A spouse contribution split allows you to transfer a portion of the concessional contributions you recently made to your super account, to your spouse’s super account.
Advantages of performing a spouse contribution split:
- You may have the ability to access your accumulated superannuation capital earlier than would be allowable if retained in the current account. This may provide the earlier capacity to access the funds to repay debt or convert to a pension account.
- Splitting funds to your spouse will increase your capacity to take advantage of your individual pension transfer balance caps.
- The split amount does not count towards the concessional or non-concessional contribution cap of the receiving spouse.
Limitations of performing a spouse contribution split:
- The level of contributions you can split to your spouse is limited to 85% of your previous year’s concessional contributions (e.g. superannuation guarantee, salary sacrifice and personal concessional contributions) to a maximum of 85% of the annual concessional contribution cap.
- The receiving spouse must not be over the age of 65, or aged between preservation age and 65 and ‘retired’.
- You are only permitted to perform one contribution split per financial year.