First Home Super Saver (FHSS) Tracker
The First Home Super Saver (FHSS) scheme lets eligible first-home buyers in Australia make voluntary contributions into superannuation, then later release those contributions plus deemed earnings to put toward a first home. The appeal is tax: money salary-sacrificed into super is taxed at the 15% contributions rate inside the fund instead of your full marginal rate, so for many buyers it is a faster way to build a deposit than saving the same dollars in an after-tax bank account. This tracker estimates how much you can release and how much tax the ATO withholds when you withdraw.
There are two kinds of voluntary contributions you can count. Concessional contributions are before-tax money — salary sacrifice and personal contributions you claim a tax deduction for; only 85% of these is releasable because the fund already took 15% contributions tax on the way in. Non-concessional contributions are after-tax money, released in full. On top of your contributions, the scheme adds associated earnings calculated using the ATO's Shortfall Interest Charge (SIC) rate rather than your fund's actual return. In this tool the SIC rate defaults to an illustrative 6.61% p.a. — a figure the ATO updates each quarter, so confirm the current rate.
A worked figure makes it concrete: contributing $20,000 of concessional money on a $100,000 income and leaving it in super for 3 years produces a gross releasable amount of $20,371 ($17,000 net contributions plus $3,371 associated earnings). When released, only about $407 is withheld in tax — an effective rate near 2% — leaving roughly $19,964 in your hands. The low tax is because FHSS withdrawals are taxed at your marginal rate (plus the 2% Medicare levy) minus a 30% offset, which for a 30% marginal earner nets out very small.
How the FHSS release is calculated
The tracker reproduces the ATO's release formula. Two statutory figures anchor it (both ILLUSTRATIVE ASSUMPTIONS that the ATO can change — verify before acting):
- a lifetime release cap of $50,000 of contributions (associated earnings sit on top of this, so the gross release can exceed it);
- an annual contributions guide (the widget hint of about $15,000/year concessional), which interacts with your wider super concessional cap.
Step 1 — Releasable contributions
| Contribution type | Releasable portion |
|---|---|
| Concessional (before-tax) | min(amount, $50,000) × 85% |
| Non-concessional (after-tax) | 100% of amount |
The 85% reflects the 15% contributions tax already paid inside super. In the main example, $20,000 concessional → $17,000 net releasable.
Step 2 — Associated earnings
Earnings are deemed, not your fund's real return:
`` associated earnings = (net concessional + non-concessional) × SIC rate × average holding years ``
At 6.61% p.a. over 3 years on $17,000, that is $3,371. The gross release is the sum, capped so that contributions never exceed $50,000: $20,371.
Step 3 — Withdrawal tax
The assessable part (net concessional + associated earnings) is taxed at:
`` effective rate = marginal rate + 2% Medicare levy − 30% FHSS offset (floored at 0) ``
For a 30% marginal earner that is 30 + 2 − 30 = a small positive number, so the tax withheld is only $407 and you receive $19,964.
Limitations
This is an estimator: it uses the SIC rate (an assumption), the 2025-26 resident brackets, and does not check your eligibility, your wider concessional cap, or your fund's processing. It is not tax advice — confirm figures and eligibility with the ATO and your fund.
Worked example: release $20,000 of FHSS contributions
Inputs: $20,000 concessional, $0 non-concessional, $100,000 gross income, SIC 6.61% p.a., 3-year average holding.
| Step | Amount |
|---|---|
| Concessional contributed | $20,000 |
| Net releasable contributions (× 85%) | $17,000 |
| Associated earnings (SIC 6.61% × 3y) | $3,371 |
| Gross release | $20,371 |
| Tax withheld (effective 2%) | $407 |
| Net received | $19,964 |
The estimated tax saving versus saving the same money in a normal bank account is about $5,600, because the FHSS withdrawal is taxed at your 30% marginal rate less the 30% offset rather than at the full marginal rate.
Same income, contributing up to the $50,000 cap
| Concessional | Gross release | Tax withheld | Net received |
|---|---|---|---|
| $20,000 | $20,371 | $407 | $19,964 |
| $50,000 (lifetime cap) | $50,000 | $1,019 | $48,981 |
At the $50,000 contribution cap, the gross release is $50,000 (the contributions component is capped at $50,000; associated earnings of $8,428 sit on top), with about $48,981 received after tax. All figures use illustrative rates — re-run with the current SIC rate and your real numbers.
Frequently asked questions
What is the First Home Super Saver (FHSS) scheme?
The FHSS scheme lets eligible first-home buyers make voluntary contributions into super and later release them (plus deemed earnings) toward a first home. Because voluntary concessional contributions are taxed at just 15% inside super instead of your full marginal rate, it can build a deposit faster than an after-tax bank account. You apply to the ATO for a determination, then a release.
How much can I release under FHSS?
An illustrative lifetime cap of $50,000 of contributions applies, with an annual contributions guide of about $15,000/year concessional. Associated earnings sit on top of the contributions cap, so the gross release can exceed $50,000. Example: $50,000 of concessional contributions held 3 years releases a gross $50,000 in this tool. Caps change — confirm on ato.gov.au.
Why is only 85% of my concessional contributions releasable?
Concessional (before-tax) contributions already had the 15% super contributions tax taken when they entered the fund, so only the net 85% is counted as releasable. In the worked example, $20,000 concessional becomes $17,000 net releasable. Non-concessional (after-tax) contributions are released at 100% because no contributions tax applied.
How much tax do I pay when I withdraw FHSS money?
The assessable part (net concessional + associated earnings) is taxed at your marginal rate + 2% Medicare levy − a 30% FHSS offset. For a 30% marginal earner that nets to a small positive rate, so on a gross release of $20,371 only about $407 (≈2%) is withheld, leaving $19,964.
What are associated earnings and the SIC rate?
Instead of your fund's actual return, FHSS adds deemed earnings calculated with the ATO's Shortfall Interest Charge (SIC) rate. The tool defaults to an illustrative 6.61% p.a. The formula is (net concessional + non-concessional) × SIC rate × average holding years. On $17,000 over 3 years that is $3,371. The SIC rate is set each quarter, so verify the current figure.
Is FHSS better than saving in a bank account?
For many on a higher marginal rate, yes — the worked example shows an estimated tax saving of about $5,600 versus saving the same $20,000 after-tax, because contributions are taxed at 15% going in and the withdrawal gets a 30% offset. But your money is locked in super until released, eligibility rules apply, and figures here are illustrative — not financial advice.