You get a tax offset of up to $540 just for making a contribution into your spouse’s superannuation account. This is known as a Spouse Super Contribution.
A tax offset is a rebate in tax. This is better than a tax deduction.
A tax deduction merely reduces the amount of your income that is assessed for tax purposes, whereas a tax offset reduces your actual tax liability one it has been determined.
Spouse Super Contribution 2013/2014/2015
Am I eligible for this tax offset?
Well firstly, your spouse needs to have an assessable income of less than $13,800 for the year (including any fringe benefits and reportable employer super contributions).
If your spouse’s assessable exceeds $13,800, you are not eligible.
How do I get this tax offset?
In order to get the tax offset you need to make a non-concessional contribution into your spouse’s super account. A non-concessional contribution is a super contribution where a tax deduction has not been claimed.
For example, you would use cash in your personal bank account and contribute it into your spouse’s super account.
Keep in mind that you will need to have satisfied the work test by working at least 40 hours over a 30 consecutive day period prior to making a Non Concessional Contribution if you are over the age of 65. Further details on Superannuation Work Test.
How much is my tax offset?
You can claim 18% of a spouse super contributions in 2013/2014/2015 up to a maximum of $540.
Therefore, if you are making this spouse contribution purely to receive the tax offset, then there would be no need to contribute more than $3,000 (18% of $3,000 is $540), as you would not receive a tax offset for any amount contributed in excess of $3,000.
You are able to receive a part offset. For example, if you contributed $1,000 to your spouse’s super account, you could claim a tax offset of $180.
How do I receive this offset?
You notify your accountant that you have made a spouse contribution and the amount, so that they can calculate the tax offset amount and include it in your individual tax return. This tax offset will reduce your income tax liability.
Why would I make a Non-Concessional Contribution in excess of $3,000?
Generally you would make a Non-concessional Contribution for the following reasons:
– If you have maximised your concessional (deductible) contribution limits; or
– If you do not require a tax deduction, but would like to invest more of your savings in the tax-effective super environment
– If you want to receive the government co-contribution
Do I need to meet the Superannuation Work Test?
See this article for information in meeting the Work Test for Spouse Contributions. It relates to being gainfully employed and the amount of hours required to be worked.
If you would like anything clarified or have any further questions about Spouse Super Contributions 2013/14 or any other topics, please do not hesitate to leave a comment.