Date of article: 2005
Last updated: N/A

Superannuation splitting between spouses now permitted

Contributions made to a superannuation fund (including Self Managed Superannuation Fund) or retirement savings account from 1 January 2006 can be split and transferred into a spouse's superannuation.

The superannuation contribution that can be split is not limited to just after-tax contributions. You can direct your 9% superannuation guarantee contributions your spouse's account as well as any salary sacrificed contributions.

Members can apply to their fund trustee at the end of the financial year to split some, or all, of the contributions made during the financial year and transfer them to their spouse's account. The spouse must be under the preservation age.

Splitting is limited to:

• 85 per cent of taxed contributions, such superannuation guarantee contributions and salary sacrifice contributions.
• 100 per cent of untaxed contributions, such as after-tax contributions.

If you are contemplating transferring or rolling over to another fund, the splitting should be done before the transfer or roll over. This is because amounts that have been transferred or rolled over cannot be split. The splitting can be requested during the financial year if transferring or rolling over to another fund.

Superannuation Accounting Services' Superannuation Trust Deed includes provisions to allow the Self Managed Superannuation Fund to offer superannuation splitting between spouses to its members.