Many of our clients often wonder if they can split their super between members of their fund. As we have discussed in a previous article, super splitting with your spouse is a very common concept.
Following our previous discussions on super splitting, changes that took affect on 1 July 2018 mean that the concessional contributions cap could actually be enlarged.
Members may be able to carry forward unused concessional contributions to later years, which effectively increases their concessional contributions cap.
This will occur if all of the following apply:
- the member’s concessional contributions for the year exceed the general concessional contributions cap.
- the member’s total super balance just before the start of the financial year is less than $500,000.
- the member has unused concessional contributions from the previous five years (with 2018–19 financial year being the first year you can accrue unused concessional contributions).
Source: ATO
If the member meet the above conditions, their increased concessional contributions cap will determine their maximum splittable amount.
Before applying for a contributions split…
It is vital that you speak to a superannuation expert before splitting your super with your spouse. The strategies outlined in this article may not benefit everyone, so it is vital that you discuss your options with a skilled self-managed super fund specialist. Paris Financial can assist you today on (03) 8393 1000.
