Spouse Superannuation Contributions Superannuation contributions made on behalf of a non-working or low-income earning spouse, whether married or de-facto, to a complying super fund or retirement savings account (RSA) may be eligible for various tax benefits. Contributions Limit While there is a maximum amount that may be claimed as a tax rebate (see below) for spouse super contributions, there is no actual limit to the amount of undeducted contributions which may be made on behalf of your spouse. Taxation All after-tax spouse contributions made on behalf of a spouse are classified as undeducted contributions which will not be subject to tax when made into the superannuation fund or RSA. In addition, these after-tax contributions will also not be counted towards the reasonable benefits limit (RBL) of your spouse. Spouse Superannuation Contributions Tax Offset A tax rebate of 18% of a maximum contribution of $3,000 can be claimed if your spouse's assessable income is less than $10,800. This equates to a total possible tax rebate of $540. The level of contribution where a rebate can be claimed is offset for each dollar over $10,800 of your spouse's assessable income meaning that you will not be able to claim a tax rebate for any spouse superannuation contributions if their income is over $13,800. To qualify for this tax rebate, both you and your spouse must be Australian residents who were not permanently living separately or apart when the contributions were made. ETP Thresholds Each individual is subject to an eligible termination payment (ETP) tax-free threshold whereby any amount over this level will be subject to tax (see Superannuation Taxation). As such, should the total accumulated benefits are approaching or exceeding this level, you may wish to make contributions towards your spouse's super fund instead of making personal contributions towards your own fund assuming your spouse's accumulated benefits are below the threshold. Splitting Contributions Recent tax changes allow high-income earners to split their super contributions with spouses to further lower their overall tax paid on superannuation. The proposal will provide individuals with the choice of splitting part of their employer super contributions into their spouse's fund rather than their own. This will provide another means for high-income earners to remain below the ETP tax-free threshold or RBL while funneling funds into their non-working or lower-income earning spouse's super. #recom2()