Print PageContribution splitting
Contribution splitting allows couples to save tax by maximising the amount they can withdraw from their super tax-free if they retire before age 60.
How does contribution splitting help me save tax?
If you're retired and under age 60 you can withdraw up to $165,000 tax-free from the taxable component of your super for 2011-12 (although the 2011-12 flood levy may apply). By splitting contributions with your spouse, you can build up their super and both withdraw the maximum tax free amount. Withdrawals above $165,000 are taxed up to 16.5% plus the flood levy for 2011-12.
Are there other benefits of contribution splitting?
Contribution splitting can also be used to access tax-free super earlier or increase eligibility for Centrelink payments. Take a look at our contribution splitting fact sheet, which describes four great contribution splitting strategies for couples.
How much can I split?
You can split 85% of before-tax contributions you made to your super fund in the previous financial year (the other 15% is deducted in tax), provided the amount is under your before-tax contribution cap. See our contribution caps fact sheet for more information.
Who can I split contributions with?
You can split your contributions with your spouse or de facto partner, including same-sex partner, provided:
- they're under age 65
- they're not retired
- their super fund accepts split contributions.
Are there any fees?
Split contributions count towards your two free withdrawals each financial year. Subsequent withdrawals incur a $22 fee.
How to split your contributions
To split your contributions with your spouse complete the Contribution splitting form.
Common questions about contribution splitting
What are before-tax contributions?
Before-tax contributions include the compulsory 9% payment your employer makes plus any salary sacrifice contributions you make.
What is the before-tax contribution cap?
The before-tax contribution cap is $25,000 per financial year. If you're over age 50 you can contribute up to $50,000 pa for 2011-12.
You can't increase your contribution cap by splitting
Contribution splitting doesn't reduce the amount of contributions counted towards your contribution cap.
If you're aged between 55 and 65, find out how you can reduce your tax and boost your super.
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