Liberal Senator Jane Hume has introduced a bill to allow couples to split their superannuation without additional taxes.
Under the proposal, the partner with the most superannuation could transfer up to $2 million from their fund to their partners.
It’s estimated women in Australia retire with about 25% less money saved than men. Hume says the bill is aimed at closing the “gender super gap”.
The bill would need the support of the Government to pass.
Superannuation
Superannuation, or “super”, is money set aside for retirement from your pay. In most instances, this money can’t be accessed until you turn 60.
Every employer in Australia is legally required to make super contributions on behalf of their staff.
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Super funds are designed to ensure retired Australians can support themselves, to avoid increased strain on the welfare system (which manages income support payments like the aged pension).
Bill
Hume’s bill would let partners split their superannuation savings with no additional tax.
Currently, people can claim tax rebates for contributions to their partner’s super funds in specific circumstances.
Under Hume’s bill, people wouldn’t be able to transfer more than $2 million into their partner’s super account.
An explanatory note attached to the bill says it is “a simple and voluntary mechanism for fairness… designed to tackle one of the most persistent and unfair challenges in our superannuation system: the gender super gap.”
The bill now needs to be debated by the Government and minor parties in the Senate.
