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SMSF – First Home Super Saver Scheme and Downsizer Contributions Guide – My SMSF


SMSF downsizer contributions, First Home Saver Scheme SMSF, SMSF downsizer strategies, SMSF First Home Saver Scheme how to guide



SMSF First Home Super Saver Scheme and Downsizer Contributions Guide

The First Home Super Saver (FHSS) Scheme and Downsizer Contributions are two significant strategies for individuals and Self-Managed Super Funds (SMSFs) looking to maximize their superannuation savings and invest in property.

FHSS Scheme Overview

The FHSS Scheme allows individuals to make voluntary contributions to their superannuation and then withdraw them to help buy their first home.

Key FHSS Scheme Rules:

  1. Eligibility Criteria:

    • You must be 18 years or older.
    • Never owned a property in Australia.
    • Have not previously requested FHSS release authority.
  2. Contribution Limits:

    • Voluntary contributions are limited to $15,000 per financial year and $50,000 in total.
  3. Release Process:

    • Apply to the ATO for a release authority.
    • Withdraw up to $50,000 in eligible contributions plus earnings.

FHSS Withdrawals Growth (2018-2023):


Table: FHSS Scheme Contribution and Withdrawal Limits

YearAnnual Contribution Limit (AUD)Total Contribution Limit (AUD)Withdrawal Limit (AUD)

Downsizer Contributions Guide

The Downsizer Contribution allows individuals aged 55 or older to contribute proceeds from selling their home into their superannuation.

Key Downsizer Contribution Rules:

  1. Eligibility Criteria:

    • You or your partner must be 55 years or older.
    • Owned your home for at least 10 years.
    • The home is your main residence.
  2. Contribution Limits:

    • Up to $300,000 per individual or $600,000 per couple.
  3. Time Limits:

    • Contribute within 90 days of receiving the sale proceeds.

Downsizer Contributions Growth (2018-2023):


Table: Downsizer Contribution Eligibility and Limits

YearEligibility AgeContribution Limit (Individual, AUD)Contribution Limit (Couple, AUD)


Maximum Contribution

Annual Contribution Cap

Tax on Contributions

Eligibility Age

Property Ownership Requirement

Residency Requirement

First Home Super Saver Scheme (FHSSS)

$50,000 (total limit)


Concessional contributions taxed at 15%


Must not have previously owned property in Australia

Yes, must intend to live in the property for at least 6 months within the first 12 months of purchase

Downsizer Contributions

$300,000 per individual or $600,000 per couple




Must have owned the property for at least 10 years


Leveraging These Schemes for Your Financial Benefit
Understanding the thresholds, limits, and requirements of the FHSSS and Downsizer Contributions is key to leveraging these initiatives effectively. For prospective homeowners, the FHSSS provides a tax-efficient strategy to accelerate savings for a home deposit. For retirees or those nearing retirement, the Downsizer Contributions offer a unique opportunity to enhance superannuation savings, potentially improving your lifestyle in retirement.

Charting a Strategic Course to Your Financial Goals
Armed with detailed knowledge of these superannuation strategies, Australians can chart a more informed and strategic course towards homeownership and retirement. The FHSSS and Downsizer Contributions not only reflect the government’s support in achieving these milestones but also highlight the importance of proactive financial planning. By integrating these schemes into your financial journey, you can approach both homeownership and retirement with greater confidence and security, knowing you’ve maximized the benefits available to you.

External Resources

  • For personalized advice and assistance with your SMSF investments, feel free to contact us at My SMSF Contact Us Page

Always seek tax and legal advice before implementing these complex strategies.