Can you use your super for a house deposit?

If you're struggling to get into the housing market, you may be able to use eligible superannuation savings for a house deposit.

About 68% of Australians say they can't save as much as they would like¹, but as a first home buyer, you could potentially use the First Home Super Saver (FHSS) scheme to save for a deposit using your super.

While it may not be possible to use your entire superannuation savings, the FHSS scheme allows you to withdraw an eligible portion of your super contributions to help you buy your first home.

The FHSS scheme allows for voluntary super contributions you have made to super to be released to purchase a first home.²

You can access up to $15,000 of eligible contributions from any one financial year, up to a maximum of $50,000 across all years, plus associated earnings for the purchase of a first home.³ For couples, this means up to $100,000 of voluntary contributions may be used if both are eligible for the scheme. Superannuation contribution cap limits still apply and this may limit how much you can contribute.

• You are 18 years or older when requesting a determination
• You have never owned a property in Australia before (unless approved due to financial hardship), including an investment property
• You have not previously released FHSS scheme funds
• You must either live or intend to live in the premises you are buying as soon as possible
• You intend to live in the property for at least six months of the first 12 months you own it.

Everyone’s financial situation is different. It’s important to think about your own financial goals before deciding if the FHSS scheme is right for you. Here are some pros and cons to consider:

Earn returns

The associated earnings you can withdraw under the scheme and investment returns on your contributions may be more than you’d get in a bank savings account.

Potential tax savings

Concessional contributions to your super are generally taxed at 15%, plus there is a tax offset when you take it out. This could be lower than your normal tax rate, helping you to save money faster.

Buy a house with a partner

If you're buying the house with someone else (e.g. partner or flatmate), they can also add up to $15,000 per year to their own super to help save for the deposit.

Timeframes

You have 12 months to buy a house with the money (or 24 months with an extension).

Tax and risk

If you're on a lower income, there's much less tax benefit to storing money in super for a deposit. Depending on your super investment options and risk profile, your remaining super could be lower if there's a change in the market.

Time limits

You must notify the ATO within 90 days once you sign a contract to buy or build a home. If you don’t end up using the money you've taken out to buy a house within 12 months (or 24 months with an extension), you must recontribute the amount back to your super, or the ATO may charge you an extra 20% tax.

Budget pressure

If you make extra contributions to your super from your salary, you'll have less take-home pay.

Limits on properties

You can only use it for a first home in Australia. It can't be for investment properties, vacant land (unless you have a contract to build), houseboats or caravans.

Be aware

It takes up to 20 business days for the ATO to release your super for your deposit.

Make voluntary contributions with your details from Member Online or check with your employer’s payroll department to see if you can set up salary sacrifice. Before making any decisions on the FHSS scheme we recommend speaking with your financial adviser.

1. Survey of 1000 Australians carried out by IPSOS on behalf of Australian Retirement Trust, September to November 2023.

2. Subject to eligibility and conditions. These contributions must be within existing contribution caps.

3. Australian Taxation Office, First Home Super Savings Scheme, accessed 15 January 2024 at ato.gov.au