Contribution splitting allows you to transfer a portion of the contributions made to your super account into your spouse’s super account.
Up to 85% of before-tax contributions can be split into a partner’s super account (in the same fund, or a different fund) following the end of the financial year in which the contributions were made. However, in some circumstances, contributions may need to be split in the same year they’re made.
There are many reasons why this could be a consideration for you. Some examples could include :
- Super splitting can transfer benefits to an older spouse who may later be able to draw upon tax-free super lump sums from age 60 or commence a tax-effective income stream sooner.
- An individual cap/limit between applies to the commencement of tax effective superannuation retirement income streams. By super splitting, both members of the couple may effectively use their caps allowing more money to be invested in tax effective superannuation retirement income streams.
- If one of you has substantially more super, you may not be able to access the Age Pension. By splitting super with your partner and reducing your super, you may be able to access more Age Pension once you retire.
There are many other options and considerations. To find out more how this works, and if it could be suitable for you, contact a Financial Planner at Experien Financial Services.
This is general information. Each person has different needs so contact us today to find out more and to see how it may apply to you.
Click here to get in touch to book a free introductory consultation. Or contact us on 1300 417 020.
Life insurance and Financial Advice services are provided by Experien Insurance Services Pty Ltd (EIS) ABN 99 128 678 937 and Experien Financial Services Pty Ltd (EFS) ABN 32 631 346 757. EIS and EFS are a Corporate Authorised Representative (No. 320626 and No. 1274354) of Affinia Financial Advisers Limited ABN 13 085 335 397 AFSL No. 237857.
