Boost Your Partner’s Super and Reduce Your Tax: How Spouse Contributions Can Work for You
Looking for a way to boost your spouse’s retirement savings while potentially reducing your own tax bill? Spouse super contributions could be a smart addition to your shared retirement planning strategy.
Maybe you and your partner started out with similar super balances, but life happened. One of you might now out-earn the other, causing a gap in retirement savings. Or perhaps your spouse took time away from work due to health issues or caring responsibilities, and their super has taken a hit.
By making spouse super contributions, you can help support your partner’s retirement savings during periods of reduced or no income. And if you meet certain criteria, you may also be eligible for a tax offset—giving your own tax bill a helpful nudge in the right direction.
What Is a Spouse Super Contribution?
A spouse super contribution is a contribution you make directly into your partner’s superannuation account.
If your spouse (married or de facto) earns less than $40,000 in a financial year, you may be able to claim a tax offset of up to $540 on the first $3,000 of contributions you make on their behalf.
Eligibility for the Spouse Super Contribution Tax Offset
To claim the spouse contribution tax offset for the 2024–25 financial year, you must meet all of the following conditions at the time of making the contribution:
- You and your spouse must be Australian residents.
- You cannot be permanently living apart.
- The contribution must be made to a complying super fund or approved retirement savings account (RSA).
- It must be a non-concessional (after-tax) contribution.
- Your spouse’s total income (including reportable fringe benefits and reportable super contributions) must be less than $40,000.
- Your spouse’s non-concessional contributions must not exceed $120,000 for the financial year (your contribution counts toward this cap).
- Your spouse’s total super balance must be less than $1.9 million as of 30 June 2024.
- Your spouse must be under 75 years old at the time of the contribution.
How Much Is the Spouse Super Contribution Offset?
The maximum tax offset available is $540 if your spouse earns $37,000 or less. The offset reduces gradually as your spouse’s income increases, phasing out completely once it reaches $40,000.
The offset is calculated as 18% of the lesser of:
- $3,000 minus the amount your spouse earns over $37,000; and
- the total spouse contributions you make for the year.
Example
Bill and Heather are married. In 2024–25, Bill earns $36,000, and Heather contributes $4,000 to his super fund (counting towards his non-concessional cap). As they meet all eligibility requirements, Heather can claim the full tax offset:
- $3,000 – 0 (since Bill earns under $37,000) × 18% = $540
- $4,000 × 18% = $720
Heather can claim the lower of these two amounts, so she receives a $540 tax offset.
Important note about the spouse super contributions offset
Only direct contributions into your spouse’s super fund qualify for the tax offset.
Super contributions you make to your own fund and then split with your spouse are not eligible, as these are considered transfers or rollovers—not contributions—for offset purposes.
Final Thoughts
Retirement planning—much like relationships—can be complex.
Spouse super contributions can be a valuable way to support each other’s financial future while also providing potential tax benefits.
To make sure this strategy suits your specific circumstances, seek tailored advice from a qualified professional.
Disclaimer: The information on this page is for general information purposes only and is not specific to any particular person or situation. There are many factors that may affect your particular circumstances. We advise that you contact Mathews Tax Lawyers before making any decisions.