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First Home Super Saver Scheme (FHSS)

What is the FHSS?

The first home super super scheme is a government initiative where it allows tax payers to make personal voluntary contributions into your super fund to help save for their first home.

Why is eligible for the FHSS Scheme?

  • 18 years or older
  • First homebuyer – having never owned property in Australia including investment property, vacant land, commercial property, a lease of land or a company title interest in land
  • Name has to be on the title of the property you buy

How much money does the FHSS actually save me?

Receiving income traditionally from your employer- this is taxed at your marginal tax rate. For incomes over $45,001 – this typically means you are paying 32% tax+
By making voluntary contributions and diverting your income to super instead – you are taxed at a maximum rate of 15% – a considerable tax saving.
Note the FHSS allows you to only deposit $15,000 a year or up to $50,000 total.
On top of the immediate tax saving, your contributions overtime also have associated earnings as your super is likely invested into shares/stocks -this can also be accessed.

On an $80,000 salary, if you take full advantage of the scheme – your deposit can increase $12,000+
See link here to calculate further: https://www.csc.gov.au/calculators/fhsss-calculator/index.html#/calculator/

How do I make personal contributions to super?

There are 2 methods:
1️⃣Email payroll/HR: “Hi, I would like to salary sacrifice $_____ into my super starting next pay cycle, can you send me the forms”
2️⃣If employer doesn’t offer salary sacrifice: make personal after-tax contributions by transferring money to your super account- log into your superfund and click ‘Make a Contribution’ or ‘Add Money’ and follow instructions. You can set up automatic transfers for every week or month. Then lodge a “Notice of Intent to Claim” form with your super fund (to claim deduction at tax time)

Should I use this scheme?

This scheme is a no brainer to use if you are saving for a first home. It doesn’t cost you anything, it’s low effort and it’ll actually save you money. That extra $10,000 it saves you can go to a nice holiday be used to renovate your new home or just put into your emergency fund.