SHARING YOUR SUPER CONTRIBUTIONS
Super 101 | Date Posted 28 October 2024
If you have a spouse, there’ll be lots of things you’re already sharing together. But did you know you can also share your super? You can potentially make your super work harder if you and your spouse join forces, by either boosting their super or using a strategy to split your contributions.
BOOST YOUR SPOUSE'S SUPER AND GET A TAX OFFSET
One of the easiest ways to boost your spouse’s super is by making a contribution to their account. If your spouse has a low income or isn't currently working, you can both benefit if you add money to their account. They'll be rewarded with a boost to their super and you’ll be able to get a tax offset of up to $540. Find out more on the Grow your spouse’s super page.
SPLIT YOUR CONTRIBUTIONS
The Government allows you to split any before-tax contributions you make to your super with your spouse each financial year. You can use this to access tax-free super sooner or increase Age Pension entitlements:
Splitting strategy 1: Access tax-free super sooner
If you and your spouse aren’t the same age, you can split your contributions. Once the older spouse turns age 60 they can withdraw these contributions tax-free or start a tax-effective account-based pension.
Splitting strategy 2: Increase Centrelink entitlements
If you and your spouse aren’t the same age, you can split your contributions to reduce the super balance of the older spouse. Once turned 67, this would lower their assets for the Centrelink means test and could increase their Age Pension entitlement (they also need to satisfy the income test).
NOTE: the younger spouse needs to be under government Age Pension age, as super isn’t counted under the means test for people under pension age.
SUPER SPLITTING FACTS
You can split 85% of before-tax contributions you made to your super in the previous financial year (the other 15% is deducted by the super fund in tax), provided the amount is under your before-tax contribution cap. This includes compulsory employer contributions and any extra before-tax contributions your employer makes for you, such as salary sacrifice contributions.
You can’t split after-tax contributions or your account balance and you can only make one split each year.
You can split your contributions with your spouse or de facto partner provided they’re under age 65 and not retired; or they’re under preservation age (working or retired).
We don’t charge any fees for super splitting.
Due to the tax breaks you receive when you put money into super, the Government limits how much you can deposit in any one year. These limits are called ‘contribution caps’. You can’t increase your contribution cap by splitting contributions.
For more information, read our Super contribution splitting strategies for couples factsheet.
TURN TO MINE
These are complex strategies, so consider speaking to a financial adviser before acting. The team at Mine Super Financial Advice can help check your eligibility and which strategies may suit your personal circumstances. Mine Super members are entitled to a complimentary appointment. And did you know? Personal advice on how your account is invested is at no extra cost, but there are fees associated with providing more complex personal financial advice. During your appointment your adviser will discuss the fees and how you’d like to proceed. You can request an appointment online or by contacting us.