FHSS Calculator

First Home Super Saver Scheme Explained

The First Home Super Saver Scheme allows Australians to save for their first home inside superannuation, gaining substantial tax benefits along the way. The FHSS calculator helps you understand how much you can contribute, project the tax savings, calculate withdrawal amounts, and determine whether the scheme suits your home purchase goals. For first home buyers navigating Australia's expensive property market, FHSS can provide thousands of dollars in tax benefits.

The scheme leverages super's concessional tax treatment for a purpose outside retirement: accumulating a home deposit. By salary sacrificing into super and later withdrawing those contributions (plus deemed earnings), you pay less tax than saving through a regular bank account. The mechanics are complex, but the benefits are substantial for those who understand how to use the scheme effectively.

The calculator transforms FHSS complexity into clear projections, showing exactly how much you can save, what tax benefits you will receive, and how the scheme accelerates your path to home ownership.

How FHSS Works

The FHSS scheme allows you to make voluntary concessional and non-concessional contributions to super specifically for a first home deposit. These contributions are made through your regular super fund, but flagged as potentially eligible for FHSS release.

Contributing: You can contribute up to $15,000 per financial year and $50,000 in total across all years. Contributions can be salary sacrifice (concessional) or personal contributions (non-concessional or concessional if you claim a tax deduction).

Growing: While in super, your contributions grow at the Shortfall Interest Charge (SIC) rate, a deemed rate set by the ATO regardless of actual fund performance. This provides certainty about withdrawal amounts.

Withdrawing: When ready to buy, you apply to the ATO for release. The released amount includes your eligible contributions plus deemed earnings, minus tax payable on withdrawal.

The process takes careful timing, as you must request a FHSS determination before signing a contract to purchase, then request release after receiving the determination.

Contribution Limits and Eligibility

FHSS Contribution Limits

Mandatory employer super guarantee contributions do not count toward FHSS. Only voluntary contributions made specifically beyond SG are eligible.

Eligibility Requirements

To use FHSS, you must:

• Be at least 18 years old at the time of requesting release
• Have never owned property in Australia (including investment property)
• Not have previously requested a FHSS release
• Intend to occupy the purchased property as your home as soon as practicable

Couples can each use FHSS separately, potentially combining $100,000 in concessional savings ($50,000 each) toward a joint purchase.

Tax Benefits of FHSS

The primary advantage of FHSS is tax arbitrage. Concessional contributions are taxed at 15% within super, rather than your marginal rate outside super. For someone in the 32.5% or higher brackets, this creates immediate savings.

Tax Comparison: FHSS vs Regular Saving

For someone earning $90,000 and saving $15,000:

Over three years saving the full $15,000 annually, the total tax benefit exceeds $8,700 for a 32.5% bracket taxpayer.

The formula for tax savings on concessional contributions:

$$\text{Tax Saving} = \text{Contribution} \times (\text{Marginal Rate} - 0.15)$$

For a 30% marginal rate: $$\text{Tax Saving} = 15000 \times (0.30 - 0.15) = $2,250$$

Withdrawal Tax Treatment

When you withdraw FHSS amounts, the concessional contribution portion is taxed at your marginal rate minus a 30% offset. This withdrawal tax partially reduces but does not eliminate the contribution tax benefit.

$$\text{Withdrawal Tax} = \text{Assessable Amount} \times (\text{Marginal Rate} - 0.30)$$

For a 30% marginal rate: $$\text{Withdrawal Tax} = 50000 \times (0.30 - 0.30) = $0$$

Someone in the 30% bracket pays no withdrawal tax, retaining the full contribution tax benefit. Higher brackets face some withdrawal tax but still achieve net savings.

Net Tax Benefit by Marginal Rate (on $50,000 total contribution)

The 30% offset caps net benefit for high earners, but substantial savings remain across all brackets above the 16% rate.

Deemed Earnings (Shortfall Interest Charge)

FHSS contributions earn a deemed return based on the Shortfall Interest Charge rate, calculated as the 90-day bank bill rate plus 3%. This is not your fund's actual investment return but a standardised rate used for FHSS calculations.

Historical SIC Rates

The SIC rate has increased significantly with rising interest rates, improving FHSS returns in recent years.

Deemed earnings are calculated on the daily balance of eligible contributions:

$$\text{Deemed Earnings} = \sum_{d=1}^{n} \frac{\text{Daily Balance}}{365} \times \text{SIC Rate}$$

These deemed earnings are included in your release amount and taxed as assessable income with the 30% offset.

The FHSS Release Process

Requesting FHSS release involves a two-step process with the ATO:

Step 1: FHSS Determination Apply through myGov/ATO online services for a determination showing your maximum releasable amount. You must do this before signing any property purchase contract.

Step 2: FHSS Release Request After receiving your determination and when ready to purchase, request release of all or part of your eligible amount. Funds are paid to you (not your super fund) within approximately 10-15 business days.

Timeline Requirements

Failing to purchase within the required timeframe triggers either recontributing the amount to super or paying FHSS tax plus a 20% penalty.

Strategic Considerations

When FHSS Works Best

High income earners: Greater tax arbitrage from contributing at 15% rather than higher marginal rates.

Planned purchase timing: Those who know they want to buy in 2-3 years can maximise the three years of contributions.

Disciplined savers: The super lock-up prevents using FHSS funds for other purposes, enforcing savings discipline.

When FHSS May Not Suit

Immediate purchase plans: The scheme requires time to build up contributions. Those buying within months get limited benefit.

Low income earners: Those in the 16% bracket gain minimal tax benefit and face opportunity cost of tied-up funds.

Uncertain buyers: If home ownership plans are uncertain, locking funds in super with potential penalties for non-purchase creates risk.

FHSS vs Regular Savings Comparison

Consider someone earning $80,000 saving $15,000 annually for three years:

The FHSS delivers approximately $8,600 more toward the deposit through tax savings and higher deemed earnings.

Couples Using FHSS

Both partners in a couple can use FHSS independently, potentially contributing $30,000 per year combined and $100,000 total. This can significantly accelerate deposit accumulation.

For a couple both earning $85,000 and contributing $15,000 each annually for three years:

• Combined contributions: $90,000
• Combined tax savings: ~$16,000
• Combined deemed earnings: ~$8,000
• Combined release (approximate): ~$98,000

The calculator can model couple scenarios, showing combined benefits and release amounts.

Using the Calculator

Enter your income, planned annual contribution, and expected savings timeline. The calculator computes your tax savings from concessional contributions, applies the SIC rate for deemed earnings, calculates withdrawal amounts after tax, and shows the total deposit available.

Compare FHSS against regular savings to quantify the scheme's benefit for your situation. See how different contribution amounts and timelines affect outcomes.

Model couple scenarios by running calculations for each partner and combining results. Understand how joint use of FHSS accelerates your combined savings.

Explore release timing to understand how SIC rate changes affect your deemed earnings. Consider whether waiting longer to maximise earnings outweighs the property price growth during that period.

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The First Home Super Saver Scheme transforms super's tax advantages into home deposit assistance, providing thousands of dollars in benefits for first home buyers. The calculator clarifies this complex scheme, showing exactly how contributions, tax savings, and withdrawals combine to accelerate your path to home ownership. For those planning their first purchase with lead time to accumulate contributions, FHSS offers one of Australia's most valuable tax benefits available to ordinary taxpayers.