SUPERANNUATION
Spouse contributions
Fact sheet
Contribute to your spouse’s super to receive a tax
offset and build retirement savings.
Spouse contributions How does it work?
If your spouse’s assessable income (plus reportable fringe
A spouse contribution involves making a contribution to benefits and reportable employer super contributions) totals
a spouse’s super fund to build their retirement savings. $10,800 or less, you can reduce your tax by up to 18% on the
first $3,000 of after-tax income you contribute into their super.
What’s in it for me and my spouse? This means you get $540 back on the $3,000 you contribute.
This may not sound like much as a one-off, but over time it can
• You may receive a tax offset for contributions made on
grow to a substantial saving.
behalf of a lower-income earning or non-working spouse.
The tax offset decreases as your spouse’s income exceeds
• Boost the super balance of a spouse who has little or no
$10,800 and cuts off when their income exceeds $13,800.
super and grow your retirement savings as a couple.
This doesn’t mean you can no longer contribute, it just means
• Accumulate wealth even if one spouse isn’t working since you won’t receive a tax offset.
earnings within super may be taxed at a lower rate than
Spouse contributions aren’t subject to the 15% contributions
investments outside super.
tax and they are tax-free on withdrawal. Contributions you
make on behalf of your spouse will count towards their
Who can this strategy work for? non-concessional contributions cap.
Generally, you can make spouse contributions on behalf
of your spouse if:
• your spouse is under 65 years of age
• your spouse is between 65 to 69 years of age inclusive
and meets a work test.
To claim the tax offset, both you and your spouse must
Non-concessional contributions cap
be Australian residents for tax purposes and not be living An annual non-concessional contributions cap applies
separately and apart on a permanent basis. Australian residents each financial year. The non-concessional cap is
in a de-facto relationship (same or different sex) are able to $150,000 for 2010/2011 and will be indexed over time.
claim this tax offset as well. If your spouse is under 65 years of age at any time
during the financial year, larger contributions of up to
$450,000 can be made by bringing forward two years
contributions caps.
Contributions in excess of the non-concessional
contributions cap are taxed at 46.5%.
Case study – Spouse contributions
Meet Craig
Craig is 35 years of age and currently earns $80,000 p.a.
He is married to Angela, also 35 years of age, a
home-maker who does not earn any income. Craig
receives an annual bonus of $3,000.
Instead of placing the money directly into his super fund,
Craig speaks to a financial adviser to assess his options.
His adviser suggests he contribute the $3,000 into Angela’s
super fund. By doing this, Craig receives a $540 tax rebate
in the 2010/11 tax year for the $3,000 he contributes. Not
only does he save on tax, but Craig and Angela will be
better off in retirement.
Need more information? Adviser stamp
Contact the financial adviser
on the number provided.
OnePath Custodians Pty Limited ABN 12 008 508 496, AFSL 238346, RSE L0000673 is the issuer of this information. The issuer is a wholly owned subsidiary of Australia and
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is owned by ANZ it is not a Bank. Except as described in any relevant Product Disclosure Statement (PDS), an investment with the issuer is not a deposit or other liability of
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This information is current as at November 2010 but is subject to change. The information provided is of a general nature and does not take into account your personal
needs, financial circumstances or objectives. The case study is hypothetical and is not meant to illustrate the circumstances of any particular individual. Before acting on this
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