Eligibility to qualify for Spouse Rebate
You can make contributions on behalf of your spouse if your spouse is under 65 years of age or your spouse has reached 65 years of age but not reached 70 years of age , and worked at least 40 hours in a period of no more than 30 consecutive days during the financial year.
Before 1 July 2017
An 18% income tax rebate for contributions up to $3,000 per annum applies. The full rebate is available where the assessable income and reportable fringe benefits (RFB) of the spouse are below $10,800 pa. That is a maximum rebate of $540 pa. The rebate entitlement phases out gradually ($1 for $1 increase in income) as the recipient spouse's assessable income and RFB increase to $13,800 pa, above which no rebate will be available. The rebate is only available when both spouses are Australian residents for tax purposes.
After 1 July 2017
From 1 July 2017, the income threshold for the low income spouse tax offset will be increased from $10,800 to $37,000.
As is currently the case, the offset is gradually reduced for income above this level and completely phases out at income above $40,000.
No tax offset will be available when the spouse receiving the contribution has exceeded their non-concessional contributions cap or their balance at 30 June of the previous financial year is $1.6 million or more.
No Form to Complete
There is no form to complete or lodge with the ATO to claim the Spouse Rebate. The Spouse Contribution simply needs to be declared when lodging the contributing Members personal tax return. The ATO will in turn assess the rebate and it will be paid when processing your individual tax return.