News
13 September, 2025
Attention first home buyers
THE Federal Government’s 5% deposit scheme for first home buyers (the Home Guarantee Scheme) has been brought forward to 1 October. This means demand from first-time buyers is set to surge and existing property owners may benefit from rising prices.
If you’re aiming to buy, there are smart ways to boost your deposit before October. One of the most overlooked is the First Home Super Saver Scheme (FHSSS).
In a nutshell, you can make a $15,000 concessional (before-tax) contribution into super and you pay just 15% tax on the way in. When you later withdraw the funds for your deposit, you’re taxed at your marginal rate minus a 30% offset. For someone earning under $135,000, that usually means only the 2% Medicare levy.
At first glance, it looks like you put in $15,000 and can only access $12,450, so why bother? The benefit shows up at tax time. When you lodge your 2026 tax return, you should receive a refund of around $4,800 (32.5% of $15,000). Add this back and you finish with $17,250 or a net gain of $2,250. Not working harder, just working smarter.
Couples can each use the scheme, potentially doubling the benefit. With annual limits of $15,000 and a lifetime cap of $50,000 per person, it can make a meaningful difference to your deposit.
This is the perfect time to look at the bigger picture. Your super is a powerful wealth-building tool, there are options that can earn an extra 1–2% return each year, adding hundreds of thousands to your retirement. It’s also wise to review your personal insurance (life, income protection etc.) and ensure your wills and powers of attorney are in place.
Buying a home is exciting, but don’t treat it as the finish line. It’s the first step toward financial independence, long-term wealth creation, and maybe even an early retirement.
Please note this article is general in nature and does not take into account your financial situation, objectives and needs. Please speak to a qualified financial planner about the appropriateness of this information with regards to your objectives, financial situation and needs.
