The FHSSS allows first home buyers to save money inside their super fund, potentially helping them save faster due to the concessional tax treatment of superannuation.

In layman's terms, first home buyers can stash their deposit savings in their super fund to save on tax.

The voluntary contribution cap was proposed to be changed from $30,000 to $50,000 from July 2022 in the 2021-22 Federal Budget. 

This would mean that based on a maximum contribution of $50,000, one's housing deposit could be boosted by thousands of dollars in tax savings compared to saving via savings accounts, which are used with after-tax income and subject to Capital Gains Tax.

Arjun Paliwal, Founder and Head of Research at buyer's agency InvestorKit, said that while schemes and financial support are great in the moment, it will always be a 'band-aid solution' to supporting first home buyers.

"This is another great step in improving housing accessibility for first home buyers. Its impact will add to the demand equation for housing markets across Australia as more liquidity is there to boost deposits for first home buyers," Mr Paliwal said.

"[But] leaders across our nation need to balance short and longer-term priorities."

Mr Paliwal said a long-term priority that's less talked about is creating greater population spread across Australia.

"Constant discussion, innovation, vision and commitment to this plan will unlock a greater Australia and one that can sustainably support the entry of first home buyers and reduce rents through greater and more comforting investor participation across the nation," Mr Paliwal said.

See Also: Do the First Home Super Saver changes make it worth using now?


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Looking to take control of your retirement? This table below features SMSF loans with some of the most competitive interest rates on the market.

Update resultsUpdate
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkCompare
6.99% p.a.
7.00% p.a.
$2,659
Principal & Interest
Variable
$0
$230
70%
Featured
  • Available for Purchase and Refinance. No application fee and no settlement fee
  • No monthly, annual or ongoing fees
  • Access your SMSF loan via our easy-to-use online app Smart Money
6.99% p.a.
7.10% p.a.
$2,659
Principal & Interest
Variable
$0
$1,490
70%
7.24% p.a.
7.25% p.a.
$2,726
Principal & Interest
Variable
$0
$0
70%
7.25% p.a.
7.65% p.a.
$2,729
Principal & Interest
Variable
$30
$1,190
80%
7.39% p.a.
7.47% p.a.
$2,767
Principal & Interest
Variable
$0
$995
80%
7.55% p.a.
7.94% p.a.
$2,811
Principal & Interest
Variable
$395
$1,920
80%
7.49% p.a.
7.50% p.a.
$2,794
Principal & Interest
Variable
$0
$230
80%
Featured
  • Available for Purchase and Refinance
  • No application fee and no settlement fee
  • No monthly, annual or ongoing fees
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Image by Luis Villasmil on Unsplash





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