From 1 July 2017, the spouse's income threshold will increase to $40,000. The current 18% tax offset of up to $540 will remain and will be available for any individual, whether married or de facto, contributing to a recipient spouse whose income is up to $40,000. As is currently the case, the offset gradually reduces for incomes above $37,000 and completely phases out at incomes above $40,000.
Individuals will not be entitled to the tax offset when:
- the spouse receiving the contribution has exceeded their non-concessional contributions cap for the relevant year, or
- the spouse has a total superannuation balance equal to or more than the general transfer balance cap ($1.6 million for 2017–18) immediately before the start of the financial year in which the contribution was made.