HOW DO SPOUSE CONTRIBUTIONS WORK?
To better understand how spouse contributions work in practice, let’s take a look at Greg’s example. We are only looking at tax in this example, not investment earnings.
- Greg has a salary of $75,000 per year (before deductions, including tax).
- Greg would like to make a contribution into his spouse’s superannuation account to help boost her super balance and to benefit from the spouse contribution tax offset.
Greg’s current situation
Gross salary income $75,000
- Income tax $17,422
Net disposable income $57,578
- Income tax $17,422
Net disposable income $57,578
If Greg had a non-working spouse
If Greg contributed $3,000 after tax into his non-working spouse’s super account, he would be eligible to receive a $540 tax offset.
Here’s how it would look based on Feb 2015 tax and Medicare rates:
Gross salary income $75,000
- Income tax $17,422
+ Tax offset $540Net disposable income $58,118
- (After-tax) spouse contribution $3,000Net income after spouse contribution $55,118
- Income tax $17,422
+ Tax offset $540Net disposable income $58,118
- (After-tax) spouse contribution $3,000Net income after spouse contribution $55,118
If Greg’s spouse had an assessable income of $12,000
If Greg contributed $3,000 after-tax into his spouse’s super account, and she earned an assessable income of $12,000, he would be eligible to receive a $324 tax offset.
Here’s how it would look:
Gross salary income $75,000
- Income tax $17,422
+ Tax offset $324Net disposable income $57,902
- (After-tax) spouse contribution $3,000Net income after spouse contribution $54,902
- Income tax $17,422
+ Tax offset $324Net disposable income $57,902
- (After-tax) spouse contribution $3,000Net income after spouse contribution $54,902
Source: IndustrySuper
SUPER: HOW DO SPOUSE CONTRIBUTIONS WORK?
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