Spouse contributions

Making after-tax contributions to your spouse's super account.

If your spouse is a full-time parent, working part-time, or not working at all right now, it’s more than likely they’re getting little to no super from an employer. This means that their super, and future retirement plans, can fall behind.

Making a spouse contribution to your partner’s super account can be a great way to improve their future retirement and, if they earn less than $40,000 each year, you may qualify for a tax offset of up to $540.

How much can you contribute?

You can contribute any after-tax amount you wish to your spouse's super account, but you can only claim the tax offset for the first $3,000 contributed each year.

These will count towards the receiving spouse’s after-tax (non-concessional) contribution cap. Tax penalties apply if you exceed these caps. Refer to the Super contributions fact sheet for more information.

How does it work?

Spouse contributions are personal (after-tax) payments which you make into your spouse’s super account.

If your spouse earns under $40,000 each year, you may be able to claim an 18% tax offset for the contribution you make to their super account. The maximum available offset is $540 each year, and you’d need to contribute $3,000 to qualify for this amount ($3,000 x 18% = $540).

The maximum contribution amount considered for the tax offset ($3,000) reduces by $1 for every dollar of income your spouse earns above $37,000 each year, phasing out at $40,000.

If your spouse earns under $37,000 each year and you make a spouse contribution of $3,000 or more during the 2020-21 financial year, you’ll receive a tax offset of $540. If the contribution was $2,000, the tax offset would be $360 ($2,000 x 18%). If the contribution was $1,000, the tax offset would be $180 ($1,000 x 18%).

Who counts as a spouse?

For the tax offset, your spouse includes another person who:

• you were in a relationship with that was registered under a prescribed state or territory law
• although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.

How you get the tax offset

To claim the tax offset, you just need to make an after-tax contribution to your spouse's super account and claim the tax offset in your tax return.

Example: Lee and Taylor's story

Lee and Taylor are a de facto couple.

Lee works part-time and earns $37,500 each 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.

Ready to make a spouse contribution?

If your spouse is a Tasplan member, the quickest way to pay is online through BPAY®. Your spouse can get their biller code and reference number by logging in to Tasplan Online > Contributions. Just make sure you use their spouse biller code!

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