You can split up to 85% of your employer and salary sacrifice contributions and transfer it to your spouse’s super account, as long your spouse is:

• younger than their preservation age, or
• between their preservation age and 65 years old and still working.

You can’t split your contributions if your spouse if over 65.

Some of the benefits of contribution splitting include:

• increasing your partner’s super
• having earlier access to your super if your spouse is older than you, or
• if your spouse is younger than you, you may qualify for a higher Age Pension under the assets test.

Split contributions can’t be accessed until the receiving spouse has reached their preservation age.

How contribution splitting works

Every year you can split the pre-tax contributions (such as your employer’s Superannuation Guarantee or your salary sacrifice contributions) made into your account. You simply need to fill in the Member and Spouse Contribution form.

You can only split contributions made in the previous financial year. You can’t split contributions from more than one year ago. For example, if you made contributions between 1 July 2016 and 30 June 2017, you need to make your application for a split by 30 June 2018 (i.e. the end of the 2017/18 financial year).

There are limits on the amount of contributions you can make into super. So, it’s important to remember that any contributions you make to your spouse’s account under a contributions splitting arrangement are counted as part of your contributions limit - not your spouse’s limits. If you exceed the contributions limits, an excess contributions tax may apply.

Contributions that can be split

Only before-tax (employer and salary sacrifice) contributions can be split – you cannot split after-tax contributions.

Other ways to grow your spouse’s super

You can also make contributions directly into your spouse’s account. And, if your spouse earns below a certain amount, you may get a tax rebate of up to $540 for the contribution.

Find out more about spouse contributions

Whether you should split your super contribution or make contributions into your partner’s account is a personal thing, but TelstraSuper Financial Planning can help you work out if you and your spouse could benefit from either of these strategies. You can speak to an Adviser by calling 1300 033 166 or fill in the online form to have someone call you back.

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