Spouse Super Contributions Explained — Tax Offset and Balance Equalisation

A spouse super contribution is a personal after-tax contribution you make directly into your partner’s super fund. It is one of the more straightforward ways to help a spouse build retirement savings — and if your spouse’s income is below $40,000, you may also be entitled to a tax offset of up to $540 on your own tax return.

Spouse contributions are also a useful long-term strategy for equalising super balances between partners, which can be beneficial for Age Pension planning and estate outcomes.

How Spouse Contributions Work

You transfer money from your bank account into your spouse’s super fund. The contribution:

• Counts toward your spouse’s non-concessional contributions (NCC) cap — not yours
• Enters your spouse’s fund as part of their tax-free component
• Is made from your after-tax income — no tax is deducted when it enters the fund
• Does not attract concessional tax treatment — there is no deduction available to you for a spouse contribution

The contributing spouse does not get a tax deduction. The benefit comes from the spouse tax offset (if eligible) and the long-term compounding advantage of building the lower-balance partner’s super.

The Spouse Super Tax Offset

If your spouse’s income is below $40,000, you may be entitled to claim a tax offset of up to $540 in your own tax return for contributions you make into their super.

The offset is calculated as 18% of the lesser of:

• Your eligible spouse contributions for the year, or
• $3,000 (reduced by $1 for every $1 of spouse income above $37,000)

Tax Offset by Spouse Income

To receive the full $540 offset, your spouse must earn $37,000 or less and you must contribute at least $3,000 to their super in the financial year.

What Counts as “Income” for the Spouse Test?

The spouse’s income used for the offset test is their total income for surcharge purposes, which includes:

• Taxable income
• Reportable fringe benefits
• Total net investment loss
• Reportable employer super contributions (salary sacrifice)

This means if your spouse salary sacrifices into super, those amounts count toward their income for the purposes of the $40,000 threshold.

Eligibility Requirements

To claim the spouse super tax offset:

• You and your spouse must be married or in a de facto relationship at the time of contribution
• You must both be Australian residents for tax purposes
• Your spouse must be under age 75 at the time of contribution
• Your spouse’s total income for surcharge purposes must be below $40,000
• The contribution must be made to a complying super fund in your spouse’s name
• Your spouse’s total super balance must be below the general transfer balance cap ($2.0 million for FY2025–26) — otherwise no NCCs are permitted
• Your spouse must not have exceeded their NCC cap for the year

You do not need to be the sole income earner to make spouse contributions. Even if both partners work, the contributing spouse can still make contributions into the lower-earning partner’s fund.

How to Make a Spouse Contribution

1. Get your spouse’s fund details — fund name, BSB, account number, and your spouse’s member number
2. Transfer funds from your bank account to your spouse’s super fund using their member number as the reference
3. Check with the fund how they identify spouse contributions versus personal contributions — some funds require a specific form or reference code
4. At tax time, claim the offset in your individual tax return under “Super — spouse contributions”
5. Keep a record of the contribution — your fund or your spouse’s fund statement will confirm the deposit

The offset is claimed by the contributing spouse in their own return — not the spouse who received the contribution.

Spouse Contributions and Balance Equalisation

Beyond the tax offset, spouse contributions serve a broader strategic purpose: equalising super balances between partners.

Unequal balances are common in Australian households — particularly in couples where one partner has taken time off for caring responsibilities, worked part-time, or had lower wages. The financial consequences of this imbalance compound over decades.

Equalising balances between spouses can be beneficial because:

• Age Pension assets test — when one partner is below Age Pension age, only the older partner’s super balance is assessed. Shifting more super to the younger partner can temporarily reduce assessed assets.
• Withdrawal tax — both partners can each draw down tax-free in retirement, effectively doubling the amount sheltered from tax. A single large super account is less tax-efficient at withdrawal than two moderate ones.
• Estate planning — a larger tax-free component in the lower-earning spouse’s account can reduce tax on death benefits paid to non-dependants.

Contribution Splitting as an Alternative

Rather than making new after-tax contributions, you can also split up to 85% of your own concessional contributions into your spouse’s super fund after the end of each financial year. Contribution splitting does not attract the tax offset but can achieve balance equalisation using money already being contributed concessionally.

Both strategies — spouse contributions and contribution splitting — can be used in the same year.

What Counts Toward the NCC Cap

Spouse contributions count toward the receiving spouse’s NCC cap. This means:

• The receiving spouse’s total super balance must be below $2.0 million (FY2025–26) to accept NCCs
• Spouse contributions plus any other personal after-tax contributions the receiving spouse makes in the same year must not exceed the $120,000 annual NCC cap
• The receiving spouse’s bring-forward rule applies if multiple years’ worth is being contributed

The contributing spouse’s NCC cap is not affected by spouse contributions.

Frequently Asked Questions

Can same-sex couples use spouse contributions? Yes. “Spouse” in superannuation law includes both married and de facto partners, and covers same-sex relationships. The tax offset and all rules apply equally.

Is there a limit on how much I can contribute to my spouse’s super? There is no specific spouse contribution limit — the limit is your spouse’s NCC cap ($120,000 for FY2025–26, or up to $360,000 under the bring-forward rule if eligible). The tax offset only applies to the first $3,000 contributed, but you can contribute more.

Can I contribute to my spouse’s super if they are retired? It depends on your spouse’s age. If your spouse is under 75, you can generally make NCCs to their fund (provided they don’t exceed their NCC cap and their TSB is below $2 million). If your spouse is 75 or over, voluntary NCCs are not permitted. Note also that once a member has fully retired and meets a condition of release, their fund may be in retirement phase — contributions rules still apply to the accumulation account.

What if my spouse already has a large super balance? If your spouse’s total super balance is at or above $2.0 million at 30 June of the prior year, they cannot accept non-concessional contributions — and spouse contributions are NCCs. In that case, spouse contributions are not possible. Contribution splitting (of concessional contributions) may still be available, depending on the fund rules.

Does the spouse contribution affect my spouse’s Centrelink payments? A larger super balance may affect Centrelink means-tested payments once your spouse reaches Age Pension age. Super in accumulation phase is generally not assessed for people below Age Pension age. The actual impact depends on your spouse’s specific circumstances — contact Services Australia for guidance.

See also: Super Contributions. For advice tailored to your situation, speak with a licensed financial adviser. You can find one through the ASIC financial advisers register or MoneySmart.