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Contribution splitting allows you to transfer eligible contributions from your own Super Account to an account in the name of your spouse in a complying superannuation fund.

What is contribution splitting?

Contribution splitting lets you transfer up to 85% of your before-tax (employer and salary sacrifice) super contributions to your spouse’s account. It’s useful if:

  • You and your spouse have plans to access your super after your preservation age and before you turn 60
  • There are significant age differences between you and your spouse
  • You’re looking to top up your spouse’s super account or equalise the super between you and your spouse

Jackie and Gary Mercy Super members

Who can contributions be split with?

Contributions can only be split with an eligible spouse who has not permanently retired or reached age 65.

Your spouse is defined as someone:

  • who is legally married to you; or
  • with whom you live with on a genuine domestic basis in a relationship as a couple (including a same-sex partner); or
  • with whom you are in a registered relationship under a law of State or Territory (including a same-sex partner).

What contributions can be split?

You will generally be able to request a contributions split of up to 85% of concessional contributions made during the relevant financial year, provided you maintain a minimum balance of at least $8,000 to ensure your account remains open. Concessional contributions include your employer and salary sacrifice contributions, and any deductible contributions (i.e. contributions for which you have advised us that you will be claiming a tax deduction against).

This is subject to a maximum of the concessional contributions cap for that financial year. Find out more about the contributions cap here.

DID YOU KNOW? You can only split 85% of concessional contributions as the trustee must make an allowance for the deduction of the Government’s 15% contributions tax that applies to these contributions.

The following contributions cannot be split:

  • after-tax member contributions (excluding those for which you have advised us that you are claiming a tax deduction against), eligible spouse contributions, Government co-contributions, and any untaxed contributions
  • amounts rolled over or transferred into Mercy Super
  • lump sum payments from an overseas super fund
  • employment termination payments

There may be other circumstances in which the legislation restricts or prohibits contributions splitting depending on a member’s individual circumstances. We will advise you if this applies at the time you make a request to split contributions.

When can you request a contributions split?

The contributions splitting rules work on a financial year basis (i.e. year ending 30 June).

Splitting periods will comprise the twelve months from 1 July to 30 June each year. That means in general, you will be able to split once per financial year and will have twelve months to make a request to split all or part of a previous year’s contributions once that year is over.

Please note: We can explain the options, help set up an account for your spouse and our in-house financial advisers can provide advice on the best strategy based on you and your spouse’s own personal circumstances. To get more out of your super contact us on 1300 368 891.

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