The First Home Super Saver Hack: How to Get a $7,500 Boost on Your Deposit (FHSSS)

For many young Australians, saving a deposit for a first home feels less like the great Australian dream and more like the great Australian nightmare. But there is a government-approved savings hack that can get you there significantly faster.

It's called the First Home Super Saver Scheme (FHSSS).

It's not about raiding your existing retirement nest egg.

Our Client's Experience: 

"I recently had the pleasure of working with Ben from Aevum Accounting, and I can’t recommend him highly enough. He was an incredible help with my tax return — professional, thorough, and genuinely easy to deal with. He identified a few deductions I would have otherwise missed and made the whole experience stress-free. I’ll definitely be coming back." — Isaac Seidner

The "Hack" Explained: How You Save Thousands

The magic of the FHSSS comes from a two-part tax-saving trick. If you contribute the full $50,000 to the scheme, the total tax benefit you gain is $7,500. That's a $7,500 boost to your deposit, just from being clever.

Here's how it works.

Part 1: The "In" Benefit (Salary Sacrifice)

The most effective way to use the scheme is with "concessional contributions," usually via a salary sacrifice arrangement.

• In Simple English: Instead of your full salary hitting your bank account (where it's taxed at your high marginal rate), you ask your employer to send a chunk before tax directly to your super fund.

• The Benefit: That money is only taxed at 15% inside your super fund. For most young savers, your normal income tax rate is 30% or more. You've instantly saved at least 15% in tax on your deposit savings, and you've reduced your taxable income for the year.

Part 2: The "Out" Benefit (The Tax Offset)

When you're ready to buy, you apply to the ATO to release the funds. When you withdraw the money, it's taxed... but with a huge discount.

• The Benefit: The amount you withdraw is taxed at your marginal tax rate, minus a 30% tax offset.

This "Net 15% Benefit" (15% saving on the way in, 30% discount on the way out) is what makes the scheme so powerful.

How to Use the Scheme: A Step-by-Step Guide

The government gives this benefit, but it makes you jump through the right hoops to get it.

Step 1: Make Voluntary Contributions

You can contribute a maximum of $15,000 per financial year. The total amount you can save in the scheme across all years is $50,000. (Note: These contributions still count towards your overall annual super caps).

Step 2: Apply for an FHSS Determination (THE CRITICAL STEP)

This is the most important step in the entire process. Before you even think about signing a contract to buy a property, you MUST apply to the ATO for an "FHSS determination."

A determination is simply the ATO calculating and confirming the maximum amount you're allowed to release.

Warning: If you sign a contract before you get this determination, you will be locked out of the scheme completely. All that savvy tax saving will be trapped in your super until you retire.

Step 3: Understand the New Release Rules (Timing is Everything)

The rules on timing have recently changed.

• If your determination was made on or after 15 September 2024, you have 90 days from signing a contract to request the release.

• If your determination was made before that date, you have a much tighter 14-day window.

This is a tricky rule that can easily trip people up.

Step 4: Request Your Release

Once you have your determination and are ready to buy, you apply to the ATO. They authorise your super fund to send the money to them, and the ATO then sends it to your bank account, ready for your deposit.

Get the Hack Without the Headache

The FHSSS is a brilliant scheme, but the process is rigid. Making the wrong type of contribution, failing to lodge a 'notice of intent to claim', or getting the determination timing wrong can cost you thousands or lock your money away.

This is exactly where we help.

At Aevum Accounting, we guide first-home buyers through this entire process. We help you structure the contributions, ensure the paperwork is done correctly, and plan the timing of the determination and release. We’re here to make sure you get the maximum $7,500 benefit from the scheme without any of the costly mistakes.

Don't navigate the red tape alone. Let us handle the admin headache so you can focus on finding your home.

Book a consultation with our team today to get your First Home Super Saver strategy started: https://www.aevumaccounting.com.au/bookings

Disclaimer: The information and strategies shared in this article are for general informational purposes only and do not constitute specific tax or financial advice. Everyone's situation is unique, and tax laws are complex and constantly evolving. For personalized advice tailored to your specific individual or business needs, we always recommend consulting with a qualified professional at Aevum Accounting.