Clever EOFY Super Moves for Couples and Low-Income Earners

June 30 is fast approaching, which means your social feed is probably full of End of Financial Year (EOFY) sales. But if you want a return on your money that outlasts a new TV, the most rewarding “sale” running right now is inside your superannuation account.

The Australian government offers free money injections and tax breaks if you top up your super before June 30. If you are a middle-to-low-income earner, or if your household has a single income or a big gap between partner salaries, three major super strategies could earn you up to $1,040 in direct bonuses and offsets.

Here is how to get the government and the tax office to pay into your nest egg this month.

1. The Spouse Contribution Tax Offset: Up to $540 Back

If your husband, wife, or de facto partner takes time out of the workforce, works part-time, or earns a lower salary, their super balance shouldn’t have to stall. By topping up their account using your after-tax money, you can score a neat tax cut for yourself.

The Deal: If you contribute $3,000 into your spouse’s super account, you can claim an 18% tax offset, which translates to a direct $540 reduction in the tax you owe when you lodge your return.

How the thresholds work this financial year:

• To get the full $540 offset: Your spouse’s total income must be $37,000 or less, and you must contribute at least $3,000.
• To get a partial offset: If your spouse earns between $37,001 and $39,999, the $3,000 limit reduces dollar-for-dollar. Once their income hits $40,000, the offset drops to zero.

Note: Make sure you explicitly tell their super fund this is a “spouse contribution” so it’s logged correctly for tax time!

2. The Government Co-Contribution: A Free $500 Top-Up

If you are a low-to-middle income earner and add some of your own savings to your super, the government will reward you with an extra cash injection. Think of it as a 50% guaranteed return on your investment.

The Deal: Put $1,000 of after-tax cash into your own super account, and the government will match it with a $500 co-contribution.

How the thresholds work this financial year:

• The Full $500: Available if your total income is $47,488 or less.
• The Tapered Bonus: If you earn between $47,489 and $62,488, your maximum bonus gradually decreases.
• The Cut-off: If your income hits $62,488 or more, you are no longer eligible for the co-contribution.

The Golden Rule: You must not claim a tax deduction on this $1,000 contribution. It needs to remain an after-tax (non-concessional) contribution for the matching system to trigger. The ATO handles this automatically after you file your tax return.

3. LISTO (Low Income Super Tax Offset): Your 15% Tax Refund

Superannuation is generally a low-tax environment, but employer contributions (and salary sacrifice) are still hit with a standard 15% contributions tax on the way into your account. For low-income earners, this means you are barely paying less tax on your super than you do on your standard income.

That is where LISTO steps in to level the playing field.

The Deal: If you earn $37,000 or less, the government will refund that 15% tax right back into your account, up to a maximum of $500.

Unlike the other two strategies, you don’t have to do anything extra here. You don’t need to scrape together any spare cash to make a personal contribution. As long as your super fund has your Tax File Number (TFN), the ATO looks at your employer’s compulsory contributions when you lodge your tax return and drops the refund straight into your account automatically.

Summarizing Your EOFY Super Strategy

Summary of End of Year Super Strategies