If you made a contribution to a superannuation fund on behalf of your spouse who has a low income or not working, you may be liable to a tax offset. Learn more about if you can claim your spouse’s super contribution tax offset.
How to make a super spouse contribution?
Basically, there are two ways for a spouse super contribution:
- You may be allowed to split contributions you have made to your own super, by rolling them over to the super of your spouse- called contributions-splitting super benefit.
- You can make spouse contributions to your spouse’s super, considered their non-concessional contribution, which can entitle you to a tax offset.
How do I claim my spouse super contribution tax offset?
You may be eligible to claim a tax offset of up to $540 for the 2023-24 financial year if:
- The total assessable income of your spouse, combined reportable fringe benefits amounts, and reportable employer super contributions was below $40,000.
- The contributions you made on behalf of your spouse were not deductible for you.
- The individual was your partner or spouse when you made the contribution.
- Both you and your spouse were Australian residents at the time the contributions were made.
- You and your spouse were not living separately and permanently when the contributions were made.
- Your spouse did not exceed the non-concessional contributions cap for 2023-24, and their total superannuation balance was less than $1.7 million as of 30 June 2023.
If the contributions were made to a super fund, then it should comply with the super fund for the income year in which you made the contribution. If you had more than one spouse during 2023-2024 and you meet the requirements for the tax offset for more than one spouse, the tax offset is below the sum of the tax offset entitlements for each spouse, or $540.
The tax offset is calculated as 18% of the lesser of:
- $3,000, minimised by $1 for every $1 that the sum of assessable income of your spouse, the sum of reportable fringe benefits amounts and reportable employer super contributions for the year was above $37,000.
- The sum of your contributions for your spouse for the year.
The tax offset for eligible spouse contributions is not allowed to be claimed for super contributions that were made by you to meet your spouse’s entitlements under a family law obligation to split super with your spouse.
How are split contributions treated and reported?
A contribution split with your partner is known as a contributions-splitting super benefit and is considered a rollover to your spouse and not treated as a new contribution for them. Additionally, splitting your contributions with your spouse doesn’t minimise the sum of contributions made for you or change their features for your contributions caps. For instance, if you make a personal contribution and apply for a tax deduction for it, then it will count towards your concessional contributions cap for the year even if you split and roll it over to your partner.
How and when to apply to split your contributions with your spouse?
You can apply to split your contributions with your spouse at the end of the income year in which the contributions were made. You apply to your fund to split your personal concessional contributions and employer contributions made during the previous year through the superannuation contributions splitting application. There are some restrictions on the amount and type of contributions you can split. If you plan to split any part of your contributions with your partner but need to claim a tax deduction for them, you should give your fund the notice of intent to claim a deduction prior to applying to split the contributions.
Conclusion
You need to meet the eligibility criteria as mentioned to claim a spouse super contribution tax offset. If you are unsure about the eligibility and ways to claim spouse super contribution tax offset, you can consult Reliable Melbourne Accountants.