First Home Saver Accounts (FHSA)
Frequently Asked Questions

What is an FHSA?

An FHSA is an account that will provide a simple, tax effective way for first homebuyers to save for their first home through a combination of Government contributions and low taxes.

When will I be able to apply for and where can I open an FHSA?

Account providers will be able to offer FHSAs from 1 October 2008. 

Banks, building societies and credit unions will only be able to offer deposit accounts. Public-offer superannuation providers, life insurers and friendly societies will also be able to offer investment‑linked accounts.

How do I apply to open an FHSA?

You will need to complete an application form which will be available from your FHSA provider. Applicants will need to satisfy the eligibility criteria to open an account, and must meet the withdrawal criteria to access their funds.

Unfortunately, at this stage we are unable to advise which institutions are likely to offer First Home Saver Accounts. You may, however, be able to contact your preferred financial institution to enquire whether they will be offering First Home Saver Accounts.

Refer to the Fact Sheet – Account Holders on this website for an overview of the eligibility and withdrawal criteria.

What does the ‘four-year requirement’ mean?

Contributions of at least $1,000 must be made to your FHSA in at least four financial years before funds can be withdrawn to purchase a first home in which to live.

What rate of interest will I earn on my FHSA?

Account providers will determine the rate of interest on accounts. Contact your FHSA provider to discuss the rate of interest. 

Does the FHSA replace the First Home Owner Grant?

The FHSA does not replace the First Home Owner Grant (FHOG).  If you open an FHSA, you may still be eligible for the FHOG.  You will need to apply for the FHSA separately to the FHOG.

For further information regarding the FHOG, use the following link to view the fhogOnline website at: http://www.firsthome.gov.au/

Do I need to be an Australian resident for tax purposes to open an FHSA?

You do not need to be an Australian resident for tax purposes to open an account, however, you must be one to receive Government contributions.  

For further information regarding residency, contact the Australian Taxation Office (ATO) on 13 28 61 or use the following link to view the ATO’s Residency website at: http://www.ato.gov.au/taxprofessionals/context/asp?doc=/content/64131.htm

I have owned and lived in a home with my previous partner.  When we separated, the home was sold. Am I eligible to open an FHSA?

As you have previously owned a home that you lived in, you do not meet the eligibility criteria and therefore are unable to open an FHSA.

My partner currently owns a home. Am I eligible to open an FHSA?

FHSAs are opened on an individual basis. Provided that you meet the eligibility criteria, you will be able to open an account even if your partner owns a home.

Can my partner and I pool our FSHA savings to buy our first home?

Account holders are able to use their FHSAs together to purchase a home provided at least one individual meets the four-year requirement.  All of the individuals who contribute their FHSA balance to the purchase of the home are required to live in the home to satisfy the occupancy criteria.

I have an FHSA, but my partner does not.  Am I allowed to purchase a home with my partner even though they do not have an account?

As an account holder, you are able to purchase a home using your FHSA balance with any other individual(s) regardless of whether the other individual(s) has an account.  However, you must still satisfy the withdrawal criteria to be able to access your FHSA savings.

I have decided to purchase a home but I have only held my FHSA for two years. Am I allowed to withdraw my account balance to put towards my new home?

Contributions of at least $1,000 must be made to your FHSA in at least four financial years before funds can be withdrawn to purchase a first home.

If you purchase a home before you have met the four-year requirement, you must notify your FHSA provider within 30 days, as you are no longer eligible to hold the account. The FHSA balance must be contributed to superannuation and your account must be closed. 

However, as mentioned above, if you are purchasing your home with another FHSA holder who has met the four-year requirement, you will be able to withdraw your balance, even though you have not met the requirement.

I own an investment property. Am I eligible to open an FHSA?

If you do not and have not previously lived in your investment property, then it is not considered your home.  Therefore, you will be eligible to open an account provided you meet the other eligibility criteria.

Can I move my FSHA between providers?

It is possible to move your FHSA between providers.  You may wish to check with your provider to enquire about any fees or charges applicable to the transfer.

What if I can’t afford to make a contribution?

If you cannot afford to make a contribution into your FHSA, nothing happens. You do not need to make contributions every year. 

What if I change my mind and no longer require my FHSA?

FHSA providers will allow a 14 day cooling-off period in which time you can change your mind.  After this time, you must meet the withdrawal criteria to be able to access your funds to purchase a first home.  However, you are able to contribute your FHSA balance to superannuation at any time should you no longer require the account.

Can I make contributions to my account from pre-tax income?

All contributions to your FHSA must be made from post-tax income. 

Will I be able to make contributions through salary sacrifice in the future?

Salary sacrifice arrangements will not be permitted.

Miscellaneous