Here’s what you need to know.
What Is a Spouse Contribution?
A spouse contribution is a voluntary payment you make into your spouse’s superannuation fund using after-tax income (i.e., money that’s already been taxed). It’s a way to help build up their retirement savings, especially if they’ve had periods of reduced income or super contributions, as well as to potentially reduce your own tax liability.
What Are the Benefits?
1. Tax Offset of Up to $540
If your spouse earns less than $37,000 per year, you may be eligible for a tax offset of up to $540 when you contribute $3,000 or more to their super. Partial offsets are available for spouses earning up to $40,000.
Example: If you contribute $3,000 and your spouse earns $36,000, you could receive the full $540 tax offset.
2. Grow Your Combined Super Faster
Retirement planning isn’t just individual—it’s a shared journey. Spouse contributions can help even out imbalances in super balances between partners, ensuring both of you have a more secure retirement.
3. Support Career Breaks
Many people take time off work for caregiving. Spouse contributions can help soften the long-term impact on super that often results from time out of the workforce.
Who Is Eligible?
To qualify for the tax offset, all of the following conditions must be met:
- You contribute to a complying super fund on behalf of your spouse.
- Your spouse must be:
- Earning less than $40,000 per year, and
- Either under age 75 and
- Under the work test rules (if aged 67–74, they must meet a minimum work requirement unless eligible for the work test exemption).
- You must be married or in a de facto relationship.
- You must both be Australian residents at the time of the contribution.
- you and your spouse must not be living separately and apart on a permanent basis when making the contribution.
Things to Consider
Contribution Limits
Spouse contributions count toward your spouse’s non-concessional (after-tax) contribution cap, which is $120,000 per year (or up to $360,000 over 3 years if eligible for the bring-forward rule).
Access to Super
Super remains preserved until retirement age or another condition of release is met, so your spouse won’t be able to access the funds early.
Alternatives to Consider
In addition to spouse contributions, consider:
- Contribution splitting: You can split up to 85% of your concessional (before-tax) contributions with your spouse each year.
- Government co-contributions: If your spouse earns less than $60,400 and makes a personal (after-tax) contribution to their own super, they may be eligible for a co-contribution of up to $500.
Spouse contributions to super aren’t just a financial strategy—they’re a way to invest in your partner’s future security and show that you’re planning for retirement as a team. With the added bonus of a tax offset, it’s worth considering if one of you has a lower income or a smaller super balance.
If you think you fit the above criteria and would like to know more about the process for making a spouse contribution, please contact the office on (03) 9686 1784 or email your Adviser.
Disclaimer: The information provided in this blog is intended for general informational purposes only and does not constitute specific advice or opinion. You should not act or rely upon the information in the blog posts or articles on this website without seeking the advice of a qualified professional who is licensed to provide advice tailored to your specific circumstances. Please do not to hesitate to contact Pursue Wealth with inquiries or to make an appointment to discuss the specifics of your circumstances with one of our qualified advisers.
