Getting super into your spouse’s account

SMSF technical expert and columnist for The Australian newspaper
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Key points

  • There are estate planning reasons to split superannuation contributions, to make sure your spouse gets a share of your assets.
  • By splitting money with your spouse, you might be able to convert the Taxable component into Tax-free component, which will see no tax payable by your non-dependant beneficiaries on your death.
  • Also, benefits paid out of super from age 60 are tax-free but there are no guarantees this will continue.

There are a number of ways to transfer money into your spouse’s superannuation account. One way is through the “withdraw and re-contribution” strategy.

You take a lump sum out of your super and your spouse contributes it to their super account. Issues to consider and check-off for this strategy include your ability to withdraw money from super, tax, transaction costs, the ability of your spouse to make a super contribution and contribution caps. With this strategy it’s common for it to be done with hundreds of thousands of dollars in a single transaction. You can read more about it here.

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