Maximising Super Contributions for Couples!

Did you know that in Australia, couples can supercharge their retirement savings by strategically managing spouse contributions?

Here’s how.

The Power of Spousal Super Contributions

Adding funds to your spouse's super account isn't just a super gesture – it can be a smart financial move! By contributing to your partner's super, you're boosting their retirement savings and potentially saving on taxes.

Optimal Times to Boost Spouse Contributions

Timing is key! If your partner earns less than $37,000, contributing to their super could lead to a tax offset of up to $540 for you. The tax offset cuts out when your partners income is above $40,000, so making contributions during lower-earning years is more effective.

Pros of Spouse Contributions

✅ Tax Benefits – The contributor gets the tax offset.

✅ Growing Together - Boost retirement funds for both of you.

✅ Flexible Contribution Limits - Contribute up to $3,000 per year to receive the full offset.

Cons to Consider

❗ Contribution Cap - Be mindful of the $3,000 cap to receive the tax offset. You can contribute more than $3,000 but only claim the tax advantage up to this figure.

❗ Future Changes - Tax laws can change, affecting the offset's availability.

How to Make Contributions

Making spouse contributions is easy, simply transfer funds from your bank account to your partner's super fund. You'll need their super fund details, which can usually be found on their statements or online account. It must be an after tax, non-concessional contribution, so be mindful of the non-concessional contribution cap.

In a nutshell, contributing to your spouse's super isn't just a super generous gesture – it can be a strategic move to secure your joint financial well-being.

Remember, not every strategy is suitable for every person. We always suggest getting professional and tailored advice from us before diving in.

Speak to the team at Hunter FP for more information on how we can help you with this or other financial strategies.

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