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Splitting your super

Super splitting is a sensible, simple and strategic way of dividing contributions, managing the transition into retirement and maximising income. It involves transferring concessional or tax deductible contributions from the account of a fund member to their partner.

It is particularly beneficial where there is a reasonable age gap of around five years or more, or where there is a difference in incomes between the partners. It is also a great way of building up the super balance of a partner on a lower income, such as a spouse who is out of the workforce for several years raising children.

Splitting can also be used to obtain early access to the super of the partner who reaches pension age first. This can help preserve accumulated funds as the working partner continues to contribute.

Splitting contributions to a younger spouse also improves your Centrelink position. Although it is not an instant fix, it can be valuable if used as part of a long-term strategic plan for retirement.

Super splitting is done by completing a short form that is supplied by the pension provider, or through a certified financial adviser. Couples should be aware of amounts that cannot be split, including benefits rolled over from another fund and lump sums paid from a foreign superannuation fund.

Posted on 18 August '15 by , under Super.

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Amnesty means that 24,000 businesses own up to underpaying Aussies superannuation

An amnesty scheme which ended earlier this month has caused around 24,000 businesses to admit to underpayment of their worker's super. A total of 588 million dollars will be distributed to almost 400,00 individuals.

The scheme, which covered payments from the introduction of super in 1992, gave employers the opportunity to come clean without any consequences as long as they paid the unpaid super as well as 10% interest for every year the money was overdue.

The ATO will be directing its attention at any businesses that did not admit fault and these businesses will face severe penalties.

Many individuals are looking to access their superannuation early in order to have support during these times. Although there is criticism of early access to super, this facility has been helpful to many families to keep afloat.

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