Buying a first home in Queensland

FHSS offers the opportunity to withdraw up to $50,000 (plus investment earnings) in total from your voluntary super contributions to put towards your first home deposit.

If your home ownership plans are still a few years away, now could be a good time to start adding to your own super, so that you’ll have the funds there ready when you are. What’s more, voluntary contributions can come with tax advantages, so you can potentially save even more.

When you reach the point of buying your first home, your FHSS savings can put you on the front foot while the other federal and Queensland first home programs help to bring the funding target within reach.

Saving for your home deposit via the FHSS is pretty simple. It starts with making voluntary contributions to your super.

This can be done through salary sacrificing or contributing from your earnings and claiming a tax deduction, to take advantage of only being taxed at 15% instead of your normal rate (which is usually higher).

You can also transfer from wages (and savings) you’ve already paid tax on. There are limits to how much you can contribute however.

1. Check you’re eligible for the FHSS – are you 18 years old or over and a first home buyer? There’s no Australian citizenship or residency requirement to apply.
2. Check that your super fund allows you to withdraw under the FHSS (Spaceship Super does!)
3. Start out by contributing to your own super in any of the following ways:
   1. Contribute after-tax money to your super and then a claim tax deduction in your tax return.
   2. Salary sacrifice, by asking your employer’s payroll department to send some of your income directly to your super account instead of to you.
   3. Contribute after-tax money to your super account, without claiming a tax deduction.
   • Options a and b count towards your ‘concessional contributions’ annual cap of $30,000 (including your employer contributions) and come with tax savings.
   • Option c counts towards your ‘non-concessional’ annual cap of $120,000.
   • There’s a $15,000 cap on how much you can save via the FHSS each year. 
4. Think financial years. Your annual limits reset on 1 July every year. 
5. When it comes time to start looking for a home, you apply for a FHSS Determination and a release from the ATO.
   Make sure you get the determination before you sign a contract, so you know how much you’re able to withdraw as a deposit.
   Much of the information will be pre-filled, but it will be handy to have a record of your contributions on hand just to check.
6. Buy your property!
   You can make a release request either before or after signing a contract. If making a release request after signing a contract:

• For determinations made on or after September 15, 2024: Submit within 90 days of signing.
• For determinations made on or before September 14, 2024: Submit within 14 days of signing. The amount you withdraw via FHSS will be paid into your bank account. In most cases it will take between 15 and 20 business days. If you make a release request before signing a contract:
• You have up to 24 months (an initial 12 months with an automatic 12-month extension) to sign a contract. After signing a contract, you must notify the ATO:
• For determinations made on or after September 15, 2024: Notify within 90 days of signing.
• For determinations made on or before September 14, 2024: Notify within 28 days of signing.

7. If more than one person is buying the home, each person can use their own FHSS as long as they meet the criteria.
   Even if one person is not eligible, other eligible buyers can still apply for the FHSS.

The Australian Government 5% Deposit Scheme is an Australian Government program designed to help eligible first-time home buyers purchase a home with a deposit of as little as 5% (or 2% for single parents and legal guardians), instead of the usual 20% required by many lenders to avoid the need for Lenders Mortgage Insurance.

Managed by the Federal Government, the Australian Government 5% Deposit Scheme gives applicants the chance to avoid the high cost of Lenders Mortgage Insurance, which can add $10,000 to your expenses.

Generally, to access the Australian Government 5% Deposit Scheme in Queensland, you must meet the following criteria:

• An individual or couple
• An Australian citizen or permanent resident
• At least 18 years of age
• Be owner-occupiers of the property
• Be a first home buyer in Australia, or if you’re a previous homeowner, you haven’t owned or had an interest in property in the past ten years (including owning land only).

Only residential properties fall under the scheme, but these can be:

• An existing house, townhouse or apartment
• A house and land package
• Land and a separate contract to build a home
• An off-the-plan apartment or townhouse.

In Brisbane, the Gold Coast and the Sunshine Coast in 2025, only properties valued at up to $1,000,000 are eligible, and in the rest of Queensland the maximum is $700,000.

Visit the First Home Buyers site for full eligibility criteria.

You can also apply for a Queensland Housing Finance Loan - especially if you’ve been knocked back by retail lenders. Note that the eligibility criteria differ between the Australian Government 5% Deposit Scheme and the Qld Housing Finance Loan, so you do need to check this.