A spouse contribution allows you to make an after tax contribution to your spouse’s superannuation account in order to receive a tax offset of up to $540.
Advantages of making a spouse contribution:
- If your spouse earns $40,000 or less and you make a spouse contribution to their super fund, you may be eligible to receive a tax offset of up to 18% of the contribution. The offset is limited to $540.
- This will increase your spouse’s retirement capital.
Limitations of making a spouse contribution:
- By making additional contributions, you reduce your available cash and you will only be able to access your contributions if you have met a condition of release.
- Spouse contributions will be counted towards your spouse’s non-concessional cap.
- If your spouse is 67 years or over, they will have to meet a work test to contribute to superannuation.