Spouse Super Contribution Splitting to Reduce Div 293 Liability

(Newbie)Newbie

22 Nov 2024

Hi,

I’d like some advice on whether I can use spouse contribution splitting to reduce my Division 293 tax liability for the 2023/24 financial year.

Here’s my situation:

My taxable income for the 2023/24 year was $252,000.
I made $26,600 in concessional contributions to my super fund.
My spouse earns $83,000 annually and also makes voluntary concessional contributions to their super fund.

I understand I can split up to 85% of my concessional contributions with my spouse, provided their total concessional contributions remain below the $27,500 cap. My goal is to reduce the Division 293 tax that applies to me.

Could someone clarify:

Whether this strategy works to reduce Division 293 tax for contributions made in 2023/24?
If I split contributions in the following financial year (2024/25), does it still reduce my Division 293 tax liability for the 2023/24 year? i.e. will it be refunded in the 2024/25 year?
Are there any additional tax implications or timing considerations I should know about?

Thank you for your help!

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