For many Australians, saving for a first home can feel out of reach. With rising property prices and living costs, building a deposit often takes years. That is why some people are now turning to their superannuation for help.

The idea of using super to buy a home is growing in popularity. But it is not as simple as withdrawing money and heading to an auction. There are rules, limitations and processes you need to follow carefully.

Can You Actually Use Super?

Yes, but only under specific circumstances. The Australian Government introduced the First Home Super Saver Scheme, which allows eligible individuals to use a portion of their voluntary super contributions to help purchase their first home.

The goal is to give first home buyers a tax effective way to save. For full details about how this works in New South Wales, click here.

This means you can withdraw money that you have added to your super account, separate from your employer's mandatory payments. These contributions, along with the associated earnings, can then be used toward your deposit.

Key Limits and Considerations

There are caps on how much you can contribute and withdraw. Currently, you can apply to access up to fifty thousand dollars of voluntary contributions. This can make a meaningful difference to your deposit, but it must be planned carefully.

You also need to apply through the Australian Taxation Office before withdrawing. Once approved, the money must be used to buy or build a home within twelve months. If not, it may need to be returned to your super account.

Is It the Right Move?

Using super to fund your first home can be a smart option for some, but not for everyone. If you are planning to buy in the near future and have already been making extra contributions, it may give you the boost you need.

However, remember that taking money out of super early can affect your long term retirement savings. Speaking to a financial adviser is strongly recommended before making a decision.