Level 5, 170 Queen Street, Melbourne, VIC, 3000
Phone: 03 8602 2000 Email: admin@schetzerconstantinou.com.au
FAQ: Superannuation Splitting
- When and what does super-splitting really mean?
- What is splitting?
- Can I move split super to my own fund?
28 December 2002 is the date from which you can "split" super under changes to the Family Law Act 1975.
Basically the new legislation means superannuation can now be treated as "property" and not just a future "resource".
The legislation is complex. There are many tax and financial planning issues to be taken into account when splitting superannuation (e.g. tax free threshold). This is only an overview.
A splitting order tells the trustee to create a separate fund in the name of the non-contributing party.
All components of entitlements are split - lump sum pension, preserved and non-preserved components and all retain their character in the newly created fund.
In most cases it will be possible to transfer the benefits you receive upon a split to another fund.
However, in some funds such as a defined benefits scheme the party receiving the split funds may have to retain their entitlements in that fund until the original member becomes entitled to their superannuation.