These two tax time moves could net you an extra $1040

We’ve just waved goodbye to the first week of June, which means you have about two weeks to make two financial moves that could net you a free $500 in your super or a $540 discount on your tax. Or both.

I’m talking about big opportunities for lower earners, one called the super co-contribution and the other, for those who have one, the spouse contribution.

Both require you to pay money but the payback for doing so is significant. Let’s start with the giveaway requiring the least money: the super co-contribution. This is a free up to $500 paid into your super from the federal government.

The two triggers to receive it are a $1000 after-tax contribution and an income of less than $62,488. You get the full $500 if your income is below $47,488, after which it phases down until it disappears at $62,488 (in the 2025-26 tax year).

You also need to be working in some capacity to qualify for this one: 10 per cent or more of your income must come from employment (full-time, part-time or casual) or helping run a business (self-employment or contracting with an ABN).

And note the payment has to come from you – I’ve had many people ask me why the government top-up never landed in their account and usually, it’s because a spouse or family member has paid the money in on their behalf.

But yes, make it right and the co-contribution is paid automatically after the end of the tax year.

Which brings us to the spouse contribution. This is again for an after-tax contribution, but here you get a benefit for paying in as much as $3000. Let’s not miss, either, that you get to keep extra super contributions – and over time they can dramatically swell your super.

It’s also possible that your family can take advantage of both the co-contribution and a spouse contribution, giving your ‘fun fund’ a double boost. But I’ll come back to that.

A full $3000 contribution for a spouse earning less than $37,000 will net the payer a $540 tax offset. This is a big saving because it’s not a tax deduction but a tax discount. The offset phases down from $540 to zero by the time income hits $40,000.

There are just two final eligibility requirements for both spouse and co-contribution super perks, possibly not difficult ones.

Firstly, you – or your spouse in the case of the spouse contribution – must have had a super balance of less than $2 million on June 30 of the previous tax year (what’s called the general transfer balance cap).

Secondly, you – or your spouse – must not have exceeded the non-concessional (after tax) contributions limit for the year. That’s $120,000 this year and $1