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Re: Spouse contribution and tax offset eligiblity

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One of the elibility criteria for the Spouse Contribution ($3000 non-concessional for $540 offset) is that the receiving spouse has not "exceeded their non-concessional contribution cap". However, can the receiving spouse have exceeded the annual cap by triggering the 'bring-forward' arrangement with non-concessional contributions (NCCs) and also receive an eligible spouse contribution?

e.g. In 2019-20, if no other NCCs are made can I make a NCC of $294,000 as a spouse contribution and claim the offset?

Can I also contribute $3000 in 2020-21 and $3000 in 2021-22 and claim the offset in those years too? 

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Devotee Registered Tax Practitioner

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yes, provided all the other conditions are met.

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Devotee Registered Tax Practitioner

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yes, provided all the other conditions are met.

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Hi @James71

 

Thanks for your question.

 

@Bruce4Tax is correct. In addition to Bruce's point about meeting all of the other conditions, it is important to note that due to how the bring-forward arrangement now works, it isn't a given that your spouse's non-concessional contributions cap will be $300,000.

 

Your spouse's eligibility for the bring-forward arrangement depends on a number of things including their age and their total super balance at the end of 30 June of the previous financial year.

 

For example, depending on their circumstances, rather than having a bring-forward period of three years they may only be eligible for a two year period. In turn, their non-concessional cap would only be $200,000.

 

You can read more about how the non-concessional contribution bring-forward arrangements work by checking out our website.

 

Hope this helps.

 

Thanks, ChrisR