What is splitting?
Superannuation contributions’ splitting allows individuals to transfer certain superannuation contributions to their spouse, if their spouse is eligible. The amount split will be a rollover and designated as a ‘spouse contribution – splitting amount’.
The spouse will not be eligible:
> if aged 65 or more
> between preservation age and 65 if they satisfy a condition of release
The maximum amount of contributions you can split to your spouse’s superannuation account for any financial year will depend upon the year in which the contributions are made to the superannuation fund or RSA.
The amount that can be split relates only to the contributions made in the previous financial year. It does not include contributions made prior to that unless the member is rolling over or cashing out in the current year. In that case current year’s contributions can be split as well.
Non –Concessional contributions and roll-overs cannot be split.
For contributions made from 1 July 2007, the following is the maximum amount of contributions you can split in a financial year:
> for taxed splittable contributions, the lesser of:
- 85% of the concessional contributions and
- the concessional contributions cap for that financial year; and
> for untaxed splittable employer contributions, 100% of the concessional contributions cap for that financial year.
For contributions made between 1 January 2006 and 30 June 2007, the maximum amount of contributions you could split in a financial year was:
> 85% of the taxed splittable contributions
> 100% of untaxed splittable contributions (this will not include contributions made after 5 April 2007 to a superannuation fund or after 30 April 2007 to an RSA); and
> 100% of untaxed splittable employer contributions.
You can ask to split contributions made to your fund each financial year. You can do this once for each financial year for each fund.
Refer to the links below for more information on eligibility, tax deductibility, making an application and the definition of spouse which changed from 1 July 2008 to include same sex relationships.