Boosting your spouse’s super whilst trimming your tax bill sounds too good to be true. We promise, its not a trick.
The spouse contribution tax offset is one of those small but mighty strategies that helps you save tax while boosting your partner’s retirement. It takes five minutes, costs you nothing extra in tax, and makes you look like a legend to your spouse. Wins all round.
If your spouse earns a lower income, you can tip money into their super and claim a tax offset of up to $540.
An offset is the good bit. It reduces your tax bill dollar for dollar, like finding a forgotten Bunnings gift card in a drawer… except this one definitely works at checkout.
To qualify:
✅ You must be married or in a de-facto relationship
✅ Your spouse needs to earn under $40 000 (this includes any reportable fringe benefits and reportable super)
✅ You need to make a non concessional contribution to their super fund
✅ Your spouses total super balance at the start of the financial year is under the transfer balance cap (currently $2m)
✅ Your spouse hasn’t gone over their non-concessional contribution cap (currently $120k per year)
✅ You both need to be Australian residents for tax purposes
✅ Your spouse must be under 75
You put money into your spouse’s super account. Up to $3 000 is the sweet spot because that’s what unlocks the maximum $540 offset. You can contribute more, but the offset maxes out there.
The offset phases out as their income rises above $37 000 and disappears completely once they hit $40 000. Classic ATO move - generous, but with conditions.
Its free money and it’s simple. Your partner gets extra super working quietly in the background. You get credit for being financially thoughtful.
Here’s what you’re really getting:
• A tax saving of $540 that doesn’t require 300 hours of paperwork
• A boost to your spouse’s super, which helps keep their super balance ticking over
• A legal way to move money into the lower-balance account
• A little bit of couple’s teamwork on paper - even if someone still leaves dishes in the sink
Tip in: $3 000
Spouse’s income: under $37 000
Your tax offset: $540
Actual effort required: not much
This move shines when one partner is taking time off work for kids, study, career shifts or a sabbatical. It also works beautifully for part-timers, casuals or anyone with unpredictable income.
If your spouse earns more than $40 000, it’s still fine to contribute… you just won’t get the offset. In other words, the love is still there, the tax benefit isn’t.
The spouse super contribution offset is one of those rare moments where the ATO hands you a small financial thank-you for being decent to your partner.
You tip a bit of after tax money into their super, you pocket up to $540 at tax time and you quietly earn brownie points on the home front. It’s simple, it’s generous by ATO standards and it’s one of the few wins in life where everyone walks away happy.
Take it.
– The team at PAL (making accounting slightly less boring since way back when)
Disclaimer: This article is here to give you general info only, not professional advice specific to your unique situation. While efforts are made to ensure accuracy, the content may change over time. We can’t take responsibility for any decisions based on the contents of this article, so be sure to chat with your accountant or advisor first!
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