First home buyers in Victoria

The FHSS scheme lets you access some of your super to help cover your mortgage deposit - but you can only withdraw super that you paid yourself e.g. through salary sacrifice or a voluntary after-tax contribution for which you claim a tax deduction. 

Effectively this means you’re getting a tax concession to help you save your mortgage deposit! You can also use after-tax contributions on which you haven’t claimed a tax deduction.

If you’re ready to buy and have been topping up your super over the past few years, you might have enough now.

If you’re still saving up, then you could do so through your super, so when you’re ready, you can take out up to $15,000 worth of contributions per year up to $50,000 in total plus the earnings in super.

Saving through FHSS, plus any use of the Victorian first home schemes, can bring first home ownership within reach.

To save money via your super - and the FHSS - all you need to do is contribute to your super, on top of what your employer pays.

Many workers opt for a salary sacrifice, which sees their employer direct an extra amount directly to the employee's super (instead of to their paycheck).

You could also make a voluntary contribution and then claim a deduction at tax time.

Both methods can see those contributions taxed at only 15% rather than the higher tax rate you’d probably pay on your normal wage - up to a certain limit.

You can also make and use any after-tax contributions you make to your super.

Note, there are limits on how much you can contribute to your super each year.

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 to help eligible first-time home buyers buy a home with a deposit of just 5% (or 2% for single parents and legal guardians). The program also means there is no Lenders Mortgage Insurance to pay.

The Australian Government 5% Deposit Scheme was introduced to help first home purchasers avoid expensive Lenders Mortgage Insurance, which can increase costs by $10,000 or even more.

Generally, to meet the 2025 eligibility criteria for the Australian Government 5% Deposit Scheme in Victoria, you must be:

• An Australian citizen
• Over 18 years old
• Intending to live in the home
• A first-time buyer or a previous homeowner who hasn't owned or had an interest in property in Australia for at least the last ten years.

Only residential properties are eligible, but these can include:

• An existing residence, e.g., house, apartment, unit, or townhouse
• Land with a separate contract to construct a home
• A home and land package
• An off-the-plan unit or apartment

In Melbourne and Geelong in 2025, the property value can only be up to $950,000, and in the rest of Victoria, up to $650,000.

Check out the Australian Government 5% Deposit Scheme website for full eligibility details.

Join Spaceship Super - Your super account to start using the FHSS.