contribution splitting

You share everything else with your spouse, why not share your super (or theirs)? When you split super contributions, money is transferred from one spouse’s super account into the other’s account.

how does contribution splitting work?

 

Contribution splitting is the process of splitting before-tax contributions (also called concessional contributions) from one super account to another.

Before-tax contributions include employer contributions, salary sacrifice and personal contributions you have claimed a tax deduction on.

 

 

The maximum amount that can be split into a partner’s super account (in the same fund, or a different fund) is the lesser of 85% of before-tax contributions and your concessional contribution cap following the end of the financial year in which the contributions were made. However, in some circumstances, contributions may need to be split in the same year they’re made such as if you intend to withdraw all your super or rollover your whole account. Visit the ATO website for more information.

 


 

why would you do it?

 

If you or your partner have spent time out of the workforce or don’t have much of a super nest egg built up, contribution splitting can be a great way to give your super a potential boost.
 

 

Access a higher rate of government Age Pension

If one of you has substantially more super, you may not be able to access the Age Pension. By splitting super with your partner and reducing your super, you may be able to access more Age Pension once you retire.

 

Maximise the amount of super you both have at retirement

Everything’s better when you share right? Too often in a couple, one partner retires with significantly more super than the other. The potential benefits of retiring with similar amounts of super can include tax savings and even easier estate planning.

 


 

who’s eligible to split contributions?

 

Married couples or those in de-facto relationships can split their super as long as you are both Australian residents.

You can apply to split your contributions when you are any age, but if you’re receiving the contribution split, you must be under your preservation age or between your preservation age and 65 and not yet retired.

 

 

 

case study

Check out how Ben and Rina were able to share their super
 

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In the 2023-24 financial year, Ben's employer contributed $10,000 into his super fund. Ben wants to share his super by splitting some of his 2023-24 contributions with his de-facto partner Rina, who works part time. He contacts his super fund who lets him know that he’s eligible to apply after 30 June 2024. 

 

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Ben completes the Superannuation contributions splitting application form on the ATO website and lodges it with his fund in August 2023. He indicates that he’d like to split $5,000 of his employer contributions. 

 

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Ben’s super fund accepts his application based on:

  • the amount of $5,000 being less than 85% of the $10,000 contributed by his employer, and
  • Ben’s concessional contributions cap.

Ben’s super fund transfers $5,000 to Rina’s super fund in August 2023. 

 

Couple preparing food with children inthe background

 

things to note 

At HESTA, we offer contribution splitting without charge and we don’t charge a fee for contributions being made into a HESTA account. If your partner is with a different super fund, they’ll also need to contact their fund to check that they also offer contribution splitting.

Before you decide to split contributions, it’s best to consult a superannuation adviser.

 

 

ready to split your super?

To apply to split contributions, the partner who is contributing should complete the Superannuation contributions splitting application form on the ATO website and submit it to their super fund.

 

 

Need some expert help with contributions?

Our Superannuation Advisers can help work out a contribution strategy that's right for you, and your partner. They can help you with most topics relating to your super account at no extra cost: it’s all part of being with HESTA.