SMSF Strategy Guide: Online Library

Non-concessional contribution strategies

SMSF Education
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 >.

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