19/05/2026
Saving for a first home deposit in today’s environment can be tough. But there’s a strategy inside super that can help first home buyers save more tax effectively.
It’s called the First Home Super Saver Scheme (FHSSS). You make voluntary contributions into super and claim a tax deduction personally.
Because concessional super contributions are generally taxed at 15% inside super, rather than your personal marginal tax rate, this can create a significant tax saving.
Example:
You earn $120k per year and contribute $15,000 into super as a concessional contribution.
This means your personal taxable income reduces from $120k to $105k.
If your marginal tax rate is 39% including Medicare, but the contribution is taxed at 15% inside super, that’s roughly a 24% tax difference.
On a $15,000 contribution, that could mean around $3,600 more going toward your future home deposit instead of personal tax.
So from $15,000, approximately $2,250 is paid as tax inside super, leaving $12,750 potentially eligible for release under the FHSSS, plus associated earnings when you’re ready to buy your first home.
Current rules allow eligible individuals to contribute up to $15,000 per financial year, and up to $50,000 in total contributions.
So while saving for your first home, you may be able to reduce personal tax, save through a concessional tax environment, and build your deposit more efficiently.
It’s important to understand this strategy is technical and eligibility rules apply, so before implementing anything, speak with your accountant or financial adviser to make sure it fits your situation.