Q My husband who turned 65 last year, and I are both still working. Before he turned 65 he contributed the maximum allowed non-concessional contribution into his Superannuation fund. We understand he is not permitted to make any further NC payments because of his age.
I turn 65 in early 2016. Is it permissible for my husband to give me $100,000 which I could then contribute as a non-concessional payment into Superannuation before I turn 65 (assuming that I too do not exceed the maximum allowed transfer)?
A The annual limit for Non-Concessional Contributions to Superannuation is $180,000 a year or $540,000 every 3 years if the member is under 65. I am assuming that your husband contributed a Non Concessional Contribution of $540,000. As he has subsequently turned 65, he would not be able to make any further Non-Concessional contributions until the 3 years has passed. So assuming he made the contribution after 1 July 2014, he would be eligible to contribute $180,000 from 1 July 2017 provided he satisfies the work test of working 40 hours in a 30 day period in the same Financial year prior to making the future contribution.
Your husband can give you the funds and you can contribute them to your fund. The normal Non-Concessional Contribution Caps apply of $180,000 a year or $540,000 every 3 years if the member is under 65. Beyond age 65, the work test would apply to the spouse receiving the contribution.
Your husband could also make a contribution on your behalf as a Spouse Contribution. The Spouse Contribution counts against the same Non-Concessional Contribution caps as if you had made the contribution yourself.
If your assessable income for tax purposes, including Fringe Benefits is $10,800 or less, your husband can claim a 18% rebate up to $540 for contributions he makes to your fund. Shade out provisions apply above income of $10,800 up to income of $13,800 where the rebate reverts to zero.
Non-Concessional Superannuation Contributions are made as after tax contributions to Super and therefore do not attract Contributions tax of 15%. Benefits are preserved until age 65 or another condition of release is met.