The First Home Super Saver Scheme (FHSS) allows eligible first home buyers to save for a deposit inside their superannuation fund and withdraw up to $50,000 in eligible contributions (plus associated earnings) to put toward purchasing or building their first home. If you have been making voluntary super contributions under the FHSS and plan to buy in 2027, this guide walks you through the withdrawal process step by step.

What You Will Learn

This article explains how to withdraw your FHSS savings through the Australian Taxation Office (ATO), including eligibility requirements, the application process, timing considerations for a 2027 purchase, and common mistakes to avoid. By the end, you will understand exactly what to do and when.

Step 1: Check Your Eligibility

Before applying to release your FHSS savings, confirm you meet the eligibility criteria. According to the ATO, you must:

  • Be 18 years or older.
  • Have never owned property in Australia (including an investment property, a commercial property, or land).
  • Have not previously made an FHSS release request (unless you recontributed the amount under the recontribution rules after a failed purchase).
  • Intend to live in the property for at least six months of the first 12 months after it becomes practical to move in (or as soon as practical).

You can withdraw eligible voluntary concessional contributions (such as salary sacrifice) and non-concessional contributions (after-tax contributions) you have made since 1 July 2017, plus associated earnings. Employer Superannuation Guarantee contributions do not count toward the FHSS.

The maximum you can release is $50,000 across all eligible contributions, and you can make up to two FHSS release requests if your first purchase does not proceed (requests must be at least 12 months apart).

Step 2: Request a Determination

Your first formal step is to request an FHSS determination from the ATO. This tells you how much you are eligible to withdraw.

Log in to your myGov account and access ATO online services. Navigate to the Super section and select “First Home Super Saver Scheme”. Choose “Request an FHSS determination”.

The ATO will calculate your eligible amount based on the voluntary contributions your super fund has reported, plus deemed earnings. The determination is not binding, it is an estimate. You will typically receive the determination within 15 to 20 business days.

Review the determination carefully. If the amount seems incorrect (for example, a contribution is missing), contact your super fund to ensure all eligible contributions have been reported to the ATO. You can request a new determination once the data is updated.

Step 3: Submit Your FHSS Release Request

Once you are ready to proceed with purchasing or building your first home, submit an FHSS release request. You should do this after you have signed a contract to purchase or build, or when you are confident the purchase will go ahead within the next 12 months.

Return to ATO online services via myGov, go to the Super section, and select “Request a release of my FHSS amounts”. You will need to provide:

  • The date you signed the contract to purchase or build (or your intended settlement date if you have not yet signed).
  • Your nominated bank account details (the ATO will pay the released amount to you, not directly to the seller or your lender).

The ATO issues a release authority to your super fund (or funds, if your contributions are held in multiple accounts). Your fund then has up to 25 business days to release the money to the ATO, and the ATO will pay it to your nominated account, usually within five business days of receiving it from the fund.

Read also: How to Set Up an SMSF in Australia: Costs, Rules, and Who It Suits

Step 4: Receive Your Funds and Sign the Contract

The FHSS amount is paid to you, not to your lender or the property seller. You are free to use it as you see fit, including for the deposit, stamp duty, conveyancing fees, or other purchase costs. However, you must sign a contract to purchase or build a home within 12 months of receiving the money, or you must recontribute it to super under specific rules to avoid penalties.

Once the money is in your account, proceed with your purchase. If settlement is delayed or the purchase falls through, you have options: you can apply for a 12-month extension, or you can recontribute the amount to super and potentially apply again later (subject to the two-request limit).

Step 5: Complete Your Purchase

After settlement, keep records of the purchase contract, the settlement statement, and evidence that you have moved into the property (such as utility bills or a change of address with Australia Post). The ATO may request proof that you met the residency requirement (living in the home for at least six months of the first year).

If your circumstances change and you do not end up living in the property as intended (for example, you need to relocate for work), contact the ATO immediately. Failing to meet the FHSS conditions without a valid reason may result in additional tax.

Tips for Timing in 2027

If you plan to buy in 2027, consider the following:

  • Request your determination early in the year to allow time for any reporting issues to be resolved with your super fund.
  • Submit your release request only after you have signed a contract or are actively searching and confident of signing within a few months. The 12-month contract-signing deadline starts when you receive the money, not when you apply.
  • Be aware of property market cycles and settlement periods. Allow buffer time for conveyancing and any delays.

Note that FHSS caps and tax treatment are subject to legislative change. Verify the current maximum release amount and contribution caps at ato.gov.au before proceeding.

Common Mistakes to Avoid

  • Applying too early: Do not request the release until you are genuinely ready to buy. The 12-month contract-signing deadline is strict.
  • Forgetting the residency requirement: You must live in the property for at least six months of the first 12 months. Investment properties and flips do not qualify.
  • Assuming all super is eligible: Only voluntary concessional and non-concessional contributions count. Employer SG contributions and government co-contributions are not eligible.
  • Missing recontribution deadlines: If the purchase falls through, you must recontribute the amount within the allowed time frame to avoid tax consequences.

Frequently Asked Questions

Can I use FHSS and the First Home Owner Grant (FHOG) together?
Yes, the FHSS is a federal scheme and the FHOG is a state- or territory-level grant. Eligibility and grant amounts vary by state. Check your state revenue office for current FHOG rules.

What if I have multiple super funds?
The ATO will issue release authorities to all funds holding eligible contributions. Each fund will release its portion. The total amount across all funds cannot exceed $50,000.

Do I pay tax on the FHSS amount?
Yes. The released amount is included in your assessable income and taxed at your marginal rate, minus a 30% offset. This is generally more tax-effective than withdrawing the same amount from super without the FHSS.

General Advice Warning

This article provides general information only and does not constitute personal financial advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information in this article, you should consider whether it is appropriate for you and seek advice from a licensed financial adviser if necessary.

Conclusion

Withdrawing your FHSS savings is a straightforward process managed through the ATO via myGov. Request your determination early, submit your release request when you are ready to buy, and ensure you meet the residency requirement after settlement. As covered in foundational texts such as Principles of Finance, understanding the tax treatment and timing of savings vehicles is critical when planning a major purchase. For the most current FHSS rules and caps, always verify details at ato.gov.au before making decisions.