Understanding how your maximum release amount is calculated and getting the timing of your application right, is critical when using the First Home Super Saver (FHSS) scheme.
Below is a detailed guide on how the Australian Taxation Office (ATO) calculates your payout, how contribution ordering rules work, and the exact deadlines you must meet.
How much can you access?
Your maximum FHSS release amount consists of two parts:
- Your eligible releasable voluntary contributions
- The associated earnings calculated on those contributions
Cap Limits
To qualify for release, your voluntary super contributions are subject to strict caps:
- $15,000 per financial year: Maximum total voluntary contributions counted in any single financial year (starting from 1 July 2017).
- $50,000 lifetime cap: Maximum total voluntary contributions counted across all financial years.
Calculating Your Withdrawal Amount
When you request a release, the ATO calculates your final payout based on contribution type:
- 100% of eligible personal after-tax (non-concessional) contributions.
- 85% of eligible before-tax (concessional) contributions (accounting for the 15% contributions tax paid by your super fund).
- Associated earnings on both contribution types, calculated using the ATO’s deemed rate (shortfall interest charge rate).
Note on Caps: To determine if you’ve hit the $15,000 annual or $50,000 total limits, all voluntary contributions are assessed in full at their original face value, regardless of whether they are concessional or non-concessional.
Calculation Examples
- Annual Cap Example: If you salary-sacrifice $25,000 in concessional contributions within a single financial year, only $15,000 counts as an eligible FHSS contribution due to the annual limit. When you apply to release those funds, 85% of that capped amount $12,750 will count toward your release payout. The remaining $10,000 stays in your super as standard savings.
- Lifetime Cap Example: If you contribute $1,500 per month via salary sacrifice over several years, you will eventually hit the $50,000 lifetime cap. In that scenario, your maximum releasable contribution base is 85% of $50,000 ($42,500). Adding $5,190 in deemed associated earnings brings your final maximum release amount to $47,690.
How the ATO Orders Your Contributions
The timing and type of your voluntary contributions affect the final amount released under the scheme. The ATO applies two key ordering rules:
- First-In, First-Out (FIFO) Rule: Contributions made in an earlier financial year are counted before those made in later years. Contributions made within the same financial year are counted in the order they were deposited.
- Simultaneous Contributions Rule: If you make both before-tax and after-tax contributions at the exact same time (such as within the same payroll process), the ATO counts the after-tax contributions first. This maximizes your payout, as 100% of after-tax contributions are released compared to 85% for before-tax contributions.
Priority Example: If your concessional and non-concessional contributions arrive in the same financial year and you reach the $15,000 cap, whichever contribution type was received earlier that year takes priority. Any contributions exceeding the cap after that point cannot be counted for release.
When to Request a Determination
You must request an FHSS determination before property ownership officially transfers to you which generally occurs at the settlement of a property contract.
Once legal ownership of real property (including vacant land) has transferred to your name, you are no longer eligible to request a determination.
Timing Considerations & Scenarios
- Building on Vacant Land: If you sign a contract to purchase vacant land, you must receive your FHSS determination before your name is registered on the land title. Once your title interest is registered, you cannot request a new determination. You must then enter into a contract to construct your home within 12 months of making your release request (extensions of up to an additional 12 months may be granted by the ATO).
- Off-the-Plan Purchases: For off-the-plan properties, you must ensure that within 90 days of signing the contract, you have requested your FHSS determination, requested your release, and notified the ATO of the contract to avoid paying additional FHSS non-compliance tax.