HOSTPLUS offers a spouse contributions facility which enables access to tax rebates. If you have a tax bill a tax rebate can reduce the amount you have to pay.
If you have a spouse who is a low income earner or doesn't work, then you can take advantage of the rebate. If you are a low income earner or don't work, then contributions made on your behalf may attract a rebate for your partner.
The two key benefits of spouse contributions are:
You can qualify for a tax rebate of up to $540 if your spouse has a low income or is not in paid employment, and
You can increase the amount of retirement income that you and your partner can build tax-free.
Who can make spouse contributions? A contributing spouse can make contributions to HOST
PLUS for their partner (married or de facto) as long as they are living together and are both Australian residents.
A de facto spouse is one who lives with the tax payer on a genuine domestic basis as the partner of the tax payer. Government regulations do not allow spouse contributions for same sex partners or couples living together.
You cannot make spouse contributions if you are your spouse's employer.
The receiving spouse must be under 70 years of age. If the receiving spouse is between age 65 and 70, they must work at least 10 hours per week. If under age 65, they do not need to work.
How do I make spouse contributions? A contributing spouse does not need to be a member of HOST
PLUS, however the receiving spouse does have to be a member of the fund. If the receiving spouse is not a member, then they will need to join the
Personal Super Plan. Contributions are made to the member’s account.
Contributions via cheque can be made at any time by submitting them with a deposit slip. Call
1300 HOST
PLUS (1300 467 875) to request a book of contribution slips.
The maximum rebate the contributing spouse can claim is 18% of up to $3,000 worth of spouse contributions ($540). This amount can be paid if the receiving spouse's assessable income, plus reportable fringe benefits total (if any), is $10,800 per year or less.
Every dollar of the receiving spouse's income over $10,800 per year reduces the value of the rebate. You are not eligible for the rebate if the receiving spouse's income, plus reportable fringe benefits total (if any), is more than $13,800 per year.
For example:
A contributing spouse pays $3,000 in spouse contributions. The assessable income plus reportable fringe benefits (if any) of the receiving spouse is $12,800.
To establish the taxable rebate, the contributing spouse needs to calculate the difference between the total income of the receiving spouse and the low income benchmark ($12,800 - $10,800 = $2,000), deduct such a difference from the spouse contributions paid ($3,000 - $2,000 = $1,000) and multiply this amount by 18% ($1,000 x 18% = $180). The contributing spouse will be entitled to a tax rebate of $180.
If you need more information on the rebate, contact the Australian Taxation Office (ATO) Superannuation Helpline on 13 10 20.
The contributing spouse's income does not affect the tax rebate – the contributing spouse is entitled to receive the rebate regardless of how much he or she earns.
Is there a limit on spouse contributions?
There is no limit on the amount you can contribute for a spouse, but there is a limit on the tax rebate you may be eligible to receive as detailed above. You may wish to speak to a professional financial adviser to decide on the appropriate level of spouse contributions to make. We can refer you to a licensed financial planner - please call
1300 HOST
PLUS (1300 467 875) or
click here for more information.
If you want more detailed information from HOSTPLUS about spouse contributions, or call 1300 HOSTPLUS (1300 467 875) or download a copy of the Spouse Contributions brochure (261KB).