Though called contributions splitting this doesn’t accurately describe the transaction. Instead of what people may consider ‘splitting’ to mean, the contribution is still treated as received by the contributing super fund member and there is then a rollover from the splitting member to the spouse.
It is important to note that contributions split count against the contributions cap of the splitting member, so contributions splitting can’t be used to reduce excess contributions tax.
The superannuation co-contribution is a super contribution from the government to encourage people to make additional personal superannuation contributions, which have not been claimed as a tax deduction. For the 2014/15 financial year the maximum government superannuation co-contribution is $500 for a $1,000 eligible contribution.
The superannuation co-contribution first applied in the 2003/04 financial year. In that year the co-contribution was set at 100% matching up to $1,000 – that is, if someone made a $1,000 personal non-concessional contribution and met the other requirements the government would pay another $1,000 into their super fund. For 2004/05, and running to 2008/09, this was increased to 150% up to a maximum of $1,500 – a $1,000 contribution would receive $1,500 in co-contribution. However this was decreased to 100% and $1,000 from 2009/10 and then further to 50% and $500 from 2012/13.
In order for an individual to claim a tax deduction for a personal superannuation contribution a Notice of Intent to Claim must be submitted to their super fund.
The notice of intent to claim requirement is created by section 290.170 of the ITAA 1997, which says that:
You must give to the trustee of the fund or the RSA provider a valid notice, in the approved form, of your intention to claim the deduction.
Hence the notice of intent to claim is sometimes called a s290.170, or section 290, notice.