From 1 January 2006 it has been possible for superannuation fund members to split certain superannuation contributions with their spouse.
Why should you consider superannuation contributions splitting? 
The benefits may include: 

1. ability to boost the super of the lesser-superannuated spouse.  It may be possible to work towards equalising the superannuation of both members of a couple, where appropriate;
2. ability to utilise two low rate thresholds on taxable component, for withdrawals prior to age 60; and
3. where members of a couple have a significant age difference.  By splitting contributions towards the older spouse, they may be able access tax-free superannuation sooner, upon reaching age 60

Case Study

Rupert, aged 45, has total taxable contributions from his employer of $35,000 made during the 2007/08 financial year.
In July 2008, Rupert advises his superannuation fund that he wishes to split the entire amount of his maximum splittable contributions for the benefit of Veronica’s (his spouse, aged 46) superannuation fund.
As only 85% of taxed splittable contributions may be split in relation to a financial year, Rupert’s superannuation fund will rollover a contributions-splitting superannuation benefit for the amount of $29,750 (ie. 85% x $35,000).  It will have zero days in the eligible service period and comprise entirely of taxable component.

Superannuation funds are not required to offer splitting
The offering of superannuation contributions splitting to members is legally voluntary for superannuation funds.  Funds will most likely look to their fund membership and ascertain whether the cost of offering the service to members - some funds will charge individual members separately - is worthwhile taking into consideration the proportion of members who will take advantage of splitting.
In the context of self managed funds, it is recommended that the trust deed be checked to see xwhether the fund is allowed to offer splitting of contributions to members.

Defined benefit funds excluded
Superannuation contributions splitting may only apply to accumulation funds, or defined benefit funds where there is also an identifiable accumulation component, eg. a hybrid fund.
What type of contributions may be split?
Existing superannuation balances cannot be split.
Salary sacrifice and superannuation guarantee contributions (ie. employer contributions) and personal deductible contributions are taxable splittable contributions.
How much can be split?
The maximum splittable amount for a financial year means:

• for taxed splittable contributions, the lesser of:
• 85%* of the concessional contributions for that financial year, and
• the concessional contributions cap for that financial year, and
• for untaxed splittable contributions - 100% of the untaxed splittable contributions made in the financial year.
• for untaxed splittable employer contributions - 100% of the concessional contributions cap for that financial year 

* The 85% limit in respect of taxed splittable contributions is to allow for 15% in contributions tax.
How is a splitting application made?
A member of a regulated superannuation fund may make an application (there is no prescribed application form) to split the splittable contributions in respect of the last financial year that ended before the application, ie. a member may lodge an application between 1 July and 30 June in respect of the splittable contributions in the preceding financial year.  The regulations do not prescribe a specific cut-off date for applications to be received by trustees, however, reg.6.44(1) links the application  to splittable contributions made by or on behalf of the member in the last financial year that ended before the application (or the financial year in which the application is made in the case where a member’s entire benefit is being rolled over or transferred in that year). In practical terms, for example, an application to split the splittable contributions referable to the 2007/08 year would need to be made on or before 30 June 2009.
A fund may, however, stipulate a cut-off date for receiving applications to split.
If a member leaves a superannuation fund during a financial year (where the member’s entire benefit is to be rolled over or transferred), they may submit a splitting application to the trustee of the fund in respect of the splittable contributions made to the fund during the current financial year.  This will assist members of employer sponsored funds who must necessarily leave the fund after leaving their employer mid-financial year.
An application to split must include:

• the name of the member’s spouse (which includes de facto spouses) in respect of whom the splittable contributions are to be transferred or rolled over; and
• the amount of the member’s taxed and untaxed splittable contributions that the member seeks to split for the benefit of the member’s spouse; and
• a statement by the member’s spouse to the effect that they:
  
• are aged less than preservation age, or
• are aged between preservation age and 65 and have not satisfied the condition of release known as ‘retirement’*, ie. item 101 in Schedule 1 of the SIS Regulations

An application to split will be deemed invalid if:

• the member has already made an application in the relevant year and the trustee is considering or has given effect to the application; or
• the requested splitting amount exceeds the maximum splittable amount; or
• the member’s spouse is aged 65 or more, or is between preservation age and age 65 and has satisfied the ‘retirement’ condition of release* referred to above.

* In practice this can taken to be fairly broad as a receiving spouse aged between preservation age and age 64 will be asked to declare that they have not 'retired' from the workforce.  Paragraph 35 of APRA Superannuation Circular No. I.A.1 considers contribution and benefit accrual standards and outlines the circumstances under which a receiving spouse, aged between preservation age and age 64 would meet the necessary requirements under regulation 6.44 of SIS:
"In APRA’s view, any of the following circumstances at the time of the contributions splitting application would meet the requirements of reg. 6.44(3) of the SIS Regulations:

•  the receiving spouse is aged less than 55 years (ie, the relevant preservation age up until 30 June 2015);
•  the receiving spouse is aged between 55 and 64 years and is currently gainfully employed for 10 or more hours per week;
•  the receiving spouse is aged between 55 and 64 years, is not currently employed for 10 or more hours per week but does not have the intention never to resume gainful employment of 10 or more hours per week; or
•  the receiving spouse is aged between 55 and 64 years and has never been gainfully employed for 10 or more hours per week."

Trustee responsibilities
The trustee of the fund may accept a splitting application if it is satisfied that the application meets all the necessary requirements.  They must also have no reason to believe any statement made by the member’s spouse (in relation to age and/or work status) is untrue and that the application to split is not for more than the maximum splittable amount for the relevant period.
A trustee that accepts the splitting application must, as soon as is practicable, and in any case within 90 days of receipt of the application, transfer the requested amount for the benefit of the member’s spouse.
Characteristics of the rollover/transfer amount
The spouse receiving the splittable contributions will receive a rolled over or transferred ‘contribution splitting superannuation benefit’ into their account that will be preserved funds, have a zero day eligible service period, and comprise the following components:

• Taxable component equal to the taxed splittable contributions requested in the application; and
• Tax-free component equal to the untaxed splittable contributions in the application.

Splitting and personal deductible contributions
If the splitting spouse wishes to claim a personal tax deduction and split some or all of a year’s contributions with their spouse, then they must first lodge the necessary notice to claim the deduction before requesting that the contributions be split.