14 May 2002

A Better Superannuation System - splitting superannuation contributions between couples

The Minister for Revenue and Assistant Treasurer, Senator Coonan, today announced that through the 2002-03 Budget the Government has given effect to its superannuation election commitment to allow, from 1 July 2003, members of accumulation funds to split future personal and employer superannuation contributions with their spouse. An individual will be able to have the split superannuation contributions paid into a separate account in their spouse's name. Existing superannuation benefits will not be eligible for splitting.

Splitting will help provide financial security in retirement to both spouses as the receiving spouse will have access to their own Eligible Termination Payment tax-free threshold and Reasonable Benefit Limit. Allowing couples to split superannuation contributions recognises that a partner who works in the home, or is a low income earner, makes a significant contribution to building a family's assets.

The ability to split superannuation contributions will not affect an individual's superannuation surcharge liability.

A discussion paper will be issued shortly for public comment, canvassing options to implement contributions splitting.