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6. Large Deductible Superannuation Contributions for Spouses
Large deductible superannuation contributions for spouses are a great tax planning strategy and one we have been implementing for many years.
This year we are paying attention to personal services income practices and making sure the spouse is a general law employee as well as a director of the practice company or the trustee company for the practice trust. Ideally this general law relationship should support a salary paid well before 30 June, with appropriate pay as you go withholding amounts deducted along the way.
Large deductible contributions for spouses is a very tax efficient planning strategy. This is particularly the case if coupled with gearing strategies and possibly spouse contribution splitting strategies.
Once again, it’s worth noting that the ATO accepts that large superannuation contributions for spouses are deductible even where the amount is well above market based rewards. The ATO’s views are expressed at Taxation Determination TD 2004/D82 .
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