Spouse Super Contribution

A spouse super contribution is a non-concessional contribution you make into your spouse's super fund using your after-tax money. If your spouse earns less than $40,000 in total income (including assessable income, reportable fringe benefits, and reportable super contributions), you may be entitled to a tax offset of up to $540 (18% of contributions up to $3,000). The offset phases out between $37,000 and $40,000 of spouse income.

The contribution counts towards your spouse's non-concessional contributions cap ($120,000 per year), so check that they have available cap space before contributing. Your spouse must be under 75 years old at the time of the contribution. There is no work test requirement for the receiving spouse if they are under 75.

Spouse contributions are particularly useful for couples where one partner is not working or earning a low income (e.g., a stay-at-home parent). Beyond the immediate tax offset, the strategy helps build the lower-earning spouse's super balance, which improves the couple's overall retirement savings and allows both partners to use their individual transfer balance cap ($2.1 million each) in retirement. It can also reduce the risk of one partner's super exceeding caps and thresholds.