Helping Your Kids Buy Their First Home Using Super

If you’re looking for ways to give your children a boost in saving for their first home, the First Home Super Saver Scheme (FHSSS) is a smart option to consider. It’s a tax-effective strategy that allows young people to grow their deposit faster, provided they meet the eligibility criteria and have never owned property before.

What You Need to Know

What Is the First Home Super Saver Scheme?

The FHSSS allows eligible first-home buyers to make voluntary super contributions and later withdraw those funds – along with earnings – to use toward a home deposit.

How It Works:

• Up to $15,000 per year can be contributed, with a maximum of $50,000 in total.
• Contributions can be made in two ways:
• From age 18 and over, children can apply to withdraw their FHSSS balance (up to $50,000 plus deemed earnings, currently 6.61%) to purchase their first home. Younger savers can start contributing earlier but must be 18 to withdraw.

Why Save Through Super?

The FHSSS offers a tax-effective way to save:

• Reduced taxable income: Salary sacrifice or personal deductible contributions lower the saver’s taxable income.
• Lower investment tax: Earnings inside super are taxed at 15%, usually less than the saver’s marginal tax rate.
• Withdrawal tax savings: When FHSSS funds are withdrawn, the taxable portion is included in assessable income, but a 30% tax offset applies – leaving more money available for the deposit.

Compared to a standard savings account, this can mean a larger deposit in a shorter time.

How Parents Can Help

Practical Considerations

Parents can play an important role in helping their kids save:

• You can gift money to your child, which they then contribute to their own super fund.
• If they make a deductible contribution, it may increase their after-tax income.
• If they’re on a low income, personal after-tax contributions may attract a government co-contribution of up to $500 (though this amount cannot be withdrawn under FHSSS).

👉 Important: Contributions must be made from your child’s bank account, not directly from yours, to qualify for FHSSS withdrawal.

Accessing the Funds

When your child is ready to buy, they must:

1. Apply through myGov to receive a determination from the ATO confirming the maximum amount they can access.
2. Request a release of those funds to be used as part of their deposit.

Final Thoughts

The First Home Super Saver Scheme can be a powerful way to help your children save faster, pay less tax, and reach their property goals sooner. However, strict eligibility rules and timeframes apply.

If you’re considering this strategy, speak with us for tailored advice. With the right planning, your child can make the most of the scheme and step into their first home sooner.

Tommy Li, CA

Director, Verity Advisory  |  Registered Tax Agent  |  Authorised Financial Adviser (ASIC Rep No. 1261831)  |  Member, Chartered Accountants Australia & New Zealand

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Tommy is a Chartered Accountant with 20+ years advising medical professionals on tax, financial structure and practice decisions. He founded Verity Advisory to provide integrated advice for doctors at career-defining financial inflection points — combining tax, lending and financial planning into a single structured approach.