceeding with this strategy.