Increasing income eligibility for the spouse contribution tax offset

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June 1, 2022
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Article published by RJS Wealth Management Pty LtdYou may be able to claim an 18{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} tax offset on super contributions of up to $3,000 you make on behalf of your non-working or low-income-earning spouse. From 1 July 2017 the spouse contribution tax offset income limit will increase from $13,800 to $40,000 per annum.You will be entitled to a tax offset of up to $540 per year if you meet all of the following conditions:

  • the sum of your spouse's assessable income, total reportable fringe benefits amounts and reportable employer super contributions was less than $40,000
  • the contributions were not deductible to you
  • the contributions were made to a super fund that was a complying super fund for the income year in which you made the contribution
  • both you and your spouse were Australian residents when the contributions were made
  • when making the contributions you and your spouse were not living separately and apart on a permanent basis.

Note: The spouse contribution tax offset can not be claimed for super contributions that you made to your own fund, then split to your spouse. That is called a rollover or transfer, not a contribution.

spouse-contributions

Superannuation can be complicated. To find out how these and other superannuation reforms affect you, what action you should take or to simply ask a question, contact an RJS Wealth Management Professional on 1300 256 526. In many circumstances, it may be ideal to take action now.Related articles:

Source: SuperGuide.com.au, MLCThis blog has been prepared by RJS Wealth Management Pty. Ltd. ABN 24 156 207 126. RJS Wealth Management Pty. Ltd. is a Corporate Authorised Representative (No. 438158) of Modoras Pty. Ltd. ABN 86 068 034 908 an Australian Financial Services and Credit Licensee (Number 233209). The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals personal circumstances have been taken into consideration for the preparation of this material. Any individual making a decision to buy, sell or hold any particular financial product should make their own assessment taking into account their own particular circumstances. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Pty Ltd recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this fact sheet can change without notice. Modoras Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication.

June 1, 2022

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