Spouse Super Tax Offset

There is a tax offset available for taxpayers who make contributions on behalf of a spouse who is earning a low income, or not working.

For contributions of up to $3,000 made for a spouse on a lower income, there is a tax offset of 18% available, providing the spouse’s income is less than $37,000. (The tax offset shades out above $37,000 and cuts out entirely once the receiving spouse’s income reaches $40,000.) The maximum tax offset is $540.

The benefits of making spouse contributions are:

  • Adding to your spouse’s retirement assets within a concessionally-taxed environment
  • There is no tax paid on entry to super for this type of contribution (a non-concessional contribution)
  • You will be eligible for a tax offset of 18% on contributions made up to a maximum of $3,000

Example: 

Jane makes a $2,000 contribution for Tarzan, her spouse whose taxable income for the financial year is $25,000. Jane will be entitled to a tax offset of $360 when she completes her tax return.

Our tip – if you have savings to spare and you have a spouse whose taxable income will be less than $37,000 in the current financial year, you might want to make a contribution before 30 June.

Note: Spouse contributions do not count as part of the $25,000 concessional contribution limit.

Things to be aware of:

  • If your spouse ends up earning more than $40,000 during the financial year you won’t be entitled to an offset
  • You won’t see the tax offset until you have completed your personal tax return for the current financial year
  • Funds you contribute will be preserved in super until your spouse meets a condition of release
  • By making a spouse contribution, the funds will be under the control of your partner and will not be accessible to you
  • Spouse contributions count towards the receiving spouse’s annual $100,000 non-concessional contribution cap
  • The tax offset only applies to the first $3,000 in spouse contributions made during a financial year. Contributions in excess of this amount will attract no additional tax benefit

Let us know if you have any questions or require assistance with any last-minute super contributions.

Disclaimer: The information in this email is general advice only and has not taken into account your personal circumstances. Please seek personalised advice prior to implementing any additional contributions.

We specialise in customising strategic solutions across a range of financial services.

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