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Spouse Super contributions refer to voluntary contributions made by a small business owner (or someone self-employed) to their spouse's superannuation fund. These contributions are made using after-tax dollars, with the potential benefit of a tax offset for the contributing spouse.
Key Points
- Tax Offset: You may be eligible to claim a tax offset of up to $540 per year if your spouse's income is below $40,000 (as per ATO website on 14 May 2024).
- Contribution Type: Spouse contributions are considered non-concessional contributions for your spouse.
- Eligibility:
- You and your spouse must be Australian residents.
- The contribution must be made to a complying super fund or an approved retirement savings account (RSA).
- You cannot claim a tax deduction for the contribution.
- You and your spouse cannot be separated permanently.
- Benefits:
- Boosts your spouse's retirement savings, especially if they have a low income or are not working.
- Provides a potential tax offset for you.
Claiming the Offset
Include the offset in your tax return.
Things to Consider
- There is a cap on non-concessional contributions ($110,000 per year for everyone).
- Speak with a registered tax agent or financial advisor to ensure you meet eligibility requirements and understand the tax implications.
Relevance to Small Business
Spouse contributions can be a tax-effective strategy for small business owners to help their spouse build their superannuation while potentially benefiting from a tax offset. However, it's important to ensure it aligns with your overall financial goals and tax situation.
Resources
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