Spouse contributions help increase your spouse's super if they’re working part-time or taking care of things at home.
If you contribute to your spouse's super and your spouse earns less than $40,000 in the 2018-19 financial year, you may be eligible for an 18% tax offset on contributions of up to $3,000 each year up to a maximum of $540.
Spouse contributions can be an effective way to increase your spouse's super. Along with other strategies, such as government co-contributions and salary sacrificing, it can form part of a complete retirement strategy.
Your spouse includes another person (of any sex) who:
Spouse contributions may provide you with an 18% tax offset when you contribute to your spouse's super fund, under certain conditions. This encourages couples to make sure both their super savings are growing. The tax offset applies to the first $3,000 of your contributions in a year, with a maximum tax offset of $540.
To say it another way, the tax offset is 18% of one of these things (whichever is less):
(Yeah, we had to read through that a couple of times, too. If your brain’s buzzing like ours did, just give us a call on 1800 005 166 and we’ll run you through it.)
Lee and Taylor are a de facto couple.
Lee works part-time and earns $37,500 a year.
Taylor is the main income earner. Taylor contributes $3,000 to Lee's fund. To calculate the tax offset, Taylor needs to:
1. subtract $37,000 from Lee's income: $500
2. deduct this amount from the $3,000 contribution: $2,500
3. use the lesser amount of step two or the contribution: $2,500. Multiply this by 18%: $450.
The tax offset Taylor can claim is $450.
You’re eligible if:
Spouse contributions count as non-concessional contributions, which means they come under your spouse's non-concessional contributions cap.
Grab more information on contribution caps.
Spouse contributions aren’t subject to the contributions tax.
To claim the tax offset, you just need to make an after-tax contribution to your spouse's super and claim the tax offset in your tax return.
Heading for a retirement you can live with and live on? Find out with our Retirement $ projector. You can also find our more about spouse contributions in our Save for your spouse and reduce your tax fact sheet.