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.

The First Home Super Saver (FHSS) scheme allows eligible first home buyers to withdraw voluntary super contributions to use as a deposit. If you are planning to buy your first home in 2027, understanding the withdrawal process is essential to access your funds on time.

According to the Australian Taxation Office, you can withdraw up to $50,000 of eligible contributions (plus associated earnings) that you have made into your super fund (ATO, 2026). The process involves requesting a determination from the ATO, signing a contract to purchase or construct a home, and then requesting a release of your funds.

What You Will Learn

In this guide, you will learn how to:

  • Check your eligibility to withdraw FHSS funds
  • Request an FHSS determination from the ATO
  • Request a release of your savings
  • Receive and use the funds for your property purchase
  • Meet the ATO’s timing and reporting requirements

Step 1: Confirm Your Eligibility

Before requesting a withdrawal, verify that you meet all FHSS eligibility criteria. You must be at least 18 years old and have never owned property in Australia (including an investment property or one held in a trust). You must intend to live in the property for at least six months of the first 12 months after it becomes practical to move in.

Your eligible contributions include voluntary concessional contributions (such as salary sacrifice) and non-concessional contributions (after-tax contributions) made from 1 July 2017 onwards. Employer Superannuation Guarantee contributions do not count. The maximum you can withdraw is $15,000 from any one financial year and $50,000 in total, plus associated earnings calculated by the ATO.

Check your super fund statements to confirm the amount and dates of your eligible contributions. If you have made contributions across multiple funds, you can release amounts from more than one fund.

Step 2: Request an FHSS Determination

Before you sign a contract to purchase or construct a home, request an FHSS determination from the ATO through your myGov account linked to the ATO. This determination tells you the maximum amount you are eligible to release, including your contributions and the deemed earnings calculated by the ATO.

The ATO will assess your super contributions history and provide a determination within 15 to 20 business days. The determination is valid for the financial year in which it is issued, and you can request a new determination in a later financial year if your plans change.

Requesting a determination does not commit you to withdrawing the funds. It simply provides certainty about the amount available to you and allows you to plan your property purchase budget accordingly.

Step 3: Sign a Contract to Purchase or Construct

Once you have found a property and are ready to proceed, sign a contract to purchase an existing home or construct a new one. You must sign this contract after 1 July 2018 to be eligible for an FHSS release.

The contract must be for a residential property in Australia that you intend to occupy as your principal place of residence. Off-the-plan purchases and house and land packages are eligible, provided you meet the residency requirement.

Keep a copy of your signed contract, as you will need the contract date when you request the release of your FHSS funds.

Step 4: Request an FHSS Release

After signing your contract, request an FHSS release through myGov. You can request a release in the same financial year as your determination or in a later year, but you must request it within 14 days of signing the contract or within 14 days of the end of the financial year in which you signed the contract (whichever is earlier).

When you submit your release request, provide the contract date and other required details. The ATO will issue a release authority to your super fund (or funds) to release the eligible amount.

Your super fund must release the funds to the ATO within 15 to 20 business days of receiving the release authority. The ATO will then pay the funds to your nominated bank account, usually within 5 to 17 business days of receiving the money from your fund.

Read also: Employer Super Contributions in Australia: The Return You Lose by Not Maximising Them

Step 5: Receive and Use the Funds

The ATO will pay the released amount directly into your nominated bank account. The payment will include your eligible contributions plus associated earnings, minus the FHSS tax (which is generally your marginal tax rate minus 30 percentage points).

You must use the funds towards the deposit or other purchase costs (such as stamp duty or legal fees) for the property specified in your contract. The funds must be used within 12 months of the date they are released to you.

If you do not use the funds for an eligible purpose within 12 months, you must request that the funds be re-contributed to your super, or pay an FHSS tax adjustment to the ATO. ASIC MoneySmart recommends keeping clear records of how the released funds are used to meet ATO requirements (MoneySmart, 2026).

Practical Tips for a Smooth Withdrawal

Start the process early. Request your determination well before you begin house hunting, so you know your budget and can move quickly when you find a property. Allow at least 30 to 40 business days from requesting a release to receiving the funds in your account.

Keep all documentation, including your determination letter, contract, and bank statements showing the use of the released funds. The ATO may request evidence that you used the funds for an eligible purpose.

If your settlement date is delayed or your contract falls through, contact the ATO immediately. You may be able to request a new release or re-contribute the funds without penalty, depending on your circumstances.

Common Mistakes to Avoid

Do not request a release before signing a contract. The FHSS scheme requires you to have a signed contract before requesting a release. If you request too early, your application will be rejected.

Do not assume the funds will arrive instantly. The total timeline from requesting a release to receiving the funds can be 20 to 37 business days. Plan your deposit and settlement timeline accordingly.

Do not forget the residency requirement. You must genuinely intend to live in the property as your home. Purchasing an investment property or a property you will not occupy is not eligible, and may result in penalties.

Frequently Asked Questions

Can I withdraw FHSS funds if I am buying with a partner?
Yes. Each eligible person can release up to $50,000 under the FHSS scheme, even if you are purchasing the same property together. You each need to request your own determination and release.

What happens if I change my mind about buying?
If you do not use the released funds within 12 months, you must either re-contribute them to your super or pay an FHSS tax adjustment. Contact the ATO as soon as possible to discuss your options.

How are the earnings calculated?
The ATO calculates deemed earnings using a formula based on the 90-day Bank Bill rate plus 3 percentage points. The exact amount will be shown in your FHSS determination.

Can I make additional contributions after requesting a determination?
Yes, but they will not be included in the current determination. You can request a new determination in a later financial year to include additional contributions made since your last determination.

Conclusion

Withdrawing your FHSS savings to buy a home in 2027 is a multi-step process that requires careful timing and attention to ATO requirements. By requesting a determination early, signing a contract, and requesting a release within the required timeframes, you can access up to $50,000 of your super contributions to help fund your first home deposit. As covered in foundational personal finance texts such as Principles of Finance, strategic savings and withdrawal planning are key to achieving major financial goals like home ownership. Keep detailed records, allow plenty of time for processing, and seek advice from a licensed financial adviser if you are unsure about any aspect of the scheme.