Taking care of your partner
If your partner is earning a low income or taking time off work for caring responsibilities, then it’s likely they’re not earning much super. This means that their super can fall behind. It’s a big problem in Australia.
Luckily, there are ways you can help your partner’s superannuation continue to grow, such as making a Spouse Contribution to their super account.
Who qualifies as a spouse?
You do not have to be married for your partner to qualify as a spouse. De-facto relationships (defined as a couple relationship where you have been living together on a genuine domestic basis for at least two years) also count. Partners of the same or opposite sex are both valid.
When is it worthwhile from a tax perspective to contribute to your spouse's super fund?
As long as your partner has not exceeded their non-concessional contribution cap, and their super balance does not exceed $1.6 million, it makes good tax sense to contribute to your spouse's fund.
How does it work?
Spouse superannuation contributions can be made for spouses earning up to $40,000 per year. If your spouse has earnings below $37,000 you can claim the maximum tax offset of $540 when you contribute $3,000 to his/her super.
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General advice disclaimer
This is general information only and does not take into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs and consider obtaining independent professional advice before making an investment decision. If information relates to a specific financial product you should obtain a copy of the product disclosure statement for that product and consider that statement before make a decision whether to acquire the product.