The $540 is fine. But the real benefit is balance equalisation. Two $500,000 super balances beat one $1 million balance when it comes to Age Pension means testing, Transfer Balance Cap, and estate planning.
How the Tax Offset Works
You make an after-tax contribution to your spouse's super. Not salary sacrifice, not employer contributions. Your own after-tax money going into their account. At tax time, you claim an 18% offset on contributions up to $3,000. The offset caps at $540.
| Spouse's Income | Max Contribution for Offset | Max Tax Offset |
|---|---|---|
| $0 to $37,000 | $3,000 | $540 |
| $37,001 to $40,000 | Phases out | Phases out |
| $40,001+ | $0 | $0 |
The offset phases out between $37,000 and $40,000. If your spouse earns $38,000, you get a partial offset. If they earn $40,000 or more, you get nothing.
Example
Michael earns $120,000. Sarah works part-time earning $30,000. Michael contributes $3,000 to Sarah's super account.
Result: Michael claims $540 tax offset at tax time. Sarah's super increases by $3,000. The contribution counts toward Sarah's $120,000 non-concessional cap, not Michael's.
When Spouse Contributions Make Sense
Spouse contributions make sense when one partner earns significantly more than the other. Especially if the lower-earning partner has little super. The earlier you start, the bigger the compounding effect. This isn't revolutionary advice, it's just maths.
For a couple in their 40s or 50s with unequal super balances, $3,000 per year for 10 or 15 years makes a material difference to combined retirement outcomes. The $540 annual tax offset is a bonus. The real payoff is in retirement when your combined Age Pension entitlements and tax-free pension caps are optimised.
Contribution splitting vs spouse contributions
Spouse contributions use after-tax money from your bank account. Contribution splitting is different: up to 85% of your concessional (employer or salary sacrifice) contributions can be redirected to your spouse's super each year. Splitting does not give you a tax offset, but it can equalise balances faster when one partner has much higher earnings.
Many couples use both tools at different life stages — splitting while working, then spouse contributions in the years before retirement when one partner has stopped work or has low income.
Eligibility checklist
- Spouse must be under 75 when the contribution is made
- Receiving spouse's income must be $37,000 or below for the full $540 tax offset (partial offset applies between $37,000 and $40,000)
- Contribution counts toward the receiving spouse's non-concessional cap
- Both partners must be Australian residents for tax purposes
Model the household outcome
The $540 offset is easy to understand. The harder question is whether equalising balances improves your combined sustainable retirement income and Age Pension over 25–30 years. That requires modelling both partners together — not two separate calculators.
Run your own numbers
Use SuperCalc Pro to test your retirement plan with Australian super, Age Pension rules, and historical market stress tests.
Open Advanced Retirement Calculator