Spouse Contributions: Looking for ways to boost your super?

My spouse and I are looking at ways to boost our super. How do spouse contributions and the associated tax offset work?

Spouse contributions can be a great way to build your partner’s superannuation and potentially benefit from a tax offset. If your spouse earns less than $37,000 a year, you may be eligible for a tax offset of up to $540 when you contribute to their super. This offset reduces as their income rises and cuts out once they earn $40,000 or more. The contribution itself is treated as a non-concessional contribution, so it counts toward your spouse’s contribution cap. This strategy can help you grow retirement savings as a couple, especially if one partner is out of the workforce or working part-time.

Like all strategies involving superannuation and taxation, it’s important to consider your broader financial plan and check your eligibility. Your financial adviser can help you assess whether this approach suits your circumstances and how to implement it effectively.