Published 11 August 2020 (amended 1 March 2021)
If you are married or in a de-facto relationship, you and your partner can help grow each other’s superannuation so you can both enjoy a comfortable retirement.
This can be helpful if one of you has had time out of the workforce and long periods without contributions. Giving each other’s superannuation a boost is a great way to catch up.
Also, if your partner is not already a member of LGIAsuper, they are welcome to apply to join us. They do not need to work for local government, as we are open to people joining from many other sectors and industries. For further information and online applications, visit Join LGIAsuper today.
Anyone can pay into their partner’s superannuation, as long as the recipient partner is aged under 67 years and you must be:
If the recipient partner is age 67 to 74, they must meet the conditions above and work at least 40 hours in a consecutive 30-day period during the financial year. When your partner reaches age 75 they can no longer receive a contribution from you.
Further information about eligibility is available in our superannuation for your partner info sheet.
There are two ways that you can pay into your partner’s superannuation: spouse contributions, and contribution splitting.
You can pay amounts directly into your partner’s superannuation with spouse contributions.
Spouse contributions are made from after-tax income (i.e. they cannot be salary sacrificed) and count towards your partner’s non-concessional contributions limit (cap), which is $100,000 for the current financial year.
There is no tax on spouse contributions, as long as they do not exceed the non-concessional contributions cap. If your partner earns between $37,000 and $40,000 each year, you could also receive a tax offset of up to $540.
Further information is available in our superannuation for your partner info sheet.
Some of your concessional (before-tax) contributions from the previous financial year can be redirected to your partner’s account. This is known as contributions splitting.
Types of contributions that you can split with your partner include:
You can split up to 85% of your concessional contributions from the previous financial year. The minimum split amount is $500. Split contributions do not count towards the recipient partner’s concessional contributions cap.
Defined Benefits members can only split salary sacrificed personal contributions.
Further information about eligibility, contribution caps and tax is available in our superannuation for your partner info sheet.
Your partner, friends and family can join LGIAsuper and enjoy many of the same membership benefits that you do.
LGIAsuper has a long history of helping Queensland local government employees and their spouses grow their retirement savings. Since mid-2017 we have been open to the wider community as well, so we are welcoming new members from many different sectors and industries.
If you are considering contributing to your partner’s superannuation, speaking to a financial adviser can help you decide what is best for your situation.
LGIAsuper’s financial advice service* can help you consider the options available for paying into your partner’s superannuation.
Fees will vary according to the type and complexity of personal advice required. If you would like to discuss how you and your partner can grow your superannuation together, please call us on 1800 444 396.
* LGIAsuper has engaged Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514 to facilitate the provision of financial advice to members of LGIAsuper. LGIAsuper Financial Advisers are Authorised Representatives of IFS.
This article has been produced by LGIAsuper Trustee (ABN 94 085 088 484, AFS Licence No. 230511) ATF LGIAsuper (ABN 23 053 121 564) and may contain general advice, which has been prepared without taking into account your objectives, financial situation or needs. As such, you should consider the appropriateness of the advice to your objectives, financial situation and needs before acting on the advice. You should also obtain and consider the Product Disclosure Statement (PDS) for your account before making any decision to acquire or contribute additional amounts to your LGIAsuper account - available to download at https://lgiasuper.com.au/pds or call us on 1800 444 396 to request a copy. This article contains information that is up to date at the time of publishing. Some of the information may change following its release. Any questions can be referred to LGIAsuper by calling us on 1800 444 396 or by emailing us at email@example.com