First Super Contributing Splitting Fact Sheet_Aug2015
WHEN CAN YOU APPLY TO SPLIT YOUR CONTRIBUTIONS?
You can apply to split your contributions at any age, but your
spouse must be either:
>
less than the preservation age* that applies to them; or
>
aged between their preservation age and 65 years,
and not retired.
Lodge the application with your super fund in the:
>
˜nancial year immediately after the ˜nancial year in
which the contributions were made; or
>
˜nancial year the contributions were made, only if your
entire bene˜t is being withdrawn before the end of that
˜nancial year as a rollover, transfer, lump sum bene˜t
or combination of these.
Can your existing super balance be split?
No, only concessional contributions made in the previous
˜nancial year can be split, or concessional contributions
in the current ˜nancial year if the entire balance is to be
rolled-over, transferred or withdrawn before the end of
the ˜nancial year.
How much can be split?
You can ask your super fund to transfer to your spouse up
to 85% of a ˜nancial year™s taxed splittable contributions.
These are generally:
>
any contributions your employer made for you
(your before-tax contributions), including any salary
sacri˜ce contributions; or
>
any personal contributions you made for yourself that
you have advised your super fund you will claim a tax
deduction for Πusually only self-employed people
can make this type of contribution.
The maximum amount of taxed splittable contributions
you can apply to split is the lesser of:
>
85% of the concessional contributions for that ˜nancial
year and; or
>
the concessional contributions cap for that ˜nancial year.
For the 2015/16 ˜nancial year, the concessional caps are:
>
$35,000 for members who are over age 49 at
30 June 2015; or
>
$30,000 for members who are under age 49 at
30 June 2015.
WHAT CONTRIBUTIONS CANNOT BE SPLIT?
Any contributions that are not taxed splittable employer
contributions cannot be split with your spouse Πfor example,
splitting is not available for personal contributions you
cannot claim a deduction for, plus any Government
co-contributions.
What are the advantages of contribution splitting?
Contribution splitting may provide the following bene˜ts:
>
You and your spouse can take advantage of the
low-rate tax threshold if you meet a condition of
release between your preservation age and age 60
and make a claim on your super account.
>
For the 2015/16 ˜nancial year the low rate threshold is
$195,000 and any withdrawals from your super account
will be tax-free and assessable. Any amounts above the
threshold will be taxed at 17%.
>
Splitting contributions with your spouse can effectively
double the amount of super that you and your spouse
can receive tax-free before turning 60.
>
Splitting contributions with an older spouse may enable
earlier access to super bene˜ts, if the older spouse is
aged 60 years or older and meets a condition of release,
generally no tax* will apply to the superannuation bene˜ts
received (lump sum or pension bene˜ts).
* Current tax regulations
SPLITTING YOUR SUPER WITH YOUR SPOUSE MEANS THAT YOU CAN BOTH HAVE SUPER TO DRAW ON WHEN YOU
RETIRE. IT ALLOWS NON˜WORKING OR LOW INCOME SPOUSES TO BUILD UP THEIR OWN SAVINGS.
CONTRIBUTION SPLITTING
CONTRIBUTION SPLITTING FACT SHEET˜ PAGE2
Example:
Bob (Age 61) had the following contribution
arrangements with his employer in the
2015/16 ˜nancial year:
Employer Super Guarantee
$10,000
Salary Sacri˜ce
$20,000
After-tax Personal Contributions
$5,200*
Total Employer Concessional Contributions
$30,000
Super
$30,000 X 15% = $4,500
Contributions Tax
Splittable Concessional Contributions
$25,500
Bob can split up to $25,500 with his spouse.
* Does not qualify as a splittable contribution
What form do I need to complete to take advantage of
contribution splitting?
>
The
Contribution Splitting Application
form and instructions
for First Super members who want to split their super
contributions can be obtained from the Australian
Taxation Of˜ce (ATO) website www.ato.gov.au/super.
>
The completed form is then lodged with First Super.
>
First Super must assess whether the member meets
the eligibility criteria to split their super contributions.
Ł
Members can only lodge one valid application to split
their contributions each ˜nancial year.
Ł
If you wish to apply to split contributions, please contact
First Super on
1300 360 988
.
Ł
For more information on contribution splitting
and to determine eligibility refer to the ATO website
www.ato.gov.au/super.
WANT TO KNOW MORE?
WE™RE HERE TO HELP.
Please contact our Service Centre today.
Call
1300 360 988
mail
@
firstsuper.com.au
Website
firstsuper.com.au
PUTTING MEMBERS FIRST
You should seek financial advice before making any decisions regarding contribution splitting.
Important information:
The material contained in this bulletin is accurate and reliable as at August 2015.
This information is of a general nature only and does not take into account your personal circumstances
or situation. We recommend that you seek quali˜ed ˜nancial advice before making any investment decision.
The bulletin is provided by First Super Pty Ltd ABN 42 053 498 472, AFSL No. 223988, as the Trustee of
First Super ABN 56 286 625 181. If you intend to invest in or continue to hold this product you should obtain
and consider a copy of the Product Disclosure Statement which is available by phoning 1300 360 988.
First Super Pty Ltd
ABN 42 053 498 472
AFS Licence No: 223988
RSE Licence No: L0003049
First Super Pty Ltd as Trustee
of First Super ABN 56 286 625 181
CONTRIBUTION SPLITTING