When to Apply for First Home Super Saver Before Signing

We get asked this almost every week by first home buyers in Melbourne who have spent years salary sacrificing into super and are now looking at a Saturday auction in Brunswick, Reservoir or Bentleigh. The worry is simple: ‘Do I need the FHSS money before I sign, or can I sort it out after?’

The short answer: Apply for your First Home Super Saver Scheme determination as soon as you are seriously house hunting, and before signing if you can. Current ATO guidance says you must request your FHSS determination before the property contract is completed, generally settlement, but waiting until after signing can leave you short on time because a release usually takes about 15 to 20 days if there are no issues. If you have signed a contract before requesting release, you generally have 90 days from the contract date to lodge your FHSS release request and notify the ATO.

What is the First Home Super Saver Scheme?

The First Home Super Saver Scheme lets eligible first home buyers withdraw certain voluntary super contributions, plus associated earnings, to help buy or build their first home. It is a federal tax and super scheme, not a Victorian grant, and it can sit beside the First Home Buyer Assistance Scheme, Victorian duty savings and lender programmes.

The headline caps are $15,000 of eligible voluntary contributions per financial year and $50,000 in total across all years, plus calculated earnings. Super guarantee contributions from your employer and spouse contributions cannot be released under the scheme.

For Melbourne buyers, FHSS is often part of a bigger deposit plan. You might be using FHSS for part of the funds, cash savings for the balance, a family gift for the bank’s comfort, and a Victorian first home buyer duty exemption or concession to reduce your upfront costs.

When should you apply for an FHSS determination?

Apply for the FHSS determination before you get emotionally locked into a property, ideally before you bid at auction or sign a private sale contract. The determination is the ATO’s calculation of the maximum amount you can withdraw, and you need it before you can make a release request.

The most conservative order is:

Check your eligible voluntary contributions using your super fund records, not just payslips.
Request your FHSS determination through myGov and your linked ATO account.
Check the determination amount carefully.
Decide whether to request release now or wait until you are closer to signing.
Line up your settlement date, loan approval and deposit plan before committing to a contract.

The current rules give more flexibility than the old ‘apply before signing or you may miss out’ message. That said, in practice, we still prefer clients to have the determination before signing. It removes one unknown from a very busy week, especially if you are buying at auction where the contract is usually unconditional once the hammer falls.

We’ve seen this come up most often when a buyer wins an auction, celebrates over the weekend, then opens myGov on Monday and realises the FHSS process has several steps. No one wants their settlement plan depending on a rushed online form, a super fund processing queue and a lender asking for cleared funds.

Should you request release before signing or after signing?

The safest path is to request release before signing if you know you will buy within the next 12 months. Once you request release, you generally have 12 months to sign a contract to buy or build a home, and the ATO may give an automatic 12-month extension, meaning up to 24 months in total.

This path works well if you are actively inspecting each weekend and have loan pre-approval. The FHSS money can land in your nominated bank account before you bid, so your lender and broker can treat it as part of your visible deposit.

The other path is signing first and requesting release straight away. If you have not yet requested release, current guidance says you generally have 90 days from the contract date to lodge the release request. You also need to notify the ATO within 90 days of signing the contract.

That sounds generous, but don’t treat 90 days as a reason to wait. A 30-day Victorian settlement can be tight once you factor in ATO processing, super fund release, bank verification and settlement booking. If your lender wants to see the FHSS money sitting in your account before settlement, timing matters more than the headline deadline.

How does FHSS timing fit with Melbourne contracts?

In Melbourne, the real question is not ‘what is the last possible day?’ It is ‘will the money be ready before settlement and before my lender needs it?’

A 60 or 90-day settlement usually gives buyers more room to move. A 30-day settlement, common with some motivated vendors, off-the-plan resales and competitive inner-suburb campaigns, can be harder if you have not already requested release.

Before signing, ask:

Is the settlement period 30, 60 or 90 days?
Does my lender need FHSS funds in my account before formal approval, unconditional approval or settlement?
Do I have enough cash to pay the deposit due under the contract if FHSS is still processing?
Should I ask for a smaller initial deposit with the balance due later?
Do I need tailored special conditions in the contract of sale to manage FHSS timing?

Auction buyers need to be extra careful. In Victoria, auction contracts are usually unconditional, and you generally cannot rely on cooling off after buying at auction. If FHSS funds are central to your deposit, talk to your conveyancer and broker before auction day, not after the agent hands you the pen.

What tax and deposit gaps should you allow for?

The FHSS amount you see in your determination is not always the exact cash that lands in your account. The ATO withholds tax from the released assessable amount, usually based on your expected marginal tax rate including Medicare levy, less a 30% offset.

That means your deposit spreadsheet should include a buffer. If you are planning to use every dollar of FHSS for a 10% deposit on a $700,000 unit in Coburg, a withholding amount, ATO debt offset or processing delay could leave a gap at the worst time.

Also remember that the ATO may use part of your release to pay certain debts you owe to the ATO or another agency. This is why we ask buyers to check their myGov account, tax debts and HELP or study loan position before relying on the full FHSS figure for settlement.

Who is eligible to use FHSS?

You usually need to be 18 or older to request a determination or release, have made eligible voluntary super contributions, have never owned property in Australia, and intend to live in the home you buy. Prior ownership can include an investment property, vacant land, commercial property, some lease interests or a company title interest.

There is a financial hardship pathway for some people who have owned property before, but it is not the default rule. Do not assume you qualify just because you sold a property years ago or never lived in it.

Your name also needs to be on the title of the property you purchase. If you are buying with a partner, friend or sibling, each person’s FHSS eligibility is assessed separately. One buyer being ineligible does not automatically stop another eligible buyer using their own FHSS release.

You should also plan to occupy the property. Buying a townhouse in Brunswick and renting it out while you stay with family in Reservoir may not fit the scheme’s home ownership purpose. If your move-in plans are unusual, get advice before signing.

What should you do before signing a contract?

Before you sign, build a simple FHSS timeline beside your contract timeline. It does not need to be fancy, but it should show the determination date, release request date, expected funds date, deposit due date, finance approval date and settlement date.

A practical pre-signing checklist is:

Request your FHSS determination early.
Confirm your release amount and likely tax withholding.
Ask your broker how the lender wants to see FHSS funds evidenced.
Check whether your contract deposit is due immediately, in instalments, or by another date.
Send the contract and Section 32 to your conveyancer before you sign.
Confirm whether you are also using the Home Guarantee Scheme, Victorian duty savings or family support.

For private sale contracts, you may have room to negotiate the settlement period or deposit timing. For auctions, most of that work needs to happen before auction day.

What if the purchase falls over after FHSS is released?

If you receive your FHSS money and the contract does not proceed, you generally cannot just keep the money as ordinary savings. You may need to sign another eligible contract within the allowed period, recontribute the required amount to super, or pay FHSS tax.

This can happen where finance is refused, a building inspection clause allows the buyer to end the contract, or the vendor cannot complete settlement. Your conveyancer can help with the contract paperwork showing what happened, but the FHSS recontribution and tax steps should be checked with the ATO or your tax adviser.

Frequently asked questions

Can I use the First Home Super Saver Scheme as my whole deposit?

Usually, no. The FHSS cap is $50,000 of eligible voluntary contributions per person, plus associated earnings, so it may only cover part of the deposit on a Melbourne property. Many buyers combine FHSS with cash savings, family support, the Home Guarantee Scheme or Victorian duty concessions.

Do I need to apply for the First Home Super Saver Scheme determination before signing a contract?

You should apply before signing if possible, because it gives you a clearer deposit figure before you commit. Current ATO guidance says the FHSS determination must be requested before the property contract is completed, usually settlement, but signing first can still create timing and lender risk. The safest move is to have the determination ready before auction day or offer signing.

How long does the First Home Super Saver Scheme release take?

The ATO’s public guidance says it usually takes about 15 to 20 days to receive your FHSS amount if there are no issues with your request. In a conveyancing timeline, buyers should allow extra room for weekends, public holidays, super fund processing, bank checks and any ATO debt offset. Do not plan a 30-day settlement on the hope that everything runs perfectly.

What is the 90-day rule for First Home Super Saver release after signing?

If you sign a contract before requesting release, current guidance generally gives you 90 days from the contract date to lodge the FHSS release request. You also need to notify the ATO within 90 days of signing a contract to buy or build your home. Older determinations and past applications can raise extra questions, so check the exact dates before relying on the rule.

Can I cancel the contract if my First Home Super Saver release does not come through in time?

Not automatically. A standard Victorian contract does not usually make settlement conditional on FHSS release, and auction contracts are commonly unconditional. If FHSS timing is a risk, negotiate protection before signing or choose a settlement period that gives the release time to arrive.

Do both partners need to apply for the First Home Super Saver Scheme separately?

Yes. FHSS works per person, so each eligible buyer needs their own determination and release request. If both partners are eligible, each may be able to access up to the individual cap, which can make a real difference to the combined deposit.

What if I have already owned property and want to use the First Home Super Saver Scheme?

Prior property ownership in Australia usually means you are not eligible for FHSS, even if the property was an investment, vacant land, commercial property, some lease interests or company title. A financial hardship exception exists for some people, but it is not automatic. Check eligibility before making a release plan or signing a contract.

About the Pearson Chambers Conveyancing team

Pearson Chambers Conveyancing is a Melbourne-focused conveyancing team that works with first home buyers across the CBD, inner suburbs and outer growth corridors. We handle contract reviews and settlements for buyers using FHSS, Victorian duty concessions, lender schemes and family-backed deposits. FHSS timing is exactly the kind of practical contract issue we help clients sort out before they sign.

Sources we consulted

Get the FHSS timing checked before you sign

If you are using the First Home Super Saver Scheme for a Melbourne purchase, send us the contract before you sign. The Pearson Chambers Conveyancing team can review the settlement dates, deposit wording, Section 32 and any FHSS timing risks, then talk you through your options in plain English.

We offer a complimentary Section 32 contract review for Melbourne buyers.

Email: contact@pearsonchambers.com.au

General information only, current as at the date of publication. Victorian conveyancing rules and legislation change frequently. Please contact the Pearson Chambers Conveyancing team for advice on your specific contract.