SuperWrap now offers splitting
Advisers can now make contribution splitting available to clients within the BT SuperWrap platform, thanks to recent product changes announced by BT Financial Group.
Contribution splitting, which allows superannuation fund members to split certain contributions with an eligible spouse, is now supported by BT’s SuperWrap Personal Super Plan and Personal Super Plan Essentials products.
Despite changes announced in the Federal Budget potentially diminishing the tax advantages of contribution splitting, BT head of technical Sue Merriman said there are still circumstances where it can be of benefit.
She explained that members retiring before July 1, 2007, might benefit from splitting contributions now, while those retiring and taking a benefit after this date, but before age 60, can also take advantage of splitting contributions with an eligible spouse.
“Splitting contributions now may also be seen as mitigating the risk of legislative changes down the track,” Merriman said. “Clients and advisers alike recognise that future Governments always have the option of changing the rules.”
Both taxed and untaxed superannuation contributions can be split between spouses. Taxed contributions include employer contributions and personal contributions, for which the member intends to claim a tax deduction, while untaxed contributions are personal undeducted contributions and Government co-contributions.
Up to 85 per cent of taxed and 100 per cent of untaxed contributions can be split with an eligible spouse.
This latest change comes after other additions to the BT Wrap in the last six months, including online corporate actions and initial public offerings, the ability to transfer UK pensions in response to new UK legislation, the addition of a do-it-yourself administration service and six new investment fund choices in Wrap Essentials.
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