Spouse Tax Offset Changes

By February 15, 2018Financial Planning

This is not new legislation, but there has been a significant improvement to the Offset eligibility.

2017/18 is the first financial year for the new increased income thresholds that apply to the spouse contributions tax offset. Previously, clients could claim a tax offset of up to $540 on super contributions of up to $3,000 they made on behalf of their spouse, whose income was less than $10,800 pa. This income threshold has increased to $37,000 pa effective 1 July 2017. The offset is gradually reduced for income above this level and completely phases out at an income above $40,000 pa.

It is likely that many more of our clients will be eligible for this excellent tax break in the current financial year.