Spouse contributions¶

You can put money into your spouse's super fund, not just your own. This is a common way to help a partner who earns a low income, or who is not working, build up their super. If your spouse's income is low enough, you may also be able to claim a tax offset for making the contribution.

In one line

Pay into your spouse's super, and if their income is under a set limit you may be able to claim a tax offset for the contribution.

Why this matters¶

Super often falls behind for a partner who takes time out of work, works part-time, or earns less. Spouse contributions are a simple way to keep that partner's super growing. The possible tax offset means the contributor may also get a small tax benefit for helping.

What you will learn¶

What a spouse contribution is
When the contributor may be able to claim a tax offset
The main conditions, in general terms

Understanding the concept¶

A spouse contribution is an after-tax contribution you make from your own money into your spouse's super account. A spouse can be a married or de facto partner. The money goes into their super, in their name, and counts towards their super.

If your spouse earns a low income or does not work, you may be able to claim a tax offset for the contribution. A tax offset directly reduces the tax you have to pay. The ATO sets the rules each year. In general:

Your spouse's income needs to be under a limit the ATO sets.
The offset is largest when your spouse's income is very low, and it gets smaller as their income rises towards the upper limit.
Above that upper limit, no offset is available (but you can still make the contribution — you just do not get the offset).

There are a few other conditions the ATO lists. Both of you generally need to be Australian residents when the contribution is made, you must not be living apart permanently, and your spouse must stay within their own after-tax contributions cap and total super balance limit.

For accountants & bookkeepers

The offset is claimed by the contributing spouse in their tax return, not by the receiving spouse. It is calculated at 18% of eligible contributions, capped, with the eligible amount tapering once the receiving spouse's income passes a lower threshold and phasing out at an upper threshold. Both thresholds and the maximum offset are current figures — read them from the ATO's "Spouse super contributions" page for the relevant year rather than quoting from memory. The receiving spouse's contribution still counts against their non-concessional cap.

Example¶

Jordan works full-time. Their partner, Sam, has taken time out of paid work this year and has a very low income. Jordan pays some after-tax money into Sam's super fund as a spouse contribution.

Because Sam's income is under the limit the ATO sets, Jordan is able to claim a tax offset in their own tax return for making the contribution. Sam's super grows, and Jordan gets a small reduction in the tax they owe. If Sam had earned more than the upper limit, Jordan could still have paid into Sam's super — there just would not have been an offset.

Common mistakes¶

Assuming the offset always applies — it only applies while the receiving spouse's income is under the ATO's limit.
Mixing it up with a personal contribution — a spouse contribution goes into your partner's super, not your own.
Forgetting it still counts towards the receiving spouse's after-tax contributions cap.
Thinking both partners can claim — only the contributing spouse claims the offset.

How this works in myaccountant¶

In the app — a spouse contribution and its tax offset are matters between you, your super fund and the ATO at tax time, so they are not set up in myaccountant. myaccountant handles employer and salary-sacrifice super that flows through payroll. A spouse contribution is paid directly to your partner's fund, and the offset is claimed in the contributor's tax return.

Key points¶

A spouse contribution is after-tax money you pay into your partner's super.
A spouse can be a married or de facto partner.
If your spouse's income is under a set limit, you may claim a tax offset.
The offset shrinks as your spouse's income rises, and phases out at an upper limit.
The contribution still counts towards your spouse's after-tax contributions cap.
The contributing spouse claims the offset in their own tax return.

Learn next¶

General information only — not tax, super or financial advice.

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