any Superannuation splitting occurs when one partner in a relationship –
- transfers contributions made into their own superannuation account,
- to the superannuation account of their eligible partner.
It is allowable for a member to split superannuation contributions across to their spouse’s account. A spouse is a person living with another in a genuine domestic relationship as husband and wife. This definition includes de facto couples as well as same sex partners.
The rules relating to this strategy allow splitting 85 per cent of concessional contributions made to the account.
What disqualifies superannuation splitting activity?
Spouse contribution splitting does not apply to:
- Contributions rolled over or transferred from another fund,
- Defined benefit interests,
- Amounts subject to a super and divorce payment split or payment flag,
- Employer ETPs, or
- Small business CGT exempt roll over amounts.
Trustees approve splitting contributions to a spouse’s account, if –
- the recipient spouse does not meet the following conditions of release:
- Reached age 55 and retired from gainful employment, or
- Reached age 65.
After the end of the financial year, the member can –
- ‘split’ or transfer the contribution across to their spouse’s account, where
- superannuation rules preserve them.
(Split contributions add to the recipient spouse’s superannuation accumulation account until a condition of release is satisfied.)
Why split your contributions?
Splitting your contributions to a spouse below age pension age (where super is not assessed by Centrelink), allows you to –
- reduce your Centrelink assets, by
- transferring super to a spouse below age pension age,
- where it is not assessed by Centrelink .
An alternative is to split to an older spouse, who is closer to age 60. Age 60 is the age from which superannuation withdrawals are tax free.
How can Continuum Financial Planners Pty Ltd help?
Superannuation Splitting is one of many helpful wealth accumulation strategies involving superannuation assets. The experienced financial advisers at our office can help you realise the full potential of your superannuation investments. To make an appointment with one of our team –
phone our office, on 07-3421 3456, or
at your convenience, use the linked Book A Meeting facility.
We acknowledge the contribution from Deutsche Bank through its Desk Caddie for the core content of this article. We have added some additional information to the original material.
(This article was originally posted by us in December 2009. We occasionally update/ refresh it, most recently during April 2025.)
