• 85 Online
  • 13192 Members
  • 16659 Posts

Re: Super and spouse sharing

Ask a question

I'm new

Views 257

Replies 1

Hello. I am currently on transition to retirement and intend to retire in 3 years.

My wife has a smaller superanuation balance of around $70K. 

Are we able to transfer her super to mine on retirement?

Thank you 

1 ACCEPTED SOLUTION

Accepted Solutions
Highlighted

Best answer

Dynamo

Replies 0

Hi @bknig30

 

There are two ways by which superannaution between a couple can be 'equalised'.

 

1. Spouse contribution: This is when a member of a couple makes a contribution directly to their spouse's superannuation account. At the time of the spouse contribution, the receiving spouse must be:


••under age 65, or
••aged 65 to 69 and have satisfied the work test 


Spouse contributions cannot be made once the receiving spouse is aged 70 or over. The individual making the spouse contribution can be any age and does not need to satisfy the work test. Spouse contributions may allow the contributing spouse to claim a tax offset of up
to $540 – see here for details and further conditions required.

 

 

 

2. Spouse contribution split: Super contribution splitting allows your clients to transfer concessional contributions made during the year to their spouse’s super account, either in the same or another fund. Quite obviously, where a couple do not receive nor make any CC in a financial year, spouse contribution splitting cannot be applied. Contributions splitting cannot be made to a member’s spouse age 65 or over. The split will generate a ‘contributions-splitting super benefit’ which is a 100% taxable component when it is withdrawn from the originating spouse’s account. The amount is fully preserved in the receiving spouse’s account. Spouse contribution splitting is not compulsory, with each fund deciding if and when to offer splitting. It is important to check with each fund to determine whether your clients will be able to participate in spouse contribution splitting.

 

Contribution splitting to a spouse is a long-term strategy to equalise the accumulation balances between spouses, which may help to maximise the combined total of superannuation savings they may transfer to retirement phase income streams in the future while remaining within their respective transfer balance caps.

 

 

For more information read here.

If you wish to understand more and particularly on how they may apply to you, you may wish to get personal specific advice.

 

 

 

 

 

 

1 REPLY 1
Highlighted

Best answer

Dynamo

Replies 0

Hi @bknig30

 

There are two ways by which superannaution between a couple can be 'equalised'.

 

1. Spouse contribution: This is when a member of a couple makes a contribution directly to their spouse's superannuation account. At the time of the spouse contribution, the receiving spouse must be:


••under age 65, or
••aged 65 to 69 and have satisfied the work test 


Spouse contributions cannot be made once the receiving spouse is aged 70 or over. The individual making the spouse contribution can be any age and does not need to satisfy the work test. Spouse contributions may allow the contributing spouse to claim a tax offset of up
to $540 – see here for details and further conditions required.

 

 

 

2. Spouse contribution split: Super contribution splitting allows your clients to transfer concessional contributions made during the year to their spouse’s super account, either in the same or another fund. Quite obviously, where a couple do not receive nor make any CC in a financial year, spouse contribution splitting cannot be applied. Contributions splitting cannot be made to a member’s spouse age 65 or over. The split will generate a ‘contributions-splitting super benefit’ which is a 100% taxable component when it is withdrawn from the originating spouse’s account. The amount is fully preserved in the receiving spouse’s account. Spouse contribution splitting is not compulsory, with each fund deciding if and when to offer splitting. It is important to check with each fund to determine whether your clients will be able to participate in spouse contribution splitting.

 

Contribution splitting to a spouse is a long-term strategy to equalise the accumulation balances between spouses, which may help to maximise the combined total of superannuation savings they may transfer to retirement phase income streams in the future while remaining within their respective transfer balance caps.

 

 

For more information read here.

If you wish to understand more and particularly on how they may apply to you, you may wish to get personal specific advice.

 

 

 

 

 

 

Top Solution Authors