8th Jun 2020

How to claim tax offset up to $540

Spouse superannuation contributions & tax offset up to $540

Under the current 2019-20 tax rules, you may be able to claim an 18% tax offset on super contributions up to $3,000 that you make on behalf of your non-working or low-income-earning spouse. You can contribute more than $3,000, but you won’t receive the spouse contribution tax offset on anything above $3,000.

If your spouse receives $37,000 or less in assessable income, then you can access the maximum tax offset of $540, provided an after-tax contribution of at least $3,000 is made. The tax offset is then progressively reduced until the tax offset reaches zero for spouses who earn $40,000 or more in assessable income in a year.

You will be entitled to claim a spouse tax offset of up to $540 in your 2019-20 tax returns if:

  • the sum of your spouse’s assessable income (excluding any assessable first home super saver released amount), total reportable fringe benefits and reportable employer superannuation contributions is less than $40,000
  • the contributions you made on behalf of your spouse were not deductible to you
  • the person was your spouse when you made the contribution
  • both you and your spouse must be Australian residents (for tax purpose) when the contributions were made
  • when making the contributions you and your spouse were not living separately and apart on a permanent basis
  • your spouse has not exceeded their non-concessional contributions cap for the financial year
  • your spouse’s total superannuation balance on 30 June of the previous financial year is below general transfer balance cap of $1.6 million.
  • the contributions must not be made to satisfy a family law obligation to split contributions with your spouse

You can claim the tax offset for more than one spouse during financial year if you satisfy the eligibility rules for each spouse. The tax offset is the lesser of the sum of the offset entitlement for each spouse, or $540.

To claim the tax offset, you need to complete the superannuation contributions on behalf of your spouse question in the supplementary section of your tax return. You also need to complete spouse details – married or de facto in your tax return.

What I need to do?

If you are eligible:

  • Make an after-tax contribution up to $3,000 before 30 June 2020.
  • Lodged your tax return for the year ending 30 June 2020 in time.

This is a general advice, for more information or to discuss your individual case please contact us.