If you have read some of the other topics on the concessions allowed in respect of superannuation, you will be aware that governments of all persuasions have been sweating on the imminent onslaught of baby boomers on the nation's social security system for the aged. (Baby boomers are people born in the years following the Second World War)

The general solution is to stop them getting the government age pension by encouraging them to provide for their own retirement years through contributing to superannuation funds.

This rebate allows spouses to gain a rebate for 18% of contributions up to $3000 to

for their low income or non working spouses.

The rebate is allowed in full if the spouse taxable income is $10,800.

For every $1 of taxable income in excess of $10,800 you deduct $1 from the $3,000 maximum contribution which can be claimed.

So if the spouse taxable income exceeds $13,800, no rebate will be allowed.

A taxpayer who makes

can claim the rebate under section 159T of the 1936 Income Tax Assessment Act.

18% of the contributions, up to a maximum of $3,000

(This maximum is reduced by $1 for each $1 by which the spouse taxable income exceeds $10,800.)

For further details refer paragraph 8-960 of the CCH Master Tax Guide.