First Home Super Saver Scheme: Is It Worth It?

Heard about the First Home Super Saver Scheme but not sure if it’s worth the hassle?

You’re not alone. It sounds technical, government-y, and maybe too good to be true.

But at Nude Home Loans, we’ve helped plenty of first home buyers use the FHSSS to boost their deposit faster — and smarter.

Let’s break down what it is, how it works in 2025, and whether it’s the right move for you.

🤔 What Is the FHSSS?

The First Home Super Saver Scheme (FHSSS) lets eligible first home buyers save part of their deposit inside their super fund.

Why would you do that? Because:

• Super contributions are taxed at just 15%, instead of your normal income tax rate

• This means your savings grow faster and you keep more of what you put in

Then, when you're ready to buy your first home, you can withdraw those savings (plus interest) to put toward your deposit.

🌎 How It Works in 2025

• You can contribute up to $15,000 per year (voluntary concessional or non-concessional contributions)

• The total withdrawal cap is $50,000 per person

• Couples can double that to $100,000 combined

Quick Timeline:

1. Make voluntary contributions to super (salary sacrifice or after-tax)

2. Apply to release funds when you’re ready to buy

3. Use released funds toward your first home deposit

📈 How Much Could You Save?

Let’s say your marginal tax rate is 32.5%. You salary sacrifice $10,000 into super this year:

• You save ~$1,750 in tax

• That money compounds faster

Add that up over 2–3 years and the FHSSS could help you save $5,000+ extra, compared to using a regular savings account.

🌟 Real Example: Alice & Tom, First Home Buyers in VIC

• Both contributed $12,000/year for two years

• Saved ~$5,000 in tax between them

• Released $48,000 total toward their deposit

Result? Bought a $590k townhouse with 8% deposit, avoided LMI, and used their savings faster than they thought possible.

🔐 Who’s Eligible?

To use the FHSSS, you must:

• Be 18 or older

• Never owned property in Australia before

• Live in the home for at least 6 months in the first year

• Not use the funds for investment property

You’ll also need to:

• Apply for a release through the ATO

• Provide correct contribution records (we help with this!)

❌ When FHSSS Might Not Be Right

• You need your deposit within 12 months (release takes time)

• Your income is low and tax savings are minimal

• Your super fund charges high fees or is underperforming

That’s why strategy matters — and why we always assess it case by case.

🚀 Is It Worth It?

In many cases, yes — especially if you:

• Have a stable job

• Are 1–3 years away from buying

• Want to fast-track your deposit without lifestyle sacrifices

It’s not a silver bullet, but it’s a solid, tax-smart tool that could save you years of saving.

✅ Let’s Find Out If FHSSS Fits Your Plan

Don’t guess. We’ll help you:

• Model how much you could save

• Understand the timelines and process

• Combine FHSSS with grants and low deposit options

👉 [Book a free FHSSS strategy session with Nude Home Loans]

No pressure. Just real advice — from real people who’ve helped others do it too.