Tax offset for spouse contributions is now easier to access. If you contribute to your spouse’s superannuation fund, you are able to claim a maximum tax offset of $540.
From 1 July 2017, the income threshold for the spouse has increased from $10,800 to $37,000 making it much easier to claim if the spouse’s income is less than $37,000.
Entitlement to the tax offset is phased out above $37,000 and all entitlement is lost when the spouse’s income is above $40,000.
The spouse’s income includes the total of their assessable income, reportable fringe benefits and reportable employer superannuation contributions.
Some of the additional requirements are that the spouse must be under 70, no deduction is claimed for the contribution, their non-concessional contribution cap has not been exceeded or their transfer balance cap of $1.6 million has not been exceeded.
The tax offset is generally calculated at the lesser of 18% of the spouse contribution or 18% of $3,000.
The spouse contribution will need to be $3,000 to receive the maximum tax offset of $540. It provides some incentive to assist your retirement and superannuation strategies.