Tasplan is one of the first superannuation funds to announce its intention to provide contribution - splitting for members.

As the name implies, Tasplan members will be able to request the transfer of amounts of super contributed on their behalf into the super account of their spouse or defacto partner.

So-called 'splittable contributions' are those made (either employer or personal) from 1 January 2006.

Tasplan General Manager Neil Cassidy said the fund was committed to providing members with a maximum level of flexibility in their planning for retirement.

According to Cassidy, the Federal Government's objectives in making contribution-splitting available are;-

• To provide single income couples, including those not able to make voluntary contributions, with access to two ETP low-rate thresholds and two RBLs in the same way as dual income families; and
• To provide low income or non-working spouses with their own superannuation assets under their own control and their own income in retirement.

"By contribution-splitting a couple may be able to 'optimise' their retirement outcome by paying less tax on their nest egg." Cassidy said.

If a member has a significant amount of super which is likely to exceed the threshold beyond which a higher rate of tax is payable (ie: the lump sum retirement benefit limit or RBL - it's currently $648,946) moving super to a partner's account (where there is a lower balance) may mean that less tax will be paid.

Cassidy emphasised that any benefit of the new initiative would depend on the individual circumstances of couples and was not going to be relevant to everyone.

He said that many of those Tasplan members contemplating contribution-splitting were likely to take advantage of Tasplan's free financial planning service before taking any action.