SMSF Strategy Guide: Online Library

Eligible Spouse Contributions

BACKGROUND

An Eligible Spouse Contribution is where a contribution is made into a SMSF member account by the spouse of that member.

TAX OFFSET OF UP TO $540

If one member of a couple has adjusted taxable income less than $40,000,
the other spouse may be eligible to contribute up to $3,000 into that
spouse’s account and receive a tax offset up to $540.

The offset gradually reduces for income above the $37,000 limit and phases out at an income of $40,000.

THE CRITERIA

For a contribution to be an “eligible spouse contribution”, the
following conditions must be met:

The contributor:

• Can be any age
• Must derive their income, profits or capital gains in Australia
• Does not claim a tax deduction for the contribution

The receiving spouse:

• Must be the spouse of the contributor at the time of the contribution
• Must satisfy the work test if aged between 65 & 69.
• Must not be aged 70 or over.
• must not have exceeded their NCC caps, and
• must not have a super balance of $1.6m or >.