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Super: Questions regarding co-contribution and spouse contributions

Super: Questions regarding co-contribution and spouse contributions

Old Apr 18th 2011, 1:21 am
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Default Super: Questions regarding co-contribution and spouse contributions

I am looking for some ways to optimize my (non-working) wife's super .
I am aware that I can do a spouse contribution which will allow me to claim a rebate of up to 540$.
My confusion starts with co-contribution:
- if i pay 3000 AUD to my wife's super account, does the money meets the requirements for co-contribution (or does my wife has to pay 1000 or more AUD in her name)?
- Apparently there is a eligible test for the co-contribution (10% or more of my wife's total income has to come from eligible employment). At the moment she only earns some (limited) money from some saving accounts. Does this mean that stay-home moms who do not work at all, are not eligible?

Thanks for your help,
Jan
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Old Apr 18th 2011, 2:08 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

have a read of

http://www.equipsuper.com.au/files/F...tributions.pdf

and

http://www.equipsuper.com.au/files/F...tributions.pdf

And

http://www.equipsuper.com.au/files/G...ntribution.pdf
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Old Apr 18th 2011, 4:34 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

You can also do contribution splitting which basically takes money from your super and puts it in your wife's super.

There may be circumstances which make this worth doing; for example in my case my wife is older than me so can get her hands on the money about two years sooner, and she will not get past the tax free limit of $160k so she can take all the money out tax free when she comes to cash it in.
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Old Apr 18th 2011, 9:28 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

Originally Posted by killerhales
You can also do contribution splitting which basically takes money from your super and puts it in your wife's super.

There may be circumstances which make this worth doing; for example in my case my wife is older than me so can get her hands on the money about two years sooner, and she will not get past the tax free limit of $160k so she can take all the money out tax free when she comes to cash it in.
I did read somewhere, that in order to access her super at 60, she will have to satisfy a condition of release, such as retiring from work, and if she is not working this will not be met.

She may have to wait until she reaches the official retirement age of 65 soon to be 67.
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Old Apr 18th 2011, 9:44 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

Originally Posted by detritus
I am looking for some ways to optimize my (non-working) wife's super .
I am aware that I can do a spouse contribution which will allow me to claim a rebate of up to 540$.
My confusion starts with co-contribution:
- if i pay 3000 AUD to my wife's super account, does the money meets the requirements for co-contribution (or does my wife has to pay 1000 or more AUD in her name)?
- Apparently there is a eligible test for the co-contribution (10% or more of my wife's total income has to come from eligible employment). At the moment she only earns some (limited) money from some saving accounts. Does this mean that stay-home moms who do not work at all, are not eligible?

Thanks for your help,
Jan
There is no problem with you paying a co-contribution of $3000 into her Super, and you will get the 540$.

But as for the 10% eligibility test for your wife (wife not working) if she pays the $1000 as a personal contribution she will not, unfortunately be entitled to the low income bonus.

Hope that helps
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Old Apr 18th 2011, 10:55 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

Originally Posted by cat5
I did read somewhere, that in order to access her super at 60, she will have to satisfy a condition of release, such as retiring from work, and if she is not working this will not be met.

She may have to wait until she reaches the official retirement age of 65 soon to be 67.
If shes not working from the age of 55 she can start withdrawing from super. You don't have to retire 'from an occupation' you just have to be willing to declare you're not working and don't intend to work again.
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Old Apr 18th 2011, 11:05 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

Originally Posted by cat5
I did read somewhere, that in order to access her super at 60, she will have to satisfy a condition of release, such as retiring from work, and if she is not working this will not be met.

She may have to wait until she reaches the official retirement age of 65 soon to be 67.
She can access 10% per year at either 55 or 60 depending on her age as part of a pre-retirement pension

Unless spending the funds or paying debts this may not be the best thing to do tho
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Old Apr 19th 2011, 8:01 am
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Default Re: Super: Questions regarding co-contribution and spouse contributions

Originally Posted by LouiseR
If shes not working from the age of 55 she can start withdrawing from super. You don't have to retire 'from an occupation' you just have to be willing to declare you're not working and don't intend to work again.
Originally Posted by llanfachreth
She can access 10% per year at either 55 or 60 depending on her age as part of a pre-retirement pension

Unless spending the funds or paying debts this may not be the best thing to do tho
Thanks for the useful info, i did not realize this!

Cheers
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