Couples may split super contributions

The tax on superannuation paid by high-income earners will be abolished from July 2005. The 10 per cent tax, or superannuation surcharge, applies to employer super payments for those with incomes of $99,710 a year or more. The government will also allow couples to split superannuation contributions from July 2006. This will allow couples to create and build two superannuation accounts, and to withdraw more from their retirement savings and still stay within the “reasonable benefit limit” that applies to retirement payments out of superannuation savings.