One particular strategy is called contribution splitting where you can split a portion of your employer super contributions (and personal deductible contributions) with your spouse. Where there is a reasonable age gap between members of the couple, this strategy can provide earlier access to super benefits and tax concessions. Furthermore, you can use contribution splitting to achieve a more even distribution of superannuation benefits. Over time, superannuation legislation is subject to change. Spreading a couple’s superannuation benefits across both members of a couple could help protect against future legislative risk.
Another useful strategy for couples to consider is a spouse contribution. If you contribute to your spouse’s super, you may be able to receive a tax offset and build retirement savings.
If your spouse’s income is within $10,800, you can reduce your tax by up to 18% on the first $3,000 of after-tax income you contribute into their super. This means you get a $540 tax offset on the $3,000 you contribute. This may not sound like much as a one-off, but over time it can grow to a substantial saving. The tax offset decreases as your spouse’s income exceeds $10,800 and cuts off when their income is $13,800 or more. This does not mean you can no longer contribute, it just means you won’t receive a tax offset.
At Cotter Financial Services we can identify the appropriate strategy for you based on your personal and financial situation - for more information about retirement planning, contact Cotter Financial Services on P: (07) 3333 2610
The information provided is general in nature and does not take into account your particular investment objectives, financial situation or insurance needs; we therefore recommend you seek advice tailored to your individual circumstances before making any specific decisions.
Cotter Financial Services and its advisers are Authorised Representatives of Fortnum Private Wealth Pty Ltd ABN 54 139 889 535 AFSL 357306 Australia Credit Licence No 357306 trading as Fortnum Financial Advisers.