7th Jun 2018

How to claim tax offset up to $540 by spouse super contributions.

How to claim tax offset up to $540 by spouse super contributions.

Under the current 2017-18 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.

From 1 July 2017, to claim a spouse tax offset in your 2017-18 or future year tax returns you must ensure that:

  • the sum of your spouse’s assessable income, total reportable fringe benefits and reportable employer superannuation contributions is less than $40,000
  • 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 ($1.6 million for 2017-18)
  • you do not claim a deduction for the contributions
  • the contributions are made to a complying superannuation fund or a retirement savings account on behalf of your spouse
  • 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 must not living separately and apart on a permanent basis
  • 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 2018.
  • Lodged your tax return for the year ending 30 June 2018 in time.

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