SMSF members can now use First Home Super Save Scheme
The ATO has advised that SMSF members may now use the First Home Super Saver Scheme.
The regulator said the FHSS scheme provides an opportunity for eligible SMSF members to save for their first home through the super system in a tax-effective way.
Under the scheme, members can make voluntary contributions to their super, including through a SMSF and withdraw up to $15,000 of eligible contributions from a single financial year, up to a total of $50,000.
They can also receive associated earnings calculated using a deemed rate set by the ATO, benefit from concessional tax treatment, including a 30% tax offset on eligible FHSS amounts and combine FHSS savings with an eligible partner when buying a home together.
The tax office said the FHSS scheme helps eligible members save for their first home by letting them put extra money into their super in the form of personal voluntary contributions.
They can later withdraw the money to use as part of their home deposit and as super is taxed differently from regular income, this can help savings grow faster.
Voluntary concessional contributions are taxed at 15 per cent, which is usually less than they marginal income tax rate. Assessable FHSS released amounts also benefit from a 30 per cent FHSS tax offset.
There is no requirement to be an Australian citizen or Australian resident for tax purposes to use the FHSS scheme.
Using the FHSS scheme, eligible members can contribute a maximum of $15,000 in any one financial year up to a total maximum of $50,000 across all years.
When they want to access their FHSS amount to buy a home they can withdraw 100 per cent of their eligible personal voluntary contributions for which they have not claimed a tax deduction. These are non-concessional contributions.
Alternatively they can withdraw 85 per cent of eligible personal voluntary super contributions they have claimed a tax deduction for. These are concessional contributions.
They can also choose to withdraw 85 per cent of their salary sacrifice contributions or an amount of associated earnings on both concessional and non-concessional contributions.
When an eligible member is ready to use the funds to help buy a home in Australia, they can request an FHSS determination to work out how much they have available for release and submit a request to release their FHSS amount plus associated earnings.
It’s important they request a FHSS determination before ownership of any real property transfers to them. They must request the determination before settlement of a property contract.
By: Keeli Cambourne | October 20, 2026 | smsfadviser.com
