01 Oct 2025

Helping Your Kids Buy Their First Home Using Super

Helping Your Kids Buy Their First Home Using Super

If you want to give your children a head start on saving for their first home, the First Home Super Saver Scheme (FHSSS) is worth considering. It offers a tax-effective way for young people to grow a deposit more quickly and is open to anyone who meets the eligibility rules and has never owned property.

What is the First Home Super Saver Scheme?

The FHSSS allows first-home buyers to make voluntary contributions into their super fund and later withdraw those funds, plus earnings, to put toward a home deposit.

Here’s how it works:

• They can contribute up to $15,000 per financial year, and up to a maximum of $50,000 across all years in voluntary contributions.
• These contributions can be either:
  • Concessional contributions (CC): such as salary sacrifice or personal deductible contributions.
  • Non-concessional contributions (NCC): after-tax money contributed from their own savings for which no deduction will be claimed.

Children 18 or over can apply to withdraw the total voluntary contributions (up to $50,000), plus notional earnings (currently 6.61%) on these contributions, to buy their first home.

Whilst children must be at least 18 to withdraw an amount for their first home, they can start saving earlier.

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Why use super to save for a home?

One advantage of using the First Home Super Saver Scheme (FHSSS) is the tax savings.

• Contributions made by way of personal deductible contributions or salary sacrifice reduce taxable income, meaning less tax to pay.
• Investment earnings on those contributions are taxed at only 15% inside super, compared to the saver’s marginal tax rate.
• When the funds are withdrawn under the FHSSS, the assessable portion is taxed at the saver’s marginal tax rate, but with a 30% offset applied.

✅ This means less tax and more savings to put toward a deposit.
✅ Overall, more money is saved compared to saving in a regular bank account.

How parents can help

• If your child is working and has a super fund, you can give them money, which they can then contribute themselves to their super fund.
• They may claim a tax deduction on the contribution, boosting their after-tax income.
• Alternatively, they may choose not to claim a deduction.

👉 If your child earns a low income and makes a personal after-tax contribution, they may be eligible for a government co-contribution of up to $500.
⚠️ Note: This co-contribution cannot be withdrawn under the FHSSS, as it is not a personal contribution.

Important:
You cannot contribute directly on your child’s behalf. The ATO requires the contribution to come from your child’s own bank account for it to be eligible for FHSSS withdrawal.

Withdrawing funds

When your child is ready to buy their first home:

1. They apply through myGov to find out the maximum amount they can access under the FHSSS.
2. Once they have the ATO determination, they can request to withdraw up to that amount for their deposit.

Key takeaway

The FHSSS comes with strict eligibility rules and timeframes, so it’s important to get the details right.

👉 If you’re thinking about helping your child save a deposit this way, give us a call. With some forward planning and the right contribution strategy, your child could boost their savings, cut down their tax bill, and step into their first home sooner. $