Contributing to a spouse’s super or splitting super contributions is a strategy used by couples to even up their superannuation balances, reduce the risk of one partner retiring with insufficient super, and potentially access tax benefits. Two main mechanisms exist: the spouse contribution tax offset and super contribution splitting.
Spouse Contribution Tax Offset
If you contribute to your spouse’s super fund and your spouse earns a low income, you may be eligible for a tax offset of up to $540 on your personal income tax.
Eligibility
| Condition | Requirement |
|---|---|
| Spouse’s income | Below $40,000 (assessable income + reportable fringe benefits + reportable employer super) |
| Contribution type | Non-concessional (after-tax) contribution made into spouse’s fund |
| Relationship | Married or de facto (same or opposite sex) |
| Spouse’s age | Under 75 and not holding a temporary visa |
How the Offset Works
- You contribute after-tax money to your spouse’s super fund (not your own)
- You claim an 18% tax offset on contributions up to $3,000
- Maximum offset: 18% × $3,000 = $540 (when spouse earns $37,000 or less)
- The offset phases out as spouse income rises from $37,000 to $40,000 — zero offset above $40,000
Example: Spouse earns $25,000 (e.g., works part-time). You contribute $3,000 to their super. Tax offset = $540 on your personal tax return.
The contribution:
- Enters the spouse’s fund as a non-concessional contribution (counts toward their $120,000 NCC cap)
- Is not deductible from your income (it’s an offset, not a deduction)
- Does not count toward your own NCC cap
Super Contribution Splitting
Contribution splitting allows you to transfer up to 85% of your concessional contributions from your super account to your spouse’s account (or your own accumulation account in a second fund). It is processed in the year after contributions are made.
Purpose of Contribution Splitting
- Equalise super balances between partners — important when one earns significantly more
- Maximise the amount that can be transferred to pension phase (each partner has a $1.9 million transfer balance cap)
- Help a lower-balance spouse reach the Age Pension-qualifying threshold sooner (in certain scenarios)
How Contribution Splitting Works
- Request a contribution split from your super fund (after the end of the financial year in which contributions were made)
- The fund transfers up to 85% of the prior year’s concessional contributions into your spouse’s accumulation account
- The split amount retains its concessional character in the receiving spouse’s account
Example: You salary sacrifice $20,000 in FY2025–26. In FY2026–27, you apply to split 85% ($17,000) to your spouse’s super fund.
Conditions for Contribution Splitting
- Receiving spouse must be under preservation age — OR — if between preservation age and 65, must not have retired
- Split amounts count toward the receiving spouse’s concessional cap for the year of transfer (not your cap)
Why Equalising Super Balances Matters
Unequal super balances at retirement are common — particularly in couples where one partner took time out of the workforce for caring responsibilities. Equalising balances helps:
- Maximise transfer balance cap usage: Each person can transfer up to $1.9 million into a tax-free pension account. Two equal accounts of $1.9m each = $3.8m tax-free; one partner with $3.8m can only transfer $1.9m
- Improve Age Pension entitlements: Super accumulation is assessed in the assets test — more equal distribution may affect Age Pension calculation differently depending on ages
- Reduce overall household tax: Lower super balances may benefit from the 15% super tax rate on contributions
Related Articles
- Non-Concessional Contributions Australia
- Concessional Contributions Australia
- Super Contribution Limits Australia
- Retirement Investing hub
Frequently Asked Questions
Can I contribute to my spouse’s super if they are retired? If your spouse is under 75 and has not yet retired (not over preservation age and retired), they can receive contributions. If your spouse has fully retired and is past preservation age, they generally cannot receive contributions. The rules are complex — verify with your super fund.
Does a spouse contribution count toward my cap or their cap? Spouse contributions (non-concessional) count toward the receiving spouse’s non-concessional cap — not yours. Contribution splitting amounts count toward the receiving spouse’s concessional cap.
Is the spouse contribution tax offset worth claiming? Yes — if your spouse earns under $40,000, contributing $3,000 to their super gives you a $540 tax offset at essentially no extra cost (the money is going to super regardless). It is free money for eligible couples.
This article provides general financial information only. For advice tailored to your situation, speak with a licensed financial adviser through the ASIC financial advisers register or MoneySmart.