Once a member's benefits are transferred from one fund to another, the member cannot split contributions that formed part of the transferred amount. That is, the trustee of the new fund can offer splitting only in respect of future contributions that it receives on behalf of the member.
ClearLaw readers will be aware that the Federal Government has introduced regulations that allow couples to split contributions made after 1 January 2006. This allows a couple to structure their superannuation account balances to reduce the likelihood of incurring additional tax as a result of one person exceeding their reasonable benefit limit in circumstances where their spouse remains well below their RBL. The maximum splittable amount for a member is 85% of their deductible contributions and 100% of the undeducted personal contributions.
Leigh is a partner in the Maddocks Tax & Revenue team.
Leigh regularly provides advice on:
His advice covers both direct and indirect tax considerations.
Leigh advises Australian and multinational companies, high net worth individuals, accountants and financial advisers on all areas of taxation law.
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For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of their team.