The Measure – Currently, a tax offset of up to $540 is available for individuals who make superannuation contributions to their spouses with incomes up to $10,800.
- The Government will allow more people to access the offset by extending eligibility to those whose recipient spouses earn up to $40,000.
- There are no changes to the current aged based contribution rules. The spouse receiving the contribution must be under age 70 and meet a work test if they are aged between 65 to 69.
Around 5,000 Australian families are expected to make use of this opportunity which will mostly benefit women who are more likely to be the lower income earner in families and have lower superannuation balances.
[Treasury website – super changes]
The details – From 1 July 2017, the Government will extend the eligibility rules for claiming the tax offset for superannuation contributions partners make to their low income spouses.
- The current 18 per cent tax offset of up to $540 will be available for any individual, whether married or de facto, contributing to a recipient spouse whose income is up to $37,000. This is an increase from the current $10,800.
- As is currently the case, the offset is gradually reduced for income above this level and completely phases out at income above $40,000.
- There are no changes to the current aged based contribution rules. The spouse receiving the contribution must be under age 70, and meet a work test if aged 65 to 69.
[Treasury Factsheet]