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Contributing To Your Spouse’s Super Can Earn 18%


The spouse superannuation contribution option assists families when one spouse is on a low-income or not working in a paid position.

Broadly speaking, the concept is that the spouse earning the higher income is entitled to a win-win situation where they can claim a tax rebate when they contribute to their partner’s superannuation fund.

As with all superannuation concessions there are restrictions and this one is fairly limited.

But as a way to increase the family super pool as well as make saving by paying less tax, it is still worth considering.

Further details:

  1. The maximum eligible contribution is $3,000 per year. You can contribute a higher amount, again subject to other limits, but the benefit of the rebate ceases at $3,000.

  2. The maximum contribution attracts a tax rebate of 18% or $540. (*See below)

  3. If your spouse earns below $37,000 then the maximum figures apply.

  4. To receive a contribution, the spouse must be either younger than their “preservation age”, or still working and between 67 and 74 years old (according to the April 2019 budget release).

  5. Your spouse’s super balance must be below $1.6 million (for 2018/19) on 30 June of the previous financial year from that in which the contribution is being made.

  6. If your spouse has exceeded their non-concessional contributions cap for the financial year, you will not be eligible to contribute.

  7. At the time the contributions are being made, both you and your spouse must officially be Australian residents.

  8. Under Australian superannuation law, “spouse” is defined as your legally married partner or de facto partner.

* Rebates are generally better than tax deductions as you get the full amount of the rebate back in your tax, whereas with a tax deduction the benefit is reduced because the amount is deducted from your income and tax is then applied.