Spouse superannuation contribution rebate

You can make a spouse contribution and may be entitled to a maximum tax offset of up to $540 each financial year if:

  • The person was your spouse when you made the contribution. A spouse includes a person who, although not legally married to you, lives with you on a genuine domestic basis as your husband or wife. This includes same sex couples.
  • You and your spouse were Australian residents when you made the contribution.
  • Your spouse (the recipient) is younger than 65 or between 65 and 70 years of age and has worked at least 40 hours in 30 consecutive days within the financial year. You however can be of any age, employed or retired.
  • The total of your spouse’s assessable income, including total reportable fringe benefits and reportable employer superannuation contributions for the financial year is less than $37,000. The tax offset then reduces as the recipient’s income increases beyond $37,000 and cuts out completely at $40,000.
  • You did not claim a tax deduction for the contributions.
  • The contribution was made to a superannuation fund which was a complying fund in the financial year in which you made the contribution.

Please note that you will not be entitled to the tax offset if at the time of making the contribution, you and your spouse are living separately and apart on a permanent basis.

 Government superannuation co-contribution

Many people who are on a low to medium income can make a personal NCC to their superannuation fund of up to $1,000 before 30 June in order to receive the Government’s co-contribution. The maximum co-contribution of $500 is received for incomes below $38,564 and reduces by 3.333c for every dollar of income above this threshold, cutting out at an income of $53,564 pa.

Please note that any salary sacrificed superannuation contributions will be added back to count towards your income for co-contribution eligibility purposes.

The super co-contribution:

  • is not subject to tax when it is paid to a super fund or RSA
  • is not included as income in your tax return
  • is preserved in a super fund or RSA and can only be accessed when other preserved amounts can be accessed

For an assessment of your superannuation entitlements and tax issues please contact me for a discussion.

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