If you are still working and aged between 60 and 65 you can open a Transition to Retirement Income Stream and access up to 10% of your super tax-free. You can then recontribute it back into the super system.

Depending on your aims, you could recontribute the money to your super or to your spouse’s super, or both.

Taking money out of your super in the form of a Transition to Retirement Income Stream and putting it back into super can move money that was paid into your super by your employer or by salary sacrifice to the same tax-free status as contributions paid in from after-tax money.

What if you’re already retired?

You can potentially still recontribute after you retire. Aged between 60 and 67, you can withdraw lump sums from your super and make a recontribution back into super. In fact, if you are already retired it is possible to take advantage of the non-concessional cap bring forward rules which would allow you to recontribute even more money.

Why recontribute?

Reason 1

It can help minimise the amount of tax that’s payable for your adult children when they inherit your super. You can learn more about this in our video “Leaving Super to Adult Children and Other Non-Tax Dependants“.

By contributing the money to your spouse’s super, you can both take advantage of the government’s annual super contribution caps. This could mean you can contribute money back into your own super up to the annual cap’s limit and contribute to your spouse’s super to the cap limit for them too. It could double the speed you are able to change the tax status of your money.

Reason 2

If your total super balance is close to the lifetime super cap (also known as the Transfer Balance Cap and Total Super Balance Cap), moving money to your spouse’s super will reduce your super balance and may give you more flexibility when it comes to retirement.

Reason 3

There may be Services Australia (Centrelink) benefits to putting money into your spouse’s super. If your spouse is younger than you and not yet at Aged Pension age, by moving some of your super into their account it won’t be assessed as part of your assets for the Aged Pension test for you. It might mean you could access the Aged Pension or part Aged Pension, at least until they also reach Aged Pension age.

Two people with arms around each other are walking away from the camera and are out of focus. There is a gold piggby bank in the foreground with piles of coins sitting beside it. They may be of the age that allows them to recontribute

Want to know more?

You can find the current caps and limits on superannuation on the Australian Taxation Office website.

You can also make a time to meet with one of our Member Services Team. We can discuss recontribution in more detail and answer all your questions. We can’t provide advice but we can give you all the information you need to make an informed decision. Your spouse is welcome to come along too. Appointments are free. Book now.

If you want to see this information visually, we have a short animated video. Watch “Recontribution Strategies Explained”.

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