Extending the Spouse Tax Offset

Budget measure

Our understanding

From 1 July 2017, the income threshold to claim a tax offset on spouse contributions will be increased from $10,800 to $37,000. This allows individuals to contribute up to $3,000 to their spouse’s super fund and be eligible for an 18% tax offset (up to $540) if their spouse’s income is less than $37,000. The eligibility for this offset tapers off and cuts out completely at income above $40,000.