A maximum tax offset of $540 is available to the contributing spouse for making a $3,000 spouse contribution, where the receiving spouse’s assessable income*, total reportable fringe benefits and reportable employer super contributions is $37,000 or less. The tax offset gradually reduces for income above $37,000 and completely phases out when the income reaches $40,000. The offset also reduces where the spouse contribution is less than $3,000.
This non-refundable tax offset can help the contributing spouse reduce their tax liability.
Note: A spouse contribution counts as a non-concessional contribution for the spouse receiving the eligible spouse contribution.
From 2020-21, the Government has proposed allowing spouse contributions to be made where the receiving spouse is under the age of 75 (rather than age 70 as is currently the case). At the time of writing this proposal has not been legislated.
* Assessable income in this case excludes assessable FHSS released amounts.
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