Spouse Contribution

What is a Spouse Contribution?

If your spouse is a low or no-income earner, you can contribute money to their superannuation account. Making a contribution to their super can be an effective way to grow their retirement savings, while reducing your tax.

A spouse includes someone you are legally married to or in a de facto relationship with (including same sex partners).

What are the benefits?

• If your partner is earning a low income, or has taken time off work, it can be difficult for them to build up their retirement savings. By making an after-tax contribution, you're helping them grow their superannuation balance.
• If you make after-tax contributions to your spouse's super and they earn less than $40,000 a year, you may be able to claim a tax offset of up to $540.

How the spouse super tax offset works?

The first $3,000 you pay into your spouse’s superannuation account as an after-tax contribution, you may be able to claim a tax offset of up to 18% (so, a maximum of $540). You don't receive the spouse contribution tax offset for payments above $3,000.

The amount you can claim depends on how much they earn annually:

What should I be thinking about?

• If you want to make contributions for your spouse, there are a few requirements you must satisfy:
• Your spouse must be under age 67 (or meet the work test or work test exemption if they are aged 67 to 75).
• Your contribution must be from after-tax dollars, and not from an employer or a trust.
• You and your spouse must not be living separately on a permanent basis.
• Your spouse must provide their TFN to their super fund.
• You and your spouse must be Australian residents.
• You aren't eligible to claim this tax offset if:
• Your spouse has exceeded their non-concessional contributions cap for the financial year.
• Your spouse's superannuation balance is $1.7 million or more on 30 June of the previous financial year in which the contribution was made.

This information is of a general nature. It does not consider your personal objectives, needs or situation. It does not represent legal, tax or personal advice and should not be taken as such. If it has been provided to you with a Statement of Advice (SoA), you should rely on the personal advice in the SoA.

Care has been taken to provide up to date and accurate information relating to the subject area however BR Advice Pty Ltd (ABN 30 612 056 523, AFSL 488655), Blue Rock Private Wealth Pty Ltd (ABN 95 166 927 055, AFSL 452733), Blue Rock Private Wealth (Melb) Pty Ltd (ABN 48 652 202 698, ASIC AFS No. 1298365) and their representatives make no representation as to its accuracy or completeness.

Published: September 2022.

© Copyright 2022.