Super Contribution Splitting: How Couples Can Balance Their Retirement
If you're in a relationship where one person earns significantly more than the other, you've probably noticed a problem: their super balance is growing while yours sits still. Or vice versa.
Career breaks, part-time work, caring for kids or elderly parents—life happens. But super doesn't care about your reasons. It just compounds for whoever's getting the contributions.
Here's the thing most couples don't know: you can transfer part of your super contributions to your spouse's account. It's called contribution splitting, and it's one of the quieter strategies in the super system. Done right, it can balance your retirement savings, reduce tax, and make sure both partners are set up—not just the one with the bigger salary.
Let's break down how it actually works.
What Is Contribution Splitting?
Super contribution splitting lets you transfer up to 85% of your concessional (before-tax) contributions to your spouse's super account.
Concessional contributions include:
- Employer contributions (including super guarantee)
- Salary sacrifice contributions
- Personal contributions you've claimed a tax deduction on
The money has already entered your super. You're just redirecting part of it to your partner's account instead.
This is different from a spouse contribution, where you put your own after-tax money into your partner's super (and potentially get a tax offset). Contribution splitting moves money that's already in the super system.
Why Would You Do This?
Three main reasons:
1. Balance Your Retirement Savings
If one partner has been out of the workforce—studying, caring for kids, dealing with illness—their super balance falls behind. Contribution splitting helps close that gap.
Example: Emily took five years off to raise their kids. Her partner Max kept working, and his super balance is now $180,000 more than hers. By splitting Max's contributions each year, they can start rebalancing—so retirement doesn't leave one partner significantly worse off.
2. Reduce Tax on Super Payouts
If one partner is older and closer to accessing their super, there can be tax advantages to building up the younger partner's balance instead.
Example: Mike is 62 and planning to retire soon. His wife Lisa is 55 with a smaller super balance. By splitting Mike's contributions to Lisa's account, those funds have more time to grow tax-free before she accesses them. And when Lisa eventually draws down, she may be in a lower tax position.
3. Access Super Earlier (In Some Cases)
If one partner reaches preservation age before the other, having more balanced super means the younger partner isn't left waiting with nothing accessible.
Who's Eligible?
The rules are straightforward but strict:
| Requirement | Details |
|---|---|
| Relationship | You can only split with a spouse or de facto partner |
| Receiving spouse's age | Must be under 65, and if over preservation age, not yet retired |
| Residency | Both partners generally need to be Australian residents for tax purposes |
| Fund rules | Not all super funds offer splitting—check with yours first |
The trap: If your partner is over preservation age and retired, you can't split to them. The system assumes they'd just withdraw it immediately.
How Much Can You Split?
You can split up to 85% of your concessional contributions from the previous financial year.
For 2024-25, the concessional contributions cap is $30,000. So the maximum you could split is $25,500 (85% of $30,000).
Important: You can only split contributions that have already been made and reported to the ATO. Most funds require you to apply in the financial year after the contributions were made, though some allow same-year splitting.
How to Actually Do It
Step 1: Check Your Fund's Policy
Not all super funds offer contribution splitting. Before you plan anything, confirm your fund allows it and get their application form.
Step 2: Confirm Eligibility
Make sure both you and your partner meet the age, employment, and residency criteria. Don't assume—check.
Step 3: Decide the Amount
You can split up to 85% of your concessional contributions. Decide what makes sense for your situation—it doesn't have to be the maximum.
Step 4: Complete the Application
Your fund will have a specific form. You'll typically need:
- Your tax file number
- Your spouse's tax file number
- The amount you want to split
- Your spouse's super fund details (if different from yours)
Step 5: Submit Before the Deadline
Each fund sets its own deadline. Miss it, and you wait another year. Set a calendar reminder.
Step 6: Wait for Confirmation
The fund will process your application and confirm when the split is complete. The money moves from your account to your spouse's.
Real Examples
Tom and Laura: The Career Break
Laura, a marketing manager, takes two years off to complete a masters degree. Her partner Tom, an engineer, keeps working. His super grows by $50,000 over those two years while Laura's sits flat.
They decide to split Tom's contributions during Laura's study period. Each year, Tom splits 85% of his $25,000 in contributions—about $21,250—to Laura's account. After two years, Laura's super is $42,500 higher than it would have been.
When Laura returns to work, they stop splitting. The gap is smaller, and both retire with more balanced savings.
Mia and Ethan: The Age Gap
Ethan is 60 and planning to retire at 62. Mia is 55 with a smaller super balance. If Ethan keeps all his contributions, he'll have plenty—but Mia will be playing catch-up for years.
They split Ethan's contributions to Mia's account for five years. This builds her balance faster, and the money has more time to compound before she accesses it. When Mia eventually retires, she has a more substantial balance—and the family's total super is in better shape.
Common Mistakes
1. Confusing Splitting with Spouse Contributions
They're different strategies:
| Strategy | How It Works | Tax Benefit |
|---|---|---|
| Contribution splitting | Transfer before-tax contributions already in your super to your spouse | Balances retirement savings; potential tax benefits on withdrawal |
| Spouse contribution | Contribute your after-tax money directly to your spouse's super | Up to $540 tax offset if spouse earns under $40,000 |
You can do both—but they serve different purposes.
2. Missing the Deadline
Each fund has its own cut-off date. Some require applications by the end of the same financial year; others give you until the end of the following year. Miss it, and you've lost that year's opportunity.
3. Assuming Your Partner Is Eligible
The age and retirement rules catch people out. If your spouse is over preservation age and has already retired, splitting isn't available. Check eligibility before you plan your strategy.
4. Not Checking Your Fund's Policy
Some funds don't offer splitting at all. Others have specific forms and processes. Don't assume—call them or check online first.
Is It Worth It?
Contribution splitting isn't for everyone. It makes most sense when:
- One partner has significantly lower super due to career breaks, part-time work, or lower income
- There's an age gap and you want to maximise the younger partner's balance
- You're thinking long-term about how you'll both access super in retirement
If both partners have similar incomes and super balances, there's less benefit. But if there's an imbalance—and there often is—this is one of the simplest ways to address it.
The paperwork takes an hour. The impact compounds for decades.
What to Do Now
- Check your super balances — Log into both accounts and see where you stand as a couple
- Confirm your fund offers splitting — Not all do; check before planning
- Review eligibility — Make sure your partner meets the age and retirement criteria
- Set a calendar reminder — Deadlines vary by fund; don't miss yours
- Consider the bigger picture — Contribution splitting is one tool; it works best as part of an overall retirement strategy
The Bottom Line
Super contribution splitting is one of those strategies that sounds complicated but isn't. You're moving money that's already in the super system from one partner's account to the other's. The benefit? More balanced retirement savings, potential tax advantages, and a fairer outcome for both of you.
If one partner has fallen behind on super—for any reason—this is one of the simplest ways to start catching up. The application takes an hour. The compounding lasts a lifetime.
Talk to your partner about where your balances stand. If there's a gap, contribution splitting might be exactly what you need.
Sources & Further Reading
Disclaimer: This article is general information only and does not constitute financial advice. Superannuation rules are complex and individual circumstances vary. Before making decisions about contribution splitting, consult with a qualified financial adviser familiar with your situation.
