First Home Super Saver: is it actually worth it?
The First Home Super Saver scheme lets you contribute up to $50,000into your super for use as a house deposit. The pitch is generous on paper, but whether it's actually worth it depends on your marginal tax bracket and the alternative — saving the same dollars in a high-interest account. This calculator shows the after-tax outcome both ways.
For computing your marginal income tax rate.
Capped at $15,000/year for FHSS purposes. Total $50,000 cap across all years.
Most users contribute 2–4 years before withdrawing.
Concessional = pre-tax (salary sacrifice or deductible personal contribution). Non-concessional = post-tax personal contribution.
Detailed breakdown
- Gross contributed (uncapped)
- $45,000
- After FHSS caps
- $45,000
- Net into super (post 15% contributions tax)
- $38,250
- Releasable contribution amount
- $38,250
- Deemed associated earnings
- $4,303
- Total releasable (gross)
- $42,553
- Tax on release (effective rate)
- $851 (2.0%)
- Net deposit funds
- $41,702
How the scheme actually works
FHSS is administered by the ATO. The mechanics:
- You make voluntary contributions into your super — up to $15,000 per financial year, $50,000 total. Contributions can be concessional (salary sacrifice or deductible personal) or non-concessional (post-tax personal).
- When you're ready to buy your first home, you apply to the ATO to release the eligible contributions plus deemed associated earnings.
- The ATO releases the money to you (with withholding tax deducted) and you have 12 months to use it for your deposit (extendable once by another 12 months on application).
Why FHSS usually beats saving outside super
Concessional contributions are taxed at 15% going into super instead of your full marginal rate. When released, the taxable component (contributions plus earnings) is taxed at your marginal rate minus a 30% offset. For most middle- and high-income earners, that round-trip is materially better than saving the same gross dollars outside super.
Non-concessional contributions don't get the entry tax discount, but the deemed earnings inside super grow at the SIC rate (typically 8% in 2025–26) and are released with the same 30% offset. This is meaningfully better than typical AU high-interest savings rates (~4% net 2026) taxed annually at marginal.
When FHSS doesn't make sense
The scheme stops being a clear win at very low incomes. If your marginal income tax rate is 16% (incomes between $18,200 and $45,000), you actually paymore tax going into super (15% contributions tax) than you would on the equivalent outside-super savings. The 30% offset on release helps but doesn't fully offset.
FHSS also locks money up. Once contributed, you can only release it under the FHSS rules (or under standard super preservation rules — typically not until age 60). If you might need the cash for any reason other than a first home deposit in the next 1–3 years, that lock-up is a real cost.
What about partner contributions?
FHSS is per-individual. Couples can each contribute up to $50,000, stacking to $100,000 across two super funds. Both partners must independently meet the eligibility test (never owned property in Australia, intend to live in for 6+ months in the first 12). The calculator above models a single individual — multiply by two if you're running it for a couple.
What this calculator doesn't model
- Division 293 surchargeon concessional contributions for very high earners (income + concessional contributions over ~$250k). If you're in this bracket the FHSS advantage shrinks.
- Concessional cap interactionswith your employer's Superannuation Guarantee contributions. The annual concessional cap (currently $30,000) covers SG + salary sacrifice + deductible personal — only the first $15,000 of your voluntary stream counts toward FHSS release.
- Low Income Super Tax Offset (LISTO), which can rebate some of the 15% contributions tax for incomes under $37,000.
- Stamp duty FHB concessions in your state (NSW, VIC, QLD all have separate first-home buyer concession schemes that can sit alongside FHSS — see our stamp duty calculator).
- Daily SIC compounding.The ATO calculates deemed earnings daily from a 90-day Bank Bill rate plus 3%. We use a simple approximation that's within ~3% of the precise figure for typical inputs.
- Mid-year contribution timing.The calculator assumes contributions are made evenly through the contribution period. If you're making a big one-off contribution close to your release date, your earnings will be lower.
For a settlement-binding figure, run your specific situation through the ATO FHSS calculator or talk to your accountant.
Methodology
Computation uses 2025–26 AU resident income tax brackets (post-Stage-3-cuts schedule), 2% Medicare levy above the standard threshold, and ATO release rules current as of April 2026.
- FHSS rules: ATO First Home Super Saver scheme
- Concessional release rate: 85% of contributions, plus 100% of deemed associated earnings.
- Non-concessional release rate: 100% of contributions (tax-free), plus deemed associated earnings (taxable at marginal − 30% offset).
- Deemed earnings rate: approximation at 7.5% (the SIC rate — 90-day Bank Bill rate plus 3% margin — trends in this range in 2024–26).
- Outside-super comparison rate: 4% p.a. on high-interest savings, taxed at marginal each year. Real current rates are widely advertised at 4.5–5.0% but include introductory periods, balance caps and minimum-deposit conditions, so we use a conservative net assumption.
- Source: lib/fhss-calc.ts.
Working out the full cost of buying your first home?
Two other tools sit naturally alongside this one: stamp duty across every state, and the mortgage comparison-rate calculator that fixes the $150k / 25-year flaw in regulated comparison rates.
Get notified when FHSS rules change
The federal government reviews FHSS settings most years. We'll email you when caps or rates move materially — no filler.