CONTRIBUTION SPLITTING

What is contributions splitting?

You can split certain contributions with your spouse (including an opposite-sex de facto partner or a same-sex de facto partner), provided that your spouse is less than 55 years of age, or is between the ages of 55 and 65 years and not yet retired.

There are still some limited advantages to split contributions for some members, by increasing your spouse’s super savings with some of your own.  If you are interested, it is highly recommended that you obtain advice from a licensed financial adviser.

Which contributions?

The contributions you can apply to split are:

  • Any contributions your employer made for you (including salary sacrificed contributions)
  • Any personal contributions you have made for yourself and where you have advised Westscheme that you will claim a tax deduction for those contributions.  For example, if you are self-employed or substantially self-employed.

These are called ‘taxed splittable contributions’.

  • You can ask to transfer to your spouse up to 85% of the financial year’s ‘taxed splittable contributions’.
  • ‘Taxed splittable contributions’ are ‘concessional’ contributions and the amount of these contributions you ask to split cannot be more than the ‘concessional’ contributions limit (cap) – an annual limit of $50,000 (under age 50) for the 2008/09 financial year or $25,000 for the 2009/10 financial year.  For those over age 50, the annual limit for the 2008/09 financial year was $100,000, or $50,000 for the 2009/10 financial year.

Personal contributions and amounts that have been rolled over to Westscheme or transferred from an overseas fund cannot be split.

How to apply?

You can apply to split contributions:

  • In the following financial year (between August and April), or
  • During the financial year if the entire benefit is to be rolled over or cashed before the end of that financial year.
  • Only one application for each year can be lodged.
  • You cannot apply to split contributions made to your account before the beginning of the previous financial year.
  • If you are interested in this facility, please contact us on 08 9278 7070 or 1800 198 327.  We will send you an application form.