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Advantages of superannuation splitting


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I am building a healthy superannuation whilst my wife doesn't work so has no superannuation. 

 My company contributes circa $36,000 per annum to my super, a significant amount over the $25000 cap. If I was to split that $11,000 over the cap to my wife's superannuation fund would we able to have that taxed at the lower 15% rate? Or am I understanding the benefits of superannuation splitting incorrectly? 

 

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Hello CaptainR

If the idea of spouse splitting is to try and avoid the Div 293 consequences: https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-paying-tax/Division-293-tax---information-for-individuals/ and the Concessional Contribution cap breach consequence https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-paying-tax/Super-contributions---too-much-can-mean-extra-tax/?page=2#If_you_exceed_the_concessional_contributions_cap.

Then I'm afraid in a nutshell no it will not have this effect.

Regards

Andy

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