First Home Super Saver

Enter how much you'll put into super each year for your deposit, how many years you'll do it, your marginal tax rate (including the 2% Medicare levy) and the return you'd get saving outside super.

The calculator shows how much counts towards the scheme, what you could withdraw, what you'd keep after tax, and how that compares with saving the same money in the bank.

• It assumes your contributions are concessional (salary sacrifice, or personal contributions you claim a tax deduction for), taxed at 15% going into super.
• Earnings are the ATO's deemed rate, not what your fund actually earns. The rate used is shown in the notes below the calculator.
• Only $15,000 a year and $50,000 in total count. Anything over that stays in super until you retire, so the comparison uses the same amounts on both sides.

You make voluntary contributions to your super fund, then later ask the ATO to release them to buy your first home. Because concessional contributions are taxed at 15% instead of your marginal rate, more of your pay goes towards the deposit.

• Up to $15,000 a year and $50,000 in total of voluntary contributions count.
• You can withdraw 85% of concessional contributions (what's left after 15% contributions tax) and 100% of non-concessional contributions, plus deemed earnings.
• Deemed earnings are worked out at the shortfall interest charge rate, which the ATO sets each quarter.
• Your employer's compulsory super guarantee contributions don't count.

On a 32% marginal rate (30% plus Medicare), salary sacrificing $15,000 a year for 3 years:

• $45,000 counts towards the scheme, and about $41,162 could be released.
• Tax on release is about $823 (32% less the 30% offset), leaving $40,339.
• Saving the same pay in the bank after tax at 4.5% gives about $31,998.
• The FHSS puts you about $8,341 ahead.

The concessional contributions and earnings you withdraw are added to your taxable income for that year, but you get a 30% tax offset. So if your marginal rate is 32%, you pay 2%; at 39%, you pay 9%. Non-concessional contributions come out tax-free because you've already paid tax on them.

The benefit is biggest for people on higher tax rates, but it also helps on lower rates because concessional contributions are only taxed at 15% going in.

• You must be 18 or older to request a release, and you must never have owned property in Australia (including an investment property, vacant land or a commercial property), unless the ATO decides you've suffered financial hardship.
• You can only use the scheme once. Couples can each use it for the same home, so together they can save up to $100,000.
• You need to request an FHSS determination from the ATO before you request a release, and have 12 months after requesting a release to sign a contract to buy or build. The ATO can extend this by another 12 months.
• Once you've signed a contract, you must tell the ATO within 90 days.
• You must intend to live in the home for at least 6 of the first 12 months after it's practical to move in.
• If you don't buy, you can put the money back into super as a non-concessional contribution, or keep it and pay an extra 20% FHSS tax.

Voluntary concessional contributions count towards your yearly concessional contributions cap, along with your employer's super. Going over the cap means extra tax, so check how much room you have. The salary sacrifice calculator shows your remaining cap and the tax saving.

Check your super fund accepts FHSS releases and doesn't charge fees that eat into the benefit. Then look at the whole picture for a first home, including stamp duty concessions and how much you can borrow.