Contribution Splitting
Prior to 2007, superannuation benefits were subject to reasonable benefit limits (RBLs), which capped the amount that could be received at concessional tax rates. This created an incentive to split contributions with a spouse who had a lower balance. These limits were abolished in 2007 as part of the Simpler Super reforms.
While contribution splitting can still provide some tax advantages in specific circumstances (such as accessing two low‑rate cap thresholds before age 60), another advantage today is to equalise super balances between spouses, manage total super balance thresholds, and optimise access to contribution caps and retirement phase limits.
Taxed Splitting Contributions
You can apply to split up to 85% of your concessional (before‑tax) contributions from a financial year to your spouse’s super account.
These ‘taxed splittable contributions’ generally include:
- Employer contributions, such as super guarantee and salary sacrifice contributions
- Personal contributions for which you have claimed a tax deduction
In some cases, other concessional amounts may also be included, such as amounts allocated by a super fund from reserves.
What contributions can be split?
The maximum amount you can transfer to your spouse generally depends on the type and amount of concessional contributions made to your super account in the previous financial year.
In most cases, you apply to split contributions in the financial year after they were made. However, you may apply in the same financial year if you are rolling over, transferring or withdrawing your entire super benefit before the end of that year.
There are two main types of contributions that can be split with your spouse:
- Taxed splittable contributions (generally concessional contributions such as employer contributions, salary sacrifice, and personal deductible contributions)
- Untaxed splittable employer contributions (typically limited to certain public sector superannuation schemes and not applicable to Netwealth products)
Other types of contributions, such as non‑concessional contributions and rollovers, cannot be split.
When can you apply to split your contributions?
You can apply to split your contributions at any age. However, your spouse must be:
- under their preservation age, or
- between their preservation age and age 65, and not retired
You can apply to split your contributions in either of the following timeframes:
- In the financial year after the contributions were made, or
- In the same financial year the contributions were made, but only if you are withdrawing, rolling over or transferring your entire super benefit before the end of that year
When would your application be invalid?
Your application to split contributions will be invalid if:
- you have already applied to split contributions from that fund for that financial year
- the amount you apply to split exceeds the maximum allowed
- your spouse is aged 65 or over
- your spouse has reached their preservation age and is retired
How can contributions be split into a Netwealth account?
To complete a super contribution split, the form that you need is the Superannuation contributions splitting application form which can be located under Support > Forms & Disclosure Documents > Super Accelerator.
Things to consider
- Contribution caps and eligibility rules apply
- Splitting may not be beneficial in all circumstances
- Tax outcomes depend on personal situation