How are the deemed earnings on the First Home Super Saver (FHSS) scheme calculated?
When you save through the First Home Super Saver (FHSS) scheme, your contributions earn associated earnings—a notional amount calculated by the ATO rather than based on actual investment performance. These earnings are determined using the Shortfall Interest Charge (SIC) rate, which helps reduce the impact of market fluctuations on your savings.
The SIC is calculated daily on a compounding basis, using the 90-day Bank Accepted Bill rate (as published by the Reserve Bank of Australia), plus a 3% margin. For the April–June quarter of the 2024–25 financial year, the annual SIC rate is 7.17%. But, as rates can change, please refer to the ATO website for the most up to date information.
Here’s an example: If the SIC rate remains at 7.17%, and you keep $10,000 in the FHSS scheme for one year, your associated earnings would be $717, allowing you to withdraw a total of $10,717.
When you make contributions under the First Home Super Saver (FHSS) scheme, the money goes into your super and is invested alongside your other superannuation savings. However, when it’s time to withdraw, you can only access your contributions plus the ATO’s calculated associated earnings—not your actual investment returns.
These associated earnings are based on the Shortfall Interest Charge (SIC) rate, not your fund’s performance.
For example:
If your super earns 10%, and you contribute $10,000, your balance may grow to $11,000—but you can still only withdraw $10,717 (based on the SIC rate of 7.17%).
If your super earns 5%, and your balance only grows to $10,500, you can still withdraw $10,717—as long as your super has enough overall funds to cover the amount.
It’s worth noting that it’s also possible to take a lesser amount of money than what you’ve contributed if you wish. For more information, check out the ATO website for the most up to date information on the scheme.
In short: your FHSS withdrawal is fixed by the ATO’s formula, not your actual returns, so your investment performance isn’t the only diver of how much you can access through the scheme.
At its core, the First Home Super Saver (FHSS) scheme is designed to help first home buyers save for a deposit in a more tax-effective way. While the money is always your own, the scheme provides a structure that encourages disciplined saving and protects the value of what you contribute.
The returns shown are indicative only. Deemed earnings are calculated daily and aggregated quarterly, so the figures are estimates. As the scheme is subject to change, please refer to the ATO website for the most up-to-date information. Pearler updates FHSS metrics as soon as new data becomes available. The final value will be calculated by the ATO when processing your determination. Refer to the ATO for more information on the withdrawal process.
As always, before making financial decisions, please do your own research and read the Pearler Super product disclosure statement along with the TMD and other important documents listed here.
If you have more questions or would like to share any feedback, please reach out to us via our live chat or email us at help@pearler.com.
Remember, that this is general in nature and doesn't constitute personal advice. Reach out to a financial professional when considering making financial decisions. As details may change, we recommend checking the information directly from the source, including the ATO website. All figures and data in this article were accurate at the time it was published. That said, financial markets, economic conditions and government policies can change quickly, so it's a good idea to double-check the latest info before making any decisions.