Contributing to your spouse’s superannuation can help build your joint savings and may also provide tax benefits.
If you contribute to your spouse’s superannuation and your spouse’s assessable income, including reportable fringe benefits and reportable employer super contributions, is less than $37,000 for the financial year, you may be eligible to receive a tax offset of up to $540 (18% on the first $3,000 that you contribute to their account). The tax offset amount reduces when your spouse’s income is greater than $37,000 and completely phases out when your spouse’s income reaches $40,000.
You can contribute to your spouse’s super by:
- making a non-concessional (after tax) contribution to your spouse’s account, or
- splitting your contributions with your spouse.
Who is eligible for spouse contributions?
You can contribute to your spouse’s super if your spouse is:
- under 65 years of age, or
- under 70 years of age and has been in paid work for at least 40 hours over 30 consecutive days during the financial year in which the contributions are made.
If you are reaching your contributions limits and want to contribute more, or if your partner is closer to preservation age than you are, it may be worthwhile splitting your super contributions.
Splitting your contributions means transferring or rolling over a portion of the contributions made to your super account into your spouse’s super account. You can contribute up to 85% of your own concessional (before-tax) contributions to your spouse’s super account in one financial year, as long as this is less than your concessional contribution cap (generally $25,000 per year).
Please note you can only apply to split your contributions with your spouse after the end of a financial year. This contribution will only count toward the contributing spouse’s contribution caps, not the receiving spouse’s cap.
How do I make spouse contributions?
If your spouse isn’t already an Intrust Super member, why not ask them to join and enjoy all the benefits of being an Intrust Super member? They’ll have their own Intrust Super account that they can contribute to, and may even be able to ask their employer to pay their contributions into the fund. They can also rollover any other superannuation accounts they may have into Intrust Super, making their superannuation easier to manage and possibly saving themselves fees. Remember to check any exit fees and changes to insurance cover before closing any accounts.
Opening an account for your spouse also means they can become eligible for insurance cover through the fund at our very competitive rates. You can read more about our insurance options here.
To make a spouse contribution, make sure that your spouse has an Intrust Super Account, then simply complete a Spouse Contribution Advice Form and send it back to us with your contribution.
Refer to www.ato.gov.au for full eligibility conditions.