First Home Super Saver vs a Savings Account: Is FHSS Worth It?
Compare FHSS with saving the same reduction in take-home pay in a bank account.
FHSS will often leave an eligible employee with more for a first-home deposit than saving the same reduction in take-home pay in a bank account. At a $100,000 salary, the example on this page turns the same $30,600 three-year household cost into about $42,108 through FHSS or $32,269 in a 5% savings account.
The estimated FHSS lead is about $9,838. In return, the money is harder to access and the contribution and home purchase must meet the scheme rules. Your salary, super contributions and buying timeline can change the decision.
FHSS is individual, even when the purchase is joint
Two eligible buyers can each use their own FHSS savings for the same home. One buyer's previous property ownership does not automatically disqualify the other. Eligibility and the $50,000 contribution limit are checked separately for each person.
Compare FHSS with bank savings
Enter your salary, planned contribution and saving period. The calculator compares your estimated FHSS release with putting the same reduction in take-home pay into a savings account. It also shows how far each amount gets you towards a deposit and transfer duty.
FHSS vs bank savings calculator
Equal take-home cost · 2026–27 tax settings
The FHSS limit is $15,000 of voluntary contributions per financial year.
Enter the ongoing rate you realistically expect after bonus conditions.
Tax and FHSS assumptions
Defaults to the July–September 2026 SIC rate. The calculator holds it constant; the ATO uses each applicable quarterly rate.
Existing salary sacrifice or deductible contributions; exclude employer SG.
Salary sacrifice is added back to repayment income; bank interest can increase it.
Appropriate private patient cover for the full year.
Same household cost over 3 years
$30,600
In year one, $15,000 through FHSS reduces take-home by $10,200. The bank path deposits the same amount of take-home pay.
First Home Super Saver
$42,108
estimated deposit amount after tax
- Eligible gross contributions
- $45,000
- Released after 15% contributions tax
- $38,250
- Deemed associated earnings
- +$4,717
- Estimated release-year tax
- −$859
Savings account
$32,269
estimated deposit amount after tax
- Equal cash deposits
- $30,600
- Gross account interest
- +$2,455
- Estimated tax on interest
- −$786
- Interest kept after tax
- $1,669
Estimated difference: +$9,838 through FHSS
The difference includes tax and ATO-associated earnings. Your actual super return and the FHSS eligibility, access and timing rules sit outside this figure.
Put it against a deposit target
- 20% deposit
- $160,000
- Estimated first-buyer duty
- $0
- Deposit + duty target
- $160,000
The target uses current first-home-buyer duty rules for the state and property type. It excludes transfer fees, conveyancing, inspections, LMI and any grant. ACT concessions can depend on combined household income; the calculation uses the salary entered above.
Assumes equal monthly contributions received by the fund, an Australian resident claiming the tax-free threshold, a constant salary and rates, the automatic $1,000 work-related deduction, and Division 293 paid personally. Bank interest is taxed annually. FHSS release tax is estimated from the full progressive tax calculation less the non-refundable 30% offset, capped at available income tax; the offset does not reduce Medicare levy. Actual ATO withholding can differ. Check your ATO determination and fund rules before relying on a release amount.
How the calculator works
The bank receives the same amount of take-home pay that the FHSS contribution costs you. Bank interest is added monthly and its estimated extra tax is removed each year. The FHSS side applies contributions tax, associated earnings and estimated tax when the money is released.
The calculation uses 2026–27 income tax, Medicare, HELP and super settings. It assumes equal monthly contributions, constant salary and rates, and full-year Australian tax residency. The FHSS deemed rate is held constant for planning. An ATO determination uses the quarterly rates and actual dates that apply to your contributions.
What happens to the same $10,200 each year?
A $15,000 salary sacrifice does not cost someone on a $100,000salary $15,000 in take-home pay. In this example, income tax and Medicare fall by about $4,800, so take-home pay falls by about $10,200. That is the amount the bank path needs to save for a fair comparison.
The FHSS path
The full $15,000 goes into super before personal income tax. The fund generally takes 15% contributions tax, leaving $12,750 as the releasable contribution component. The first-year lead is therefore $2,550 before earnings and the later release tax.
The bank path
The savings account receives $10,200 from take-home pay. The money stays accessible and earns bank interest. That interest is taxable income, so the amount left after tax depends on the saver's income and other circumstances.
After three years
| Step | FHSS | Bank |
|---|---|---|
| Household cash used | $30,600 | $30,600 |
| Contribution or deposits | $45,000 | $30,600 |
| Amount after contributions tax | $38,250 | — |
| Earnings before tax | $4,717 associated | $2,455 interest |
| Tax on release or interest | −$859 | −$786 |
| Money available for the deposit | $42,108 | $32,269 |
Associated earnings are an amount the ATO calculates using a set rate and each contribution date. They are not the actual investment return earned inside super. If the investment earns less, the release can draw on the wider available super balance. If it earns more, the extra return stays in super.
The concessional contribution component and associated earnings are included in taxable income when the release is requested. A 30% FHSS tax offset reduces the tax. After that estimated tax, the FHSS path finishes about $9,838 ahead in this example.
How salary changes the result
Salary changes the tax saved when pay goes into super, the tax on bank interest and the tax when FHSS money comes out. It also changes how much of the concessional contributions cap is already used by employer super.
| Salary | Annual take-home cost | FHSS amount | Bank balance | Difference |
|---|---|---|---|---|
| $60,000 | $10,090 | $41,883 | $31,884 | +$9,998 |
| $90,000 | $10,200 | $42,108 | $32,269 | +$9,838 |
| $100,000 | $10,200 | $42,108 | $32,269 | +$9,838 |
| $120,000 | $10,200 | $41,270 | $32,269 | +$9,001 |
| $150,000* | $8,880 | $37,832 | $27,941 | +$9,891 |
| $180,000* | $6,649 | $27,662 | $20,921 | +$6,741 |
| $200,000* | $4,505 | $20,201 | $14,087 | +$6,114 |
*At $150,000 and above, employer super leaves less than $15,000 of room under the ordinary $32,500 concessional cap. The table reduces the FHSS contribution to fit that room. A verified carry-forward amount may allow more, but the separate $15,000 annual FHSS limit still applies.
Assumptions behind the table
The table uses three full financial years, monthly contributions, a 5% bank rate and a constant 7.43% FHSS deemed rate. It holds 2026–27 tax settings and salary constant. The person is an Australian resident with full-year hospital cover, no HELP debt and no other pre-tax super contributions. Actual rates, dates and tax settings will differ.
The extra money comes with strings
A bank balance can cover an emergency, a rental bond or a different goal if the home purchase changes. FHSS money stays inside super until the ATO and the fund complete the release process. If the purchase does not go ahead, keeping the released money can lead to extra tax.
The visible bank balance is also easier to plan around. An FHSS result remains an estimate until the ATO issues a determination, and the amount available depends on eligible contributions, cap room, contribution dates and the balance the fund can release.
The choice does not have to cover every deposit dollar. Accessible cash can handle emergencies and buying costs, while FHSS holds the part of the deposit that can stay restricted. The calculator shows the financial difference so you can judge that trade-off against your own timeline.
Rules to check before contributing
Check that you meet the FHSS eligibility rules and that your super fund will release FHSS amounts. Employer Super Guarantee contributions, spouse contributions and government co-contributions cannot be released through the scheme.
The limits apply to the full contribution
FHSS can count up to $15,000 of voluntary contributions from one financial year and $50,000 across all years, per person. For pre-tax contributions, 85% of the eligible amount forms part of the release calculation. Contributing more than the annual limit does not move the unused amount into another year.
Your concessional cap matters too
Employer super, salary sacrifice and personal contributions claimed as a deduction share the $32,500 concessional cap in 2026–27. Check contributions across all your funds before adding FHSS savings. Some people can use unused cap amounts from the previous five years, but the amount needs to be confirmed in ATO online services.
Use the date your fund received the contribution
A contribution belongs to the financial year in which the super fund receives it. A payment sent in late June and received in July counts towards the next year's FHSS and concessional limits.
From contribution to home purchase
The timing matters when money moves between payroll, the super fund, the ATO and the property purchase. Work through the steps before relying on the projected release amount.
- Confirm your eligibility, available concessional-cap room and whether your fund will release FHSS amounts.
- Arrange salary sacrifice before the pay is earned, or follow the notice-of-intent rules for a personal contribution you plan to claim as a deduction.
- Check the dates and amounts received by your fund. Payslip dates may be different.
- Request an FHSS determination through ATO online services and check the contribution details before asking for a release.
- Request the full amount you want released. Only one active release request is allowed, and the ATO says payment generally takes 15–20 business days.
- Sign the eligible contract within the allowed period, notify the ATO and meet the rule to occupy the home for at least six of the first 12 months when it is practical to live there.
If the home purchase does not happen
You will generally need to put the required amount back into super or keep it and pay extra FHSS tax. The ATO normally gives you 12 months after the release request to sign a contract and may allow a further 12 months.
- Request the determination before property ownership transfers to you, which is usually at settlement.
- For a determination made on or after 15 September 2024, request the release before signing or within 90 days after signing the contract.
Common questions
Sources and assumptions
Every figure on this page is computed for the 2026-27 financial year using the rates and thresholds published by the sources below, and was last regenerated on 2 August 2026. Rates change each year; check the source before relying on a number.
- ATO — First home super saver scheme
- ATO — Concessional contributions cap and carry-forward rules
- ATO — Individual income tax rates
- ATO — Quarterly shortfall interest charge rates
Technical FHSS and tax sources
- ATO — Guidance Note GN 2024/1: First home super saver scheme
- ATO — Taxation Ruling TR 2024/4: First home super saver scheme
- Federal Register of Legislation — Income Tax Assessment Act 1997, Division 313
- Federal Register of Legislation — Taxation Administration Act 1953, Schedule 1 Division 138
- Australian Government — First Home Super Saver Scheme overview
- ATO — Salary sacrificing super
- ATO — Personal super contributions and notice of intent
- ATO — Division 293 tax on concessional contributions
- ATO — Income for Medicare Levy Surcharge purposes
State and territory duty sources
- Revenue NSW — Transfer duty
- State Revenue Office Victoria — Land transfer duty
- Queensland Revenue Office — Transfer duty
- Western Australia Department of Treasury and Finance — Transfer duty
- RevenueSA — Stamp duty on real property
- State Revenue Office Tasmania — Property transfer duty
- Northern Territory Revenue Office — Stamp duty
- ACT Revenue Office — Conveyance duty