Do you have a spouse? Would you like to pay $540 less tax?

If the answer to both of these is yes then read on as it is still possible to get a tax offset for superannuation contributions made on behalf of your spouse. It’s free money from the government, so if funds allow, why not do it?

To be eligible for the offset you need to fulfill these requirements

1. The income test – the receiving spouse’s income must be less then $40,000 (from 1 July 2022)
2. The age test – the receiving spouse must be under age 67, or under 75 if working.
3. The residency test – both of you must be Australian resident
4. The balance test – the spouse’s superfund balance must be less than $1.7m
5. The contributions test – the spouse must not have exceeded their non-concessional caps

The definition of Spouse includes de-facto and same sex couples as long as you are living together. The maximum rebate is achieved by contributing $3,000 and thereby receiving an 18% ie $540 offset.

The contribution is not taxed on entering the fund and counts towards the spouses’ $110k non concessional cap.

ACTION

Transfer up to $3,000 from your personal bank account into your spouses’ superfund ensuring you use the correct BPay code for a spouse contribution. For SMSF just make a transfer and put spouse contribution and the member name in the description. Make the transfer prior to 30 June. Keep the receipt of transfer to included in your 2023 tax return to claim the offset.

Lindsay 0413 952 180