How does FHSS work with a partner?
Buying your first home with your partner is a big moment. It’s the transition from splitting bills to building equity, from shared spreadsheets to shared walls. But in today’s housing market, that milestone can feel just out of reach. Rising property prices, higher living costs, and slow-growing savings can make the home deposit goal feel like it’s always one step ahead.
That’s why more couples are turning to the First Home Super Saver (FHSS) Scheme. It’s a government initiative that helps you save for a deposit using your superannuation. When both partners use it strategically, it can give your joint savings a meaningful boost.
At Pearler, we believe in using smart, long-term strategies to reach financial goals. For couples buying their first home, understanding how to use the FHSS well could make a real difference. Here’s how it works.
What Is the First Home Super Saver (FHSS) Scheme?
The FHSS lets individuals make extra voluntary super contributions with the goal of putting that money towards a home deposit. Because super contributions are taxed at concessional rates, you may grow your savings faster than in a regular account.
When you’re ready to buy, you can apply to withdraw those voluntary contributions, along with a calculated amount of earnings, to use as part of your deposit.
While the FHSS applies to individuals, couples can each use it at the same time. That’s where the opportunity comes in.
Can couples use the FHSS?
Yes, and many do. Each partner contributes separately and applies for a release under their own name. You won’t share an FHSS account or combine your contribution caps, but when both partners use the scheme, the savings potential can double.
Under the 2025 rules:
- You can contribute up to $15,000 per person, per financial year
- You can withdraw a maximum of $50,000 per person, across all years
Together, this means a couple could potentially access $100,000 before tax to use for their deposit. These limits are per person, not per household.
Even if you're buying one property together, the scheme treats you as two individuals. Each of you must apply separately to the ATO and will receive your own calculated amount.
A few common myths:
|
Myth |
Reality |
|
Couples can pool their caps |
You can’t. Each cap applies to individuals |
|
You can apply together |
No. Each person submits their own application |
|
Employer-paid super counts |
It doesn’t. Only voluntary contributions qualify |
|
Withdrawals are tax-free |
They are taxed at your marginal rate with a 30% offset |
|
Both partners must qualify |
One partner can still benefit independently |
Eligibility for couples
Your relationship status doesn’t affect eligibility. What matters is your individual circumstances. Each person must:
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Be 18 or older when requesting a release
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Never have owned property in Australia (including investment or inherited property), unless you qualify for hardship exemptions
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Not have previously withdrawn funds under the FHSS
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Intend to live in the property for at least six of the first 12 months after purchase
Example:
Clark, 28, works in IT. Sohini, 27, is a nurse. They want to buy an apartment in Melbourne.
Clark has never owned property and hasn’t used the FHSS before, so he’s eligible. Sohini bought a small investment unit a few years ago, which she later sold. That earlier ownership means she’s ineligible.
Still, Clark can go ahead on his own. His contributions and withdrawal are assessed independently. When the time comes, his FHSS funds will make up part of their joint deposit.
How Much Can You Contribute and Withdraw?
Each person has:
-
An annual cap of $15,000 in voluntary contributions
- A lifetime withdrawal cap of $50,000 (plus calculated earnings)
Only voluntary contributions count. These include salary sacrifice or after-tax contributions. Employer-paid super (the standard 11 percent) is excluded.
Example:
Alex contributes $15,000 a year for three years, reaching $45,000. Jordan contributes $10,000 a year for five years, reaching $50,000. When they’re ready to buy, they can each apply for an FHSS release. Their combined savings give them a strong head start on their deposit.
What about tax?
Withdrawals are taxed at your normal marginal rate, but with a 30 percent offset. In most cases, this results in a lower tax bill than if the money had been saved outside super.
Using FHSS as a couple: Step-by-step
Using the FHSS doesn’t have to be complicated. Here’s how to approach it.
Step 1: Check eligibility
Each partner should confirm their individual eligibility. If only one of you qualifies, that’s still useful.
Step 2: Decide how much to contribute
Talk through your savings goals. Some couples aim to match each other, while others contribute in proportion to their income. Salary sacrifice is usually more tax-effective, but after-tax contributions also count.
Step 3: Make contributions
Log into your super fund and start your voluntary contributions. Each fund has its own process, so check the details and label your contributions correctly. Importantly, you need to make these contributions before signing a contract for your home.
Step 4: Apply for a determination
When you’re nearing your savings goal, request a determination from the ATO. This tells you how much you’re allowed to withdraw. Each partner must apply separately.
Step 5: Request a release
If you’re happy with the amount, lodge your release application. It typically takes 15 to 25 business days for the funds to be transferred.
Step 6: Buy your home
You have 12 months from the date of your release to sign a contract. If needed, you can apply for an extension. Some couples sync their release dates so both sets of funds are ready for settlement, while others stagger the process.
Smart strategies for couples
Using the FHSS well as a couple is mostly about coordination. Here are a few ideas that can help.
Use your strengths
If one partner has more stable income or can afford to contribute more, that’s fine. The other can still contribute regularly. This helps balance your efforts and avoid pressure.
Time it right
Some couples release their FHSS funds at the same time to align with settlement. Others prefer to stagger the process, especially if they’re buying off the plan or facing job changes.
Stay organised
Track your contributions together using a spreadsheet, budgeting app, or Pearler Automate. When both partners can see progress, it’s easier to stay on track.
Keep expectations realistic
The FHSS isn’t a shortcut to a deposit, but it’s a structured way to grow savings with tax advantages. Used consistently, it can help you reach your goal sooner.
Key takeaways
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The First Home Super Saver scheme helps individuals save a home deposit using their super
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Couples can both participate, but always as individuals with separate caps and applications
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The current limits are $15,000 per year and $50,000 in total per person, not including earnings
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Voluntary contributions count; employer-paid super does not
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Withdrawals are taxed, but a 30 percent offset applies
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One partner can still benefit even if the other is ineligible
The FHSS is not a silver bullet, but it can meaningfully reduce the time and tax burden involved in saving for your first home. It works best when both partners understand the rules, plan contributions carefully, and stay committed over time.
At Pearler, we’re focused on helping Australians make confident financial decisions with a long-term mindset. Whether you’re saving for your first home or investing for the future, the same principles apply: plan together, stay consistent, and look ahead.
Resources and further reading
To learn more, explore these official and educational links:
