sharing super

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Contribution splitting allows you and your partner to build your super nest egg.

 

Like most couples, you and your partner are building a secure future together. And super is a big part of that.

Contribution splitting is a great way to boost super if one of you has spent, or is spending time out of the workforce, or while the other might have been climbing the career ladder. When you split super contributions, money is transferred from one partner’s super account into the other partner’s account. 

 

Image of how contribution splitting works

 

Contribution splitting is the process of splitting before-tax contributions (also called concessional contributions) from one account to another. Before-tax contributions include employer contributions, salary sacrifice and deductible contributions made by those who are self-employed. 

Up to 85% of before-tax contributions can be split into a partner’s super account (in the same fund, or a different fund) following the end of the financial year in which the contributions were made.

Contribution splitting is a different strategy to spouse contributions. Using both spouse contributions as well as contribution splitting strategies could provide a double boost for you and your partner in building your super balances.

Who can you split your super with? 

Couples don’t need to be legally married to split their super. Contribution splitting is available to people in same or opposite sex de-facto relationships. 

If you’re receiving the contribution split, you must be under preservation age or between preservation age and 65 and not yet retired.

What are the contribution limits?

There are limits on how much super can be split. 

The current limit is the lower of:

  • 85% of the before-tax contributions made in the financial year
  • the before-tax contributions cap for the financial year the contributions were made.
Find out more about the contributions cap in How your super is taxed (pdf)
 

You can’t split:

  • after-tax (non-concessional) contributions 
  • government co-contributions
  • super that has been rolled into an account
  • any contributions that have been from the account the split is coming from
  • spouse contributions 
  • a contribution that has already been split (you can only do it once per financial year). 

At HESTA, we offer contribution splitting but we charge a fee to the account that the contribution is coming from. We don’t charge a fee for contributions being made into a HESTA account. In either case, it’s best to consult a HESTA Superannuation Adviser before you go ahead. If your partner is with a different super fund, they’ll also need to contact their fund to check that they also offer this service.

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.

 

Image of couple working on laptop

 

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

Step 1

In the 2019-20 financial year, Ben's employer contributed $10,000 into his super fund. Ben wants to share his super by splitting some of his 2019-20 contributions with his de-facto partner Rina, who works part time. He contacts his super fund who lets him know that he is eligible to apply after 30 June 2020. 

Step 2

Ben completes the Superannuation contributions splitting application form on the ATO website and lodges it with his fund in August 2020. He indicates that he would like to split $5,000 of his employer contributions. 

Step 3

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 2020. 

 

This example is provided for illustration purposes only. 

 

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Need some help?

Make a time to speak with a HESTA super specialist about contribution splitting.