These days it’s rare for a government to be more generous about handing out benefits, but when it comes to helping boost your spouse’s super, that infrequent event is set to happen.
Since 1 July 2017, the maximum income threshold for the spouse contributions tax offset jumped from the previous meagre upper limit of $13,800 to a much more generous $40,000. Before the July 2017 increase, the income levels for this tax offset had not been increased since the introduction of the spouse contributions rebate more than 10 years ago.
The higher income threshold means many more couples are now able to take advantage of this opportunity to boost their partner’s super account, while saving a few dollars in tax at the same time.
Spouse contributions tax offset: what is it?
Being fully or partially out of the workforce due to family duties, study or limited employment opportunities can affect how fast your super account balance grows. To help with this problem, the federal government introduced the ‘spouse contributions tax offset’, to enable a spouse earning a higher income, to be encouraged to make super contributions on behalf of a spouse earning a lower income.