EOFY Tips – Boost your spouse’s super and reduce your tax

Self Managed Super Funds

Does your spouse earn less than $13,800 p.a.?
Do you wish to increase your combined super savings?
Would you like to reduce your income tax liability?

 

How does it work?
If your spouse is on a low income, you may be able to make contributions into their super account and claim a tax offset. This contribution is a non-concessional contribution and will form part of the tax-free component of your spouse’s super account. You may receive an 18% tax offset when you contribute to your spouse’s super fund (see below for conditions). The offset only applies to the first $3,000 of your contributions in a year, with a maximum offset of $540. The offset reduces as your spouse’s income rises above $10,800p.a. and cuts out when your spouse’s income is $13,800 p.a. or more.

What does it mean for me?
Spouse contributions can be an effective way to increase your spouse’s super. As this is a tax offset rather than a tax deduction, you may receive a direct saving against your income tax liability. Using spouse contributions and other available strategies means couples can enjoy more benefits when they save together.

For further details call us on 8272 6444 and ask how we can assist or refer to the attached article.

Boost your spouses super and reduce your tax

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Disclaimer

Past performance is not a reliable indicator of future performance. The information and any advice in this publication does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. This article may contain material provided directly by third parties and is given in good faith and has been derived from sources believed to be reliable but has not been independently verified. It is important that your personal circumstances are taken into account before making  any financial decision and we recommend you seek detailed and specific advice from a suitably qualified adviser before acting on any information or advice in this publication. Any taxation position described in this publication is general and should only be used as a guide. It does not constitute tax advice and is based on current laws and our interpretation. You should consult a registered tax agent for specific tax advice on your circumstances.