What is a spouse contribution?

A spouse contribution is when your spouse contributes money into your super account. 'Spouse' means a legal, or de facto husband and wife, and since 1 July 2009, it includes same sex couples.

A de facto relationship means that a person lives with you on a genuine domestic basis. It does not include a person who lives separately and apart from you on a permanent basis, even though you may be legally married.

How do spouse contributions work?

Spouse Contributions are contributions made on behalf of a spouse, even if they are not employed. Once a spouse makes such a payment, the money is fully vested in the receiving spouse’s super account. This means that the contributing spouse no longer has any right to the money and it cannot be refunded back to them.

Spouse contributions are limited to $150,000 per annum or the ‘bring forward’ (also referred to as the ‘three year’) rule can be applied which allows up to $450,000 to be contributed in one year. Spouse contributions count towards the receiving spouse’s non-concessional contributions cap.

The contributing spouse:

• can be any age
• must be an Australian resident
• must be receiving assessable income (from any source)

The receiving spouse:

• must be under age 65 when the payment is received (age 70 if working at least 40 hours in a period of not more than 30 consecutive days during the financial year)
• must be an Australian resident

In some circumstances, the contributing spouse may be eligible for a tax offset of up to $540 on these superannuation payments if:

• the payment is made on or after 1 July 1997
• the payment is made after tax (ie. not salary sacrifice)
• the payment is not tax deductible for the spouse
• both the contributing and receiving spouse are Australian residents
• at the time of making the contributions the contributing and receiving spouses were not living separately and apart on a permanent basis
• and the receiving spouse's assessable income, including reportable employer super contributions and reportable fringe benefits are less than $13,800 p.a. for the maximum tax offset (or $10,800 for a partial offset).

The tax offset is not available for contributions split to your spouse's super. More on contribution splitting.

Preservation and tax relating to spouse contributions:

If the receiving spouse has never been employed before turning age 65, then any benefits arising from payments made on that spouse's behalf are preserved until age 65.

If the receiving spouse has been employed, then benefits arising from payments made on that spouse's behalf are preserved between age 55 and 60 depending on their date of birth. For tax purposes, payments are treated as:

• tax free (but will be preserved)
• tax free when withdrawn (but interest on these amounts may be taxed)
• not subject to 15% contributions tax

How do I make spouse contributions?

To make payments on a spouse's behalf, the paying and receiving spouse must complete a Spouse Contribution Advice Form

Need more information about spouse contributions? Contact Us or call 1300 655 002 (Mon-Fri 8.00am-5.30pm AEST).