Tax rebate for Spouse Super Contribution

If your spouse’s income is $40,000 or less, you may be eligible to claim a tax offset of up $540 in your tax return for any super contributions you made on your spouse’s behalf (a spouse super contribution).  This reduces the amount of income tax you need to pay.  And could increase your tax refund by as much as $540.

 How much money will the government give you?

If your spouse’s total income is $37,000 or less, the offset will be 18% of any contribution made to your spouse’s super fund up to a maximum of $540. For example if you contribute:

• $3,000, the offset will be $540.
• $1,000 the offset will be $180.
• $5,000, the offset will be $540.

If your spouse’s total income is between $37,000 and $40,000, the offset gets reduced by 18 cents for every dollar your total income exceeds $37,000. For example if your total income is $38,000 and you contributed $3,000 into your spouse’s super fund the offset will be $360 (being $540 – [($38,000-$37,000) x 0.18)].

 Note both spouses can do this if you both qualify for the spouse super contribution.

How do I know if I am eligible to get tax offset from the Government?

To be eligible to receive this payment for the 2017 – 2018 year the conditions are:

• Your spouse’s super balance must be below the Balance transfer cap of $1.6 million as at 30 June 2017.
• Your spouse’s total income must be less than $40,000 in the 2017-2018 tax year. The government defines your total income to be your taxable income plus any reportable fringe benefits plus any salary sacrifice super contributions (not the employer 9.5% super component paid on top of your taxable income) less any allowable business deductions.
• You must make the payment(s) on behalf of your spouse to a complying super fund before 30 June 2018. Note you can pay this in instalments as long as the money is in your super fund account on or before 30 June 2018. You may need to make any payments well before this date to ensure that your super fund processes these payments – If you are going to do this please speak to your superfund to ensure that your payment is received in time to be processed by the superfund by 30 June 2018.
• This payment must not have been claimed as an income tax deduction (i.e. you made the payment out of post taxable income).
• You and your spouse must be Australian residents

And, to claim the tax offset, you need to complete the Superannuation contributions on behalf of your spouse question in the supplementary section and the Spouse details – married or de facto in your tax return.

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Wayne Wanders

The Wealth Navigator

wayne@thewealthnavigator.com.au

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