Change to contribution splitting
A cap of $25,000 per annum will apply to contributions you split to your spouse, in relation to contributions made from 1 July 2019.
Currently, you can split an unlimited amount of concessional contributions (that is, employer or salary sacrifice contributions) to your spouse.
However, a $25,000 cap per financial year will soon be introduced due to recent changes in legislation.
Timing of change
Only employer and salary sacrifice contributions made to your Triple S account in the 2019-20 financial year, a cap of $25,000 will apply to the amount that you can split to your spouse in the 2020-21 financial year.
If you choose to close your Triple S account in the 2019-20 financial year and split your contributions for that financial year, you will have the $25,000 cap per financial year applied to these contribution splits made to your spouse in 2019-20.
The $25,000 cap per financial year is set in line with the Commonwealth Government’s Concessional Contribution Cap. The cap is subject to indexation and may change in future years.
If you are planning to split contributions to your spouse or if it currently forms part of your financial plan, you should seek financial advice regarding how the introduction of this cap will affect you.
Why split contributions with your spouse?
Contribution splitting is a way of sharing your super with your spouse.
Contribution splitting may also form part of a financial planning strategy and may alter your tax position. Your financial planner will be able to advise if contribution splitting could benefit you and your spouse.
Note: Members can only make one contribution split to their spouse each financial year.
Find out more here.