If your partner earns less than you — perhaps they work part-time, run the household, or are taking time out for kids — the ATO has a genuine incentive to help them build retirement savings. Make an after-tax contribution to your spouse’s super and you could claim a tax offset of up to $540 on your own tax return for 2025–26.
Unlike a tax deduction, which only reduces your taxable income, a tax offset reduces the actual tax you owe — dollar for dollar. That makes the spouse contribution tax offset one of the most generous little-used tax breaks in the Australian system, and it’s designed specifically for households where one partner earns significantly less than the other.
In this guide we’ll explain exactly how the $540 offset works, who qualifies, the income thresholds that matter, how to calculate your offset, and how to claim it in your tax return.
How the Spouse Super Tax Offset Works
The spouse contribution tax offset lets you claim up to $540 in your 2025–26 tax return when you make an eligible contribution to your spouse’s super fund. The offset is calculated as 18% of the first $3,000 you contribute, which is where the $540 maximum comes from (18% × $3,000 = $540).
Here is the exact formula the ATO uses:
Offset = 18% × the lesser of:
- $3,000, reduced by $1 for every $1 your spouse’s income exceeds $37,000; and
- the total amount of your contributions for your spouse during the year.
The effect of the formula is simple: you get the full $540 when your spouse earns $37,000 or less and you contribute at least $3,000. The offset then tapers away and cuts out completely once your spouse’s income reaches $40,000.
To put this in perspective: if your marginal tax rate is 30%, a $540 tax offset is worth the same as an $1,800 deduction — so the offset delivers real, measurable value off your final tax bill, not just a reduction in taxable income.
Spouse Income Thresholds: Full, Partial and No Offset
Your spouse’s income determines whether you receive the full offset, a partial offset, or nothing at all. The ATO’s definition of income for this purpose is broader than salary alone — it includes assessable income plus reportable fringe benefits and reportable super contributions. So if your partner salary-sacrifices into super or receives a company car, those amounts count toward the threshold.
| Spouse’s income (2025–26) | Maximum offset available | How it’s calculated |
|---|---|---|
| $0 – $37,000 | $540 | 18% × $3,000 (contribute at least $3,000) |
| $37,500 | $450 | 18% × ($3,000 − $500) |
| $38,000 | $360 | 18% × ($3,000 − $1,000) |
| $38,500 | $270 | 18% × ($3,000 − $1,500) |
| $39,000 | $180 | 18% × ($3,000 − $2,000) |
| $39,500 | $90 | 18% × ($3,000 − $2,500) |
| $40,000 or more | $0 | Offset cuts out entirely |
Let’s run through two real examples to show how the calculation works in practice.
Example 1: Full $540 offset
James earns $95,000 a year and his wife Mia earns $34,000 working part-time. James contributes $5,000 from his own bank account directly into Mia’s super fund. The offset is 18% of the lesser of:
- $3,000, reduced by $1 for every $1 that Mia’s income exceeds $37,000 → 18% × $3,000 = $540; and
- the total contribution of $5,000 → 18% × $5,000 = $900.
The lesser amount is $540, so James claims a $540 tax offset. Note that contributing $5,000 doesn’t increase the offset — $3,000 is the cap the offset is calculated on.
Example 2: Partial offset
Sarah earns $72,000 and her husband Tom earns $38,200. Sarah contributes $3,000 to Tom’s super. The offset is 18% of the lesser of:
- $3,000 reduced by $1,200 (the amount Tom’s income exceeds $37,000) → 18% × $1,800 = $324; and
- the total contribution of $3,000 → 18% × $3,000 = $540.
The lesser amount is $324, so Sarah claims a $324 tax offset.
Eligibility: The Conditions You Must Meet
To claim the offset for the 2025–26 income year, every one of the following conditions must hold:
- A genuine spouse relationship: your partner is your legally married husband or wife, or your de facto partner (including same-sex couples). You must not be living separately and apart on a permanent basis.
- Complying fund or RSA: the contribution must go to your spouse’s complying super fund or an approved retirement savings account (RSA).
- Australian residents: both you and your spouse must be Australian residents for tax purposes when the contribution is made.
- Not tax-deductible: you must not claim a tax deduction for the contribution yourself. This is one of the most common mistakes — you can have the offset or a deduction, never both on the same dollars.
- Spouse under 75: your spouse must be under 75 years old when the contribution is made.
- Income below $40,000: your spouse’s income (including reportable fringe benefits and reportable super contributions) must be under $40,000 for the year.
- Total super balance cap: your spouse’s total super balance must be below the general transfer balance cap of $2 million at 30 June 2025 (the previous financial year).
Importantly, the contribution counts toward the receiving spouse’s non-concessional (after-tax) contributions cap, which is $120,000 for 2025–26. If your spouse has already contributed up to their cap through personal after-tax contributions, a further contribution could trigger excess contributions tax — check their cap position before contributing.
You also cannot claim the offset for amounts you split from your own super to your spouse’s fund. A contribution split is treated as a rollover, not a contribution — the offset is only available for a genuine new payment from your own money into their fund. (For how contributions splitting works and when it might suit you, see the ATO’s guidance on spouse super contributions.)
Why Consider It: Beyond the $540
The tax offset is the immediate reward, but the strategy has bigger-picture benefits worth thinking about:
- Closing the super gender gap: women retire with significantly less super than men in Australia, largely due to time out of the workforce. Spouse contributions are one of the simplest tools to even things out.
- Compounding growth: a $3,000 contribution made in your 30s or 40s has decades to compound. Use a super calculator to model what an extra $3,000 now could be worth at retirement.
- Two sets of low-rate tax caps: building balances in both names gives your household access to two transfer balance caps and two sets of tax-free withdrawal rules in retirement, rather than concentrating everything in one account.
- No cost to the receiving spouse: your partner’s non-concessional cap absorbs the contribution, so it doesn’t affect their ability to receive employer super guarantee contributions.
If your household’s total income is on the lower side, also check the government co-contribution: if your spouse makes a $1,000 personal after-tax contribution to their own super and earns under the co-contribution threshold, the government may add up to $500 to their account — and the two strategies can work alongside each other in different years.
How to Make the Contribution and Claim the Offset
The process is straightforward and entirely done through your fund and your tax return:
- Choose the amount and timing: decide how much to contribute (up to $3,000 for the offset, or more for pure retirement benefit) and make it before 30 June to count for this financial year.
- Pay it as a spouse contribution: log in to your spouse’s super fund and make a “spouse contribution” — not a personal contribution in your own name. Most funds let you BPAY or transfer funds with a spouse contribution reference, or you can complete a spouse contribution form.
- Keep the receipt: the fund will confirm the contribution. Keep records showing the amount, date, and that it was made as a spouse contribution.
- Don’t claim a deduction: if you lodge a notice of intent to claim a tax deduction for the contribution, you cannot also claim the offset. Leave the deduction unclaimed.
- Claim in your tax return: declare the contributions and claim the offset at the relevant label in your individual tax return (the spouse contributions offset section). Your accountant or tax software will walk you through it — the ATO details how to claim in its superannuation-related tax offsets guide.
The ATO will calculate and apply the offset automatically once you’ve declared the contribution correctly — you don’t need to apply separately.
Spouse Contributions vs Other Super Strategies
| Strategy | Tax benefit | Best for |
|---|---|---|
| Spouse contribution offset | Up to $540 offset on your tax return | Households where the receiving spouse earns under $40,000 |
| Contribution splitting | Moves up to 85% of your concessional contributions to your spouse | Equalising balances without using after-tax money |
| Personal deductible contributions | Tax deduction at your marginal rate | When your own taxable income is high |
| Government co-contribution | Up to $500 paid into your spouse’s super by the government | Spouse makes their own $1,000 after-tax contribution on low income |
Each strategy has its place. If you’re unsure how a spouse contribution fits your broader super picture — for example, how much extra super you should be holding to meet your retirement target — run the numbers through a super calculator first and consider speaking with a licensed financial adviser.
Frequently Asked Questions
Can I claim the offset if my spouse earns exactly $37,000?
Yes. The full $540 offset is available when your spouse earns $37,000 or less, provided you contribute at least $3,000. The taper only begins above $37,000, and the offset disappears once their income reaches $40,000.
Do we need to be legally married?
No. “Spouse” for this purpose includes a de facto partner (including same-sex couples) living with you on a genuine domestic basis. What disqualifies you is living separately and apart on a permanent basis.
Can I contribute more than $3,000?
Absolutely. The $3,000 figure is only the amount the offset is calculated on — any extra you contribute won’t increase the offset, but it still goes into your spouse’s super and still compounds. Just remember it counts toward their $120,000 annual non-concessional cap.
Can I claim both the offset and a tax deduction for the same contribution?
No. This is the most common misunderstanding. A contribution is either non-concessional (eligible for the offset) or deductible (claimed as a personal deduction) — never both. For most people on higher marginal rates with a low-income spouse, the offset is the better choice, but run both scenarios before deciding.
What happens if my spouse’s income goes above $40,000 after I contribute?
The offset is based on your spouse’s total income for the full income year. If they end up earning $40,000 or more for the year, you won’t qualify for the offset at all — even if you contributed while they were earning less. If income is borderline, it may be safer to contribute later in the financial year when their earnings are clearer.
Does my spouse’s total super balance matter?
Yes. If your spouse’s total super balance was $2 million or more at 30 June 2025, you cannot claim the offset for 2025–26 contributions, regardless of their income. This affects very few people, but it pays to check if your household has large balances.
Bottom Line
The spouse super contribution tax offset is one of the few genuinely win-win tax breaks in Australia: you get up to $540 off your tax bill, and your partner gets up to $3,000 more in their super to grow for retirement. If your spouse earns $37,000 or less and meets the eligibility conditions, it’s very hard to find a better use of $3,000 before 30 June.
Model the long-term impact with a super calculator to see what that contribution could become by retirement — and make the contribution as a designated spouse contribution so the ATO treats it correctly at tax time.