One of the ways to boost your partner’s superannuation is through Contribution Splitting.
Contributions Splitting refers to splitting your super contributions with your spouse. Only deductible employer and deductible personal contributions can be split.
While splitting super contributions with your spouse can help you and your spouse take advantage of a low-rate tax threshold (which applies to lump sums paid before age 60) and help both parties equalise their super balances, there are complex legal requirements around the type of contribution, the amount of a contribution which can be split, timing of splitting contributions, spouse’s age requirements and other issues.
Also contribution splitting occurs after the close of the financial year.
Typically, Contribution Splitting is specifically offered by defined contribution funds. However, even if the fund rules permit such arrangements, superannuation laws and compliance requirements, including the forms and resolutions required to execute the arrangement, can be hard to keep track of, whereas, any breaches in the law, can result in adverse consequences.
We can help!
With our Contribution Splitting Resolution toolkit documents and assistance from our expert lawyers, we can provide you with the necessary advice and documentation to ensure compliance with relevant laws.
Registered users of SUPERCentral are granted complimentary access to Contribution Splitting Resolution toolkit documents, or, alternatively, you can instruct our lawyers to draft documents for a fee.
Please contact our helpdesk at Townsends Business & Corporate Lawyers on (02) 8296 6222 or email firstname.lastname@example.org for pricing and assistance with ordering this handy document-package.