FHOG vs FHSSS 2026 — AU First Home Buyer Comparison

TL;DR — 30 SECOND ANSWER

You should use BOTH where eligible. FHOG is a one-off state cash grant ($10K-$50K depending on state) that applies only at the point of buying a new build — you get it once. FHSSS is a tax-advantaged savings mechanism — you accumulate up to $50K in your super fund (at the 15% concessional tax rate instead of your marginal rate) and withdraw it for your deposit. These are not "either/or" — they operate on different mechanics and stack cleanly. The only constraint is you need to be planning to buy a new build to claim the FHOG.

Side-by-side comparison

	FHOG	FHSSS
What it is	One-off state cash grant at purchase	Tax-advantaged super-based deposit savings
When you get it	At settlement (one-off)	When you withdraw for your home deposit (one-off withdrawal)
Maximum amount	$10,000 (NSW/VIC/WA) to $50,000 (NT)	$50,000 lifetime contribution cap + earnings
Applies to	New builds + substantially renovated only (varies by state)	Any property type
Income cap	Generally none on the grant itself (some states have property price caps)	None on the FHSSS itself; FHSSS contributions count against your super concessional contributions cap
Property price cap	Yes — varies by state ($600K-$750K typical for new builds)	No
Tax benefit	No direct tax benefit — its a grant	Significant — contributions taxed at 15% instead of your marginal rate (potential saving of ~$10K+ for higher-income earners)
Speed-to-deposit	Instant at settlement	Slow — you need to make voluntary super contributions first (12+ months minimum)
Funded by	State government	Your own pre-tax salary (with tax savings via super treatment)
Stacks with the 5% Deposit Scheme	Yes	Yes
Stacks with Help to Buy	Generally yes (depending on state)	Yes

Which is right for you?

Pick FHOG if…

You are buying a new build (off-the-plan, newly constructed, or substantially renovated)
You are in a state with a generous FHOG (QLD $30K boosted, TAS $30K boosted, NT $50K)
You want immediate cash at settlement, not a 12-24 month savings plan

Pick FHSSS if…

You are buying an established home (FHOG generally not available)
You have 12+ months to accumulate the deposit before buying
You earn above $90K (the higher your marginal tax rate, the better the FHSSS tax-arbitrage gets)
You want to MAXIMISE deposit, not just access cash

Can you combine them?

These stack cleanly — they are not mutually exclusive. A first home buyer purchasing a new build can claim the state FHOG at settlement AND have used the FHSSS to save the deposit beforehand. The FHOG operates at point of purchase; the FHSSS operates during the savings phase. Many AU first home buyers use BOTH alongside the 5% Deposit Scheme (which is also stackable with both) for maximum effect.

FAQs

Can I use FHSSS savings even if I am buying an established home (no FHOG available)?#

Yes. The FHSSS has no requirement that the property be a new build. You can withdraw FHSSS-saved funds for the deposit on any owner-occupied residential property, including established homes. The new-build restriction applies only to the state FHOG, not the FHSSS.

How much tax do I actually save using FHSSS?#

It depends on your marginal tax rate. If you earn $90,000 (32.5% + 2% Medicare = 34.5% marginal rate) and save $15,000 via FHSSS, you save approximately $2,925 in tax that year (the difference between paying 34.5% on the $15,000 vs the 15% super rate). If you earn $150,000 (39% marginal rate), the same $15,000 contribution saves $3,600 in tax. Over 3 years of $15,000 contributions, the saving compounds to ~$9,000-$11,000.

Does my employer-paid Super Guarantee count toward the FHSSS cap?#

No. Only voluntary contributions (salary sacrifice or post-tax personal contributions for which you claim a deduction) count toward the FHSSS scheme. Your employers compulsory Super Guarantee contributions are separate and remain in your super fund for retirement.

What happens to FHSSS-released funds if I dont buy a home within 12 months?#

The released amount must be used to enter a contract to buy or build a home within 12 months of withdrawal (extendable by another 12 months on application to the ATO). If you do not buy within that window, the funds either return to super or you pay FHSSS tax (a flat 20% on the released amount) to keep them. There is no penalty if you genuinely cant find a property — the recontribution path is straightforward.