Contributions splitting updateDolfinwise Super Strategies

Contributions can be split with the contributor's spouse with the split being made after the end of the financial year. When a person opts to roll over their benefits to another fund, they can make a request to the original fund to split their funds for that financial year prior to rolling over.

Superannuation contribution splitting allows a couple to build two separate superannuation accounts even if one spouse is on a low income or not working. In general, a member can only split eligible contributions in the financial year following the year in which the contributions were made. The only exceptions to this rule apply where the member is cashing out or rolling over their entire benefit.

 In 2008/09 and future years for contributions made in the preceding financial year a member may split the lesser of:
Eighty five percent of the concessional contributions for the financial year comprising employer contributions (including salary sacrifice and employer contributions made from plan reserves) and personal deductible contributions.
The concessional contribution cap for that financial year.

Non-concessional contributions of any type cannot be split. An application to split Superannuation contributions must be either made:

	in the following financial year (i.e. application must be made between 1 July following the end of the financial year in which the contributions were made and the following 30 June), or
	during the financial year if the entire benefit is to be transferred in that financial year.

The member will also have to provide evidence to the Trustee of the regulated superannuation fund that at the time of the application the receiving spouse:

	has not reached preservation age
	is between preservation age and 65 years of age and has not retired*

An application is invalid if the:

	amount to be split exceeds the maximum splittable amount
	receiving spouse is 65 years or older, or is between preservation age and 65 and retired*
	member has already made an application relating to the same spouse and the trustee is considering or has processed that application.

If a member intends to claim a personal tax deduction for personal contributions made to superannuation, a notice must be lodged before the superannuation contributions splitting application can be lodged. If the notice is lodged after the application to split, no deduction will be allowed.