First Home Super Saver
Speed up your home deposit.
Boost your first-home deposit by up to $15,000*
How do you get to $15k?
This example assumes that in six years, an $80K earner saving $510/month could boost their deposit by $15K with a 7.34% p.a. FHSS deemed return versus 4.5% p.a. bank interest.
But, how though?
When you save via superannuation the government charges you 15% tax on the money you earned to put in there, even if you're taxed at 30-45% on your normal income.
I want to know more.
Read more about the FHSS and explore case studies here.
*These calculations are estimates and don't factor in your personal situation, but they're a great way to understand how the FHSS can work.
How come I haven't heard about this?
You're not alone... Savings in the scheme get taxed at 15% - you can reinvest the tax saving/return, boosting your deposit!
How does FHSS Compare to savings accounts?
Charlie is trying to save $50,000.
VS
Charlie is 24, earns $80k p.a. and their goal is a ~$50k deposit to go halves with their sibling on a $840k unit in the next 5-7 years. They can save a maximum $510 a month.
Comparison
FHSS
Bank Savings
Savings
$35.0k
$35k
Tax deduction reinvested
$7.5k
nil.
Total savings
$42.5k
$35k
Example gains or interest
$11.2k
$3.6k
Deposit balance
$53.7k
$38.6k
Ready to buy
6 years
Later...
See the FHSS and savings breakdown
See the FHSS and savings breakdown
Graph values
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
FHSS
Savings
$6,120
$12,240
$18,360
$24,480
$30,600
$35,000
Tax deduction reinvested
$1,311
$2,623
$3,934
$5,246
$6,557
$7,500
Total savings
$7,431
$14,863
$22,294
$29,726
$37,157
$42,500
Example gains
$255
$1,094
$2,561
$4,703
$7,572
$11,207
Deposit balance
$7,687
$15,957
$24,855
$34,428
$44,729
$53,707
Ready to buy
Year 6
Savings
Savings
$6,120
$12,240
$18,360
$24,480
$30,600
$35,000
Tax deduction reinvested
$0
$0
$0
$0
$0
$0
Total savings
$6,120
$12,240
$18,360
$24,480
$30,600
$35,000
Example interest
$83
$370
$862
$1,567
$2,492
$3,641
Deposit balance
$6,203
$12,610
$19,222
$26,047
$33,092
$38,641
Ready to buy
Not yet...
Charlie isn't a real person. This example is for illustration purposes only to compare the scheme to a savings account. Estimates are rounded and based on the following assumptions: future dollar terms, wages growing at 3.5% p.a., and inflation at 3.5% p.a. Additional assumptions include a FHSS deemed earnings rate of 7.34% p.a. versus a gross bank interest savings rate of 4.5% p.a.; quarterly FHSS contributions.
How many years sooner can you save for a home? Find out in just 5 minutes.
How does FHSS Compare to regular investing?
Sally and Remy are aiming for a $200k deposit
VS
Sally earns $90k p.a. & Remy earns $70k p.a., together they save $1,020 per month. They have $100k in the bank and ETFs, and want to max out the scheme to buy in the next 5-7 years.
Comparison
Couple's FHSS
Joint shares
Savings
$70.0k
$70.0k
Tax deduction reinvested
$15.0k
Nil.
Total savings
$85.0k
$75.0k
Example gains or interest
$22.4k
$14.9k
Deposit balance
$107.4K
$84.9K
Ready to buy
6 years
Later...
See the couple's FHSS and investment breakdown
See the couple's FHSS and investment breakdown
Graph values
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
FHSS
Savings
$12,240
$24,480
$36,720
$48,960
$61,200
$70,000
Tax deduction reinvested
$2,623
$5,246
$7,869
$10,491
$13,114
$15,000
Total savings
$14,863
$29,726
$44,589
$59,451
$74,314
$85,000
Example gains
$510
$2,188
$5,121
$9,405
$15,143
$22,414
Deposit balance
$15,373
$31,914
$49,710
$68,857
$89,458
$107,414
Ready to buy
Year 6
Savings
Savings
$12,240
$24,480
$36,720
$48,960
$61,200
$70,000
Tax deduction reinvested
$0
$0
$0
$0
$0
$0
Total savings
$12,240
$24,480
$36,720
$48,960
$61,200
$70,000
Example interest
$323
$1,451
$3,420
$6,282
$10,096
$14,912
Deposit balance
$12,563
$25,931
$40,140
$55,242
$71,296
$84,912
Ready to buy
Not yet...
* Sally and Remy aren't real people, but our calculations are based on how the scheme works. Estimates are a simple sum of two individual examples and aren't actually joined together for the FHSS. Numbers are subject to rounding and based on the assumptions above in future dollar terms and wages increasing at 3.5% p.a. and inflation at 3.5% p.a.. Additional assumptions include an FHSS deemed earnings rate of 7.34% vs a gross investment return rate of 8.64%. This calculates FHSSS contributions quarterly.
Achieve your FHSS goals with Pearler
Track your goals, investments, savings, and FHSS in any super fund for free with Pearler.
Still unsure?
Saving beyond a regular savings account doesn't have to be scary. Safeguards are in place to support your journey to home-ownership.
Cash options for extra safety
Save using a high-interest cash ETFs or similar investments as a lower-risk way to grow your FHSS savings (read more).
It's a government policy
The FHSS scheme was created to help support first home buyers, like you (read more).
Your money isn't locked away
Unlike compulsory super contributions, voluntary deposits can be withdrawn for your first home (read more).
You can withdraw early
Withdraw your super contributions and earnings up to 12 months before signing your first home contract (read more).
How much does it cost?
The First Home Super Saver scheme doesn't cost anything. It's just a government scheme. To start, you'll need an active super fund, so it's worth checking the fees and whether you need to get financial advice beforehand.
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