Spouse Super Contributions in Australia: $540 Tax Offset Explained

If your spouse earns less than you, you may be able to contribute to their super and receive a tax offset of up to $540.

It sounds technical. It is not.

You make an after tax contribution into your spouse’s super fund. If certain conditions are met, you receive a tax offset in your own tax return.

The detail matters though. Especially the income definition.

This guide explains how spouse super contributions work in Australia, who qualifies, how the $540 offset is calculated, how to claim it, and how this differs from contribution splitting.

This is an Australian superannuation strategy. It does not apply to overseas retirement systems.

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Key takeaways

• A spouse super contribution is an after tax contribution made directly into your spouse’s super.
• The maximum tax offset is $540 per year.
• The full offset applies when your spouse’s income is $37,000 or less.
• The offset reduces by $1 for every $1 your spouse earns above $37,000.
• The offset is not available once income reaches $40,000.
• Contribution splitting is different and does not qualify for the offset.
• The contribution counts towards your spouse’s non concessional contributions cap.

If you want to estimate your potential benefit, use the Spouse Super Contribution Calculator.

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What is a spouse super contribution?

A spouse super contribution is a contribution you make directly into your spouse’s super fund. It is treated as their non concessional contribution.

It is not salary sacrifice.
It is not deductible to you.
It is not a rollover.

It is simply an after tax payment into your spouse’s super.

In some cases, this allows you to claim a tax offset in your own tax return.

This applies to married and de facto couples who are Australian residents and not living separately and apart on a permanent basis.

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How the $540 tax offset works

The tax offset encourages couples to boost the super balance of the lower income spouse.

The maximum offset is $540 per year.

It is calculated as 18 percent of the lesser of:

• $3,000 minus the amount your spouse’s income exceeds $37,000, or
• The total spouse contributions you made during the income year.

Income thresholds

• If your spouse’s income is $37,000 or less, you may receive the full $540 offset.
• Between $37,000 and $40,000, the offset reduces dollar for dollar.
• At $40,000 or more, the offset is nil.

What counts as spouse income?

For this test, income includes:

• Assessable income, ignoring any amount released under the First Home Super Saver Scheme.
• Total reportable fringe benefits.
• Total reportable employer super contributions.

It is broader than taxable income. This is where people often miscalculate.

For the official wording, refer to the ATO guidance:

ATO spouse super contributions

Example: Full tax offset

Your spouse earns $30,000.

You contribute $3,000 into their super.

Their income is below $37,000, so you can claim 18 percent of $3,000.

That is $540.

If you contributed $2,000 instead, the offset would be 18 percent of $2,000, which is $360.

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Example: Partial tax offset

Your spouse earns $38,000.

They are $1,000 over the $37,000 threshold.

The eligible contribution amount reduces from $3,000 to $2,000.

18 percent of $2,000 equals $360.

That is your offset.

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Eligibility conditions

To qualify for the offset:

• The contribution must be made to a complying super fund or approved retirement savings account.
• Both you and your spouse must be Australian residents when the contribution is made.
• The contribution must not be deductible to you.
• You must not be living separately and apart on a permanent basis.
• Your spouse’s income must be below $40,000.
• Your spouse must not have exceeded their non concessional contributions cap.
• Your spouse’s total super balance must have been less than the general transfer balance cap immediately before the start of the income year.
• For 2020–21 and later income years, your spouse must be under 75 at the time the contribution is made.

If you want the full breakdown with explanations, see:
Spouse Super Contribution Eligibility Checklist

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How to claim the tax offset

You claim the offset in your own tax return.

In practical terms:

1. Make a direct after tax contribution into your spouse’s super.
2. Keep confirmation from the fund showing the amount and date.
3. Lodge your tax return and complete label T3 Superannuation contributions on behalf of your spouse.

You cannot claim the offset for contributions that were first made to your own super and then split. A split is a rollover, not a new contribution.

For a detailed step by step guide, see:
Spouse Super Tax Offset: How to Claim It

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Spouse contributions vs contribution splitting

These are different strategies. They solve different problems.

If you want a detailed comparison, read:
Spouse Super Contributions vs Contribution Splitting

And for the full mechanics of splitting, see:
Contribution Splitting Explained

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Common mistakes

• Confusing contribution splitting with a spouse contribution.
• Using taxable income instead of the correct income definition.
• Assuming the offset applies automatically without checking caps.
• Forgetting that the contribution must not be deductible.

I see this misunderstood regularly. The rules are clear, but small details matter.

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Is a spouse super contribution worth it?

If your spouse earns less than $40,000 and you have spare cash flow, it can be attractive.

You receive up to $540 as a tax offset. At the same time, you build the super balance of the lower income spouse.

It can also help even out super balances between partners over time.

But it is not automatic.

It uses cash flow.
It counts towards your spouse’s non concessional cap.
The benefit is capped.

Like most super strategies, the rule is simple. The decision depends on your broader position.

If you want to run the numbers first, start here:
Spouse Super Contribution Calculator

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FAQs

How much is the spouse super contribution tax offset?

The maximum tax offset is $540 per year. It is calculated as 18% of up to $3,000 of eligible spouse contributions, subject to your spouse's income thresholds.

What income threshold applies to the spouse tax offset?

The full offset applies if your spouse’s income is $37,000 or less. It phases out between $37,000 and $40,000 and is not available once their income reaches $40,000.

Can I claim the offset if I split my own super contributions?

No. Contributions that are split from your own super to your spouse are treated as a rollover and do not qualify for the spouse tax offset.

Does a spouse contribution count towards contribution caps?

Yes. A spouse super contribution counts towards your spouse’s non-concessional contributions cap for the income year in which it is made.

Does my spouse need to meet a work test?

For 2020–21 and later income years, your spouse must be under 75 at the time the contribution is made. The spouse contribution itself is treated as a non-concessional contribution.