FHSS: Determination, Release & Settlement Checklist

1. Check eligible savings before planning the release

The First Home Super Saver scheme can release eligible voluntary super contributions, not your entire super balance or compulsory employer contributions. Up to $15,000 of eligible contributions per financial year and $50,000 overall per person may count. Ordinary super contribution caps still apply.

The release calculation includes 100% of eligible non-concessional contributions and 85% of eligible concessional contributions, plus associated earnings calculated under ATO rules. Associated earnings are not the fund's actual investment return. Release tax and possible Commonwealth-debt offsets mean the amount received can differ from the headline contribution total.

• Ask your tax adviser which contributions qualify.
• Check contribution caps and notices for personal deductions.
• Keep emergency and contract-deposit cash accessible outside super.

2. Request an ATO determination before ownership transfers

A determination tells you your maximum FHSS release amount. It is not a payment request. The ATO requires the determination before property ownership transfers, generally at settlement. Do not assume a home loan approval or a contribution statement replaces this step.

Check the eligibility rules for age, previous ownership and intended occupation, including any applicable exceptions. If contributions or details change, follow the ATO process for updating the determination before requesting release. A broker can discuss lender evidence, but tax and super advice should come from an appropriately qualified adviser.

3. Coordinate the release request with the contract

For determinations made on or after 15 September 2024, a release request may be made before signing a contract or within 90 days after signing. Later requests can attract FHSS tax. Older determinations have different rules: do not use this timeline for them without checking with the ATO.

The contract window generally ends 12 months after requesting release, with a possible further 12-month extension. This is not permission to ignore the contract notification step. Follow the current ATO instructions to notify it that you have signed, and keep the request, contract and notification dates together.

You do not always have to receive FHSS funds before signing. But legal eligibility to release is different from having cash ready for an auction or contract deposit. Agree the funding plan with your conveyancer and lender before making an unconditional commitment.

4. Leave room for processing, tax and settlement

The ATO currently says payment takes 15–20 business days in most cases. That is an estimate, not a guaranteed deadline. Additional processing, tax withholding or debt offsets can affect the cash available. Do not treat 20 business days as 20 calendar days.

For illustration, a buyer who signs and then requests release must check the 90-day rule, ensure a determination was obtained before ownership transfers and still meet settlement funding requirements. Even a valid request does not guarantee money arrives by a particular settlement date. Ask what accessible funds will cover any timing gap.

Take this checklist to your advisers

FHSS is a savings mechanism, not a grant, an LMI waiver or mortgage approval. Compare it with other first-home buyer support, but check each scheme separately before assuming they can be used together.

• Tax adviser: eligible contribution history, caps and estimated after-tax release.
• ATO: determination date, release request, applicable contract window and notification obligations.
• Conveyancer: contract deposit, settlement date and ownership transfer timing.
• Broker/lender: evidence of released funds, remaining deposit and purchase costs.