Author: Bruce4Tax(Taxicorn)Taxicorn 22 Jan 2024
Immediately after resigning she will withdraw $200,000 from her super fund thus making her TSB $490,000 ie <$500,000 for 2023/24
No - for 2024-25
The test for 2023-24 = balance on 01/07/2023.
The rules for super splitting are:
https://www.ato.gov.au/forms-and-instructions/superannuation-contributions-splitting
My question is: Can I split $100,000 from my super into hers in 2023/24 as she has the carry forward of $100,000 ?
Yes - $ 130,000 x 85% = 110,500
Your wife's carry forward is not relevant for super splitting, but she cannot be retired.
Best to get proper advice first.
Author: Ryan_Erin(Initiate)Initiate 25 Jan 2024
Thanks for the reply, Bruce..
So does that mean that because her TSB will be less than $500K on 1/7/2024 (24/25 fin year), it is only in the 2025/26 year that she will be eligible for me splitting the 100K into her super ? I'm a bit confused on dates and timing !
Cheers
Author: Bruce4Tax(Taxicorn)Taxicorn 25 Jan 2024
Splitting has nothing to do with whether or not TSB will be under $ 500 K.
Splitting does not involve claiming any deductions either.
You need to look at the link , then get proper advice from a licensed advisor - must be AFSL holder in order to advise on contributions and withdrawals, apart from purely tax issues.
Author: Ryan_Erin(Initiate)Initiate 29 Jan 2024@Bruce4Tax
OK .. but the link clearly states:
The concessional contributions cap may be increased above the general concessional cap if you are eligible. This will occur from 1 July 2019 onwards if:
- your concessional contributions for the year exceed the general concessional contributions cap
- your total superannuation balance just before the start of the financial year is less than $500,000
- you have unused concessional contributions cap amounts from the previous five years (with 2018–19 financial year being the first year you can accrue unused concessional contributions).
Author: Bruce4Tax(Taxicorn)Taxicorn 29 Jan 2024@Ryan_Erin
All true, and all related to the person making a contribution then claiming a tax deduction.
But, no relevance to the person receiving a split. The person receiving the split cannot claim a deduction for the the split amount they receive.
Author: Ryan_Erin(Initiate)Initiate 29 Jan 2024@Bruce4Tax
Cheers Bruce- so does that mean because I have a super balance of >$500K, I cannot split the 110,500 into her account ?
Author: Bruce4Tax(Taxicorn)Taxicorn 29 Jan 2024@Ryan_Erin
No.
It means that their is no tax deduction for member receiving split.
Author: Ryan_Erin(Initiate)Initiate 30 Jan 2024@Bruce4Tax
Not too worried about tax deduction. Just wanting to confirm whether I can split the whole amount of my wife’s carry over cap into her super even though my TSB >500k. ??
Author: Bruce4Tax(Taxicorn)Taxicorn 30 Jan 2024
@Ryan_Erin
Yes - but confirm with your fund.
Just because the fund can do something, does not always mean they must do it.
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