Spouse split contributions to boost women’s super

Spouse split contributions can boost women’s super and July is the best time of year to consider filling a superannuation contributions splitting application, according to Dixon Advisory.

Dixon Advisory said superannuation contributions splitting could be used to boost balances for part time or lower income earners, which can benefit women who had been out of work.

In July, the higher earning spouse could transfer some or all of their employer’s Super Guarantee (SG) contributions to their spouse’s, and because it’s using money already in the superannuation system there is no impact on household cashflow.

Nerida Cole, head of advice at Dixon Advisory, said it had been well documented what impact being a primary care-giver could have on a mother’s super balance.

“Women continue to face significant challenges in achieving financial security as they retire from the work force and retire with almost 50 per cent less in super than men,” Cole said.

“Superannuation contributions splitting is an option for couples to work together to keep both partners super account balance growing - even if one person is on a low income or not working.”

Couples could apply to split contributions immediately after the financial year ends and they could transfer up to 85 per cent of the concessional (tax deductible) contributions in a financial year.

To be able to receive a contributions transfer from your spouse you must not have retired.

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