Combining finances with a partner or buying your first home is exciting — but it also brings new tax opportunities and considerations. With careful planning, you can reduce your tax, make the most of government schemes, and protect your financial future as a couple.
Here’s what every couple and first home buyer should know.
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Spouse Super Contributions Can Earn You a Tax Offset
If your partner earns below the income threshold, making contributions to their super can earn you a tax offset of up to $540 per year. This is a simple way to boost your partner’s retirement savings while reducing your taxable income.
Hack: Even small contributions count. For example, contributing $3,000 to your partner’s super in one financial year could net you a significant tax benefit — and your partner gets a jumpstart on long-term savings.
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Structure Investments Strategically
How you hold investments as a couple can significantly impact your overall tax. Consider:
- Lower-earning partner: Placing income-generating investments in their name can reduce household tax liability
- Joint investments: Properly structured, joint ownership can optimise deductions and reduce tax on dividends or rental income
Hack: Don’t just assume equal ownership is best. Strategic structuring, especially in the early years, can save thousands over time. Consulting an accountant ensures compliance with ATO rules.
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Take Advantage of the First Home Super Saver Scheme (FHSSS)
The FHSSS lets you make voluntary contributions to super and later withdraw them for a first home deposit. The scheme comes with added tax benefits: contributions are taxed at 15% in super (generally lower than your marginal rate), helping you save more efficiently.
Hack: Plan contributions carefully — even modest amounts can accelerate your deposit savings. Start early, and you may reach your goal faster than expected.
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Consider Income Protection Insurance
If one or both partners rely on their income to meet living expenses or a mortgage, income protection insurance can safeguard finances if illness or injury prevents work. The best part? Premiums are generally tax-deductible.
Hack: Compare policies to ensure coverage fits your needs. Premiums you pay could reduce your taxable income, making this both a protective and tax-smart choice.
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Combine Finances Without Increasing Tax Burden
Merging bank accounts, expenses, or investments requires careful planning. A few tips:
- Keep track of whose income and deductions belong where
- Optimise super contributions and offsets individually and as a couple
- Plan large expenses (like property purchases) to reduce taxable income in the right financial year
Hack: Use budgeting tools or a simple spreadsheet to track contributions and deductions between partners. It keeps you organised and tax-efficient.
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Plan for Future Capital Gains and Property Ownership
If you’re buying your first home with the potential to invest later, consider:
- Holding periods: Owning assets long enough may qualify for CGT discounts in the future
- Ownership structure: Individual vs joint ownership can affect future taxation
- Property improvements: Keep records to distinguish repairs (immediately deductible) from improvements (depreciable over time)
Hack: Even if you’re focused on the first home, thinking ahead about investment potential can save thousands later.
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Keep Good Records from the Start
Organised records make all the difference. Keep:
- Receipts for super contributions, insurance, and work-related expenses
- Statements for joint accounts and shared investments
- Documentation for government benefits or offsets claimed
Hack: A dedicated folder, cloud storage, or accounting app simplifies tax time and ensures you don’t miss deductions or offsets.
The Bottom Line
Combining finances or buying your first home is an exciting time — but it’s also a chance to use tax strategies to your advantage. By contributing to super strategically, structuring investments wisely, claiming all eligible deductions, and keeping excellent records, you can reduce tax, protect your income, and build a strong financial foundation together.
At Lemonade Beach Accounting, we help couples and first home buyers navigate tax rules with confidence, maximise deductions, and plan for long-term wealth.
Ready to Plan Your Finances as a Couple?
Book a Tax Planning Appointment with Lemonade Beach today — we’ll help you optimise super contributions, investment structures, and deductions so you can step into your first home with confidence.
FAQs: Tax Planning for Couples and First Home Buyers in Australia
Can I get a tax benefit by contributing to my partner’s super?
Yes. If your partner earns below the income threshold, contributing to their super can earn you a spouse contribution tax offset of up to $540 per year, while boosting their retirement savings.
How should couples structure investments for tax purposes?
Often, placing income-generating investments in the lower-earning partner’s name can reduce overall household tax. However, joint ownership may be better in some cases. The right approach depends on your situation, so seek professional advice before deciding.
What is the First Home Super Saver Scheme (FHSSS)?
The FHSSS allows you to make voluntary contributions into your super, which you can later withdraw for a first home deposit. Since contributions are taxed at 15% in super (usually lower than your marginal rate), it’s a tax-efficient way to save.
Are income protection insurance premiums tax-deductible in Australia?
Yes. Premiums for income protection insurance are generally tax-deductible if the policy covers loss of income. This can help reduce your taxable income while protecting your financial security.
Do couples need to merge finances for tax purposes?
No, but careful planning helps. Each partner’s income and deductions are reported individually. However, combining financial strategies — like optimising super contributions or planning large expenses — can reduce overall tax as a household.
What should first home buyers know about future capital gains tax (CGT)?
If your first home later becomes an investment property, ownership structure, holding periods, and records of improvements will affect how CGT is calculated. Thinking ahead when purchasing can save significant tax in the future.
What records should couples and first home buyers keep for tax?
Maintain receipts for super contributions, insurance premiums, and work expenses, plus statements for joint accounts, investments, and government benefits. Good record-keeping makes it easier to claim all eligible deductions and offsets.
Want to see what tax strategies are right for the next stage of life? Check out our guide for Growing Families.
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