Contributions splitting enables you to share your super with your spouse* now, as you save, rather than waiting until you are about to retire.
How does it work?
Eligible contributions made to an accumulation account can be split with your spouse, with the transfer of funds made annually after the end of the financial year in which the contributions were made.
Splits can be made to a spouse’s account within the same super fund (such as a TelstraSuper Personal Plus account), or to another super fund or retirement savings account you nominate.
Amounts split to a spouse’s account are preserved on entry to the receiving account.
You can only apply to split contributions made in the current financial year if you are exiting the fund or rolling over your entire benefit to another fund.
Who can split contributions?
You are eligible to split contributions with your spouse, on the condition that you and your spouse are living together. To be eligible for contributions splitting, your spouse must be under 65 years of age, even if they are still working. If your spouse is over their preservation age, they must declare they have not retired in order to receive contributions from your account.
If your spouse does not work for Telstra they are still welcome to join TelstraSuper. For more information on the Personal Plus membership please read the TelstraSuper Personal Plus Product Disclosure Statement.
Which super contributions can be split?
You and your spouse can choose to split employer Superannuation Guarantee (SG) contributions and pre-tax (salary sacrifice) contributions. You can split any amount less the 15% contributions tax payable, so effectively you can split up to 85% of these gross contributions.
Which super contributions cannot be split?
The following types of contributions cannot be split between spouses:
- Employment Termination Payments (ETPs)
- Post-tax contributions
- Amounts that have been rolled over, transferred or allocated from a previous fund
- Lump sum payments such as those from an overseas fund
- Contributions made prior to 1 January 2006
Contributions splitting can only be applied to accumulation super arrangements. If you are a member of a defined benefit arrangement and have a Voluntary Accumulation Account (VAA), contributions splitting can be applied to your VAA only. If your benefit is subject to a family law split, you cannot apply for contributions splitting.
How do I arrange to split contributions?
You can request contributions to be split once each year after 30 June. For example, to request a split for contributions relating to the current financial year, requests can be made from 1 July the following financial year.
To arrange a split to your spouse’s account, you will need to complete a Contributions Splitting application form.
Once we receive your completed form, your contributions split request will be actioned within 90 days and you will receive a letter confirming your contributions transfer. If your spouse wishes to split their contributions from another super fund into your TelstraSuper account, your spouse will need to arrange this through their super fund.
Need help boosting your super?
At TelstraSuper we’re here to help you build a secure financial future. TelstraSuper Financial Planning has a team of phone based Advisers who can provide you with simple advice to help you get your super on track. If you’d like to discuss growing your super or if you have any other financial advice queries contact us on 1300 033 166 or fill in our online contact form. There's no additional cost for our phone based advice as this is included in your TelstraSuper membership.
*An eligible spouse must be someone you are presently in a relationship with and with whom you live on a genuine domestic basis as a couple. Other conditions apply. For the purposes of contributions splitting, your spouse must be under 65 years of age, even if they are still working. If your spouse is over their preservation age, they must declare they have not retired in order to receive contributions from your account.