Did you know you can split superannuation contributions with your spouse?
Splitting superannuation contributions with your spouse helps to increase retirement savings in your spouse’s name. It allows for low income earning partners to increase their superannuation amount and protect them from legislative changes.
What are the benefits?
- Your Centrelink entitlements may increase if the age of your spouse is under age 66 (or under age 60 if a veteran). This may be because exemptions on assessment of superannuation
- Your spouse’s retirement benefits will increase.
- You may be able to access retirement savings earlier if your spouse meets a condition of release before you
- The increased superannuation balance can help your spouse cover insurance premium costs if insurance is inside their superannuation
It is important to note what contributions can not be split such as:
- Personal contributions that you can't claim a deduction for
- Contributions you make with a capital gains tax (CGT) cap election for small business
- Other allocations from reserves
- Contributions you make with a personal injury election
- Contributions made by your spouse to your super
- First home super saver scheme contributions
- Transfers from foreign funds
- Trustee contributions
- Contributions that have already been split
- Government low income super tax offset contribution
- Temporary resident contributions
- Downsizer contributions
- Contributions made for you if you are under 18 years old (unless made by your employer)
- Rollover super benefit
- Government co-contributions
- A super interest that is subject to a payment split (due to a relationship breakdown).
How does it work?
Super splitting lets you transfer some of your previous years concessional contributions to your spouse. Not all super funds offer super splitting, so you will need to check with your fund If they will allow you to split your contributions.
IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.