The trustee of ElectricSuper recommends that you seek advice from a licensed, or appropriately authorised, financial adviser regarding your super before you make any decision in relation to super contributions splitting.
What is super contributions splitting?
Contributions splitting lets members transfer eligible contributions to an account in the name of a spouse in a complying superannuation fund. This allows couples to take advantage of two tax free thresholds. However, conditions apply as to what contributions can be split and when a member can split contributions.
Who can contributions be split with?
Contributions can only be split with an eligible spouse who has not permanently retired or reached age 65.
A spouse includes a person to whom the member is legally married or a de facto partner where the couple live together on a genuine domestic basis as husband and wife, or a same sex spouse.
What contributions can be split?
You will generally be able to request a contributions split of up to 85% of concessional contributions* made during the relevant financial year, provided you maintain a leaving service benefit of at least $5,000 in ElectricSuper. Concessional contributions include employer and salary sacrifice contributions, any deductible contributions (i.e. those for which you have advised the trustee that you will be claiming a tax deduction).
The maximum amount of taxed contributions a member can split in a financial year is the lesser of 85% of the concessional contributions and the concessional contributions cap for that financial year.
From 1 July 2019, the concessional contributions cap may be increased above the general concessional cap if you are eligible. To be eligible you must make concessional contributions in excess of the general concessional cap, have a total superannuation balance less than $500,000 immediately prior to the financial year, and have unused concessional cap space from the previous 5 years (with 2018-19 financial year being the first year you can accrue unused concessional contributions). Your concessional contributions cap will equal the general concessional cap plus the previously unused concessional contributions made in excess of the general concessional contributions cap. This is your increased concessional contributions cap. Your increased concessional contributions cap will be used to determine the maximum amount of taxed splittable contributions.
For details about the Concessional Contributions cap for the current financial year, please contact the Helpline.
* You can only split 85% of taxed contributions as the trustee must make an allowance for the deduction of the government’s 15% contributions tax. When you request a split of a taxed contribution amount this will be a gross amount. Note that 15% will be automatically deducted from the amount that you nominate to split (see the Contributions Splitting Application form for more details).
Members will only be able to request a split for contributions that have been made into the accumulation component of their superannuation benefit.
The following cannot be split:
- member contributions (but excluding those contributions for which you have advised the trustee that you are claiming a tax deduction), eligible spouse contributions and government co-contributions, and untaxed contributions
- amounts rolled over or transferred into ElectricSuper
- lump sum payments from an overseas super fund
- employment termination payments
- notional contributions relating to a member’s defined benefits.
There may be other circumstances in which the legislation restricts or prohibits contributions splitting depending on a member’s individual circumstances. We will advise you if this applies at the time you make a request to split contributions.
Your spouse can join ElectricSuper
If you’re thinking of taking advantage of super contributions splitting, it’s worth noting that your spouse may be able to open their own super account in ElectricSuper.
If you need help
For assistance or information on super contributions splitting please call ElectricSuper on 1300 307 844 or