Spouse contributions are one of the most practical tools for addressing the gender superannuation gap. They allow a higher-earning partner to contribute to the super of a lower-earning spouse — helping to equalise retirement savings, reduce tax, and build both partners’ long-term financial security.
How Spouse Contributions Work
A spouse contribution is an after-tax (non-concessional) contribution that one partner makes directly into the other’s super account:
- The contributing spouse transfers funds from their bank account to the receiving spouse’s super fund
- The contribution counts toward the receiving spouse’s non-concessional contribution (NCC) cap ($120,000/year)
- The contributing spouse may be eligible for a tax offset
The Spouse Contribution Tax Offset
If the receiving spouse’s income is below $40,000, the contributing spouse can claim a tax offset of up to $540:
| Receiving spouse income | Offset available |
|---|---|
| $37,000 or less | Up to $540 (18% of up to $3,000 in contributions) |
| $37,001–$40,000 | Reduced proportionally |
| Over $40,000 | No offset |
Example:
- Receiving spouse earns $20,000 (part-time work)
- Contributing spouse contributes $3,000 into receiving spouse’s super
- Contributing spouse claims $540 offset on their tax return (via myTax or tax agent)
The contribution itself can be more than $3,000 — the tax offset only applies to the first $3,000.
Eligibility Conditions
For the spouse contribution tax offset:
- Both must be Australian residents
- The receiving spouse must be under 75 (no work test required for receiving NCC contributions from a spouse)
- The contributing spouse makes the contribution to a complying super fund
- The couple is married or de facto (including same-sex)
- They are not living separately and apart on a permanent basis
Beyond the Tax Offset: Equalising Super
Even without the tax offset (if the receiving spouse earns over $40,000), spouse contributions remain valuable for:
- Super splitting at retirement: Both partners having more balanced super balances can reduce tax when drawing down in retirement (both using tax-free caps rather than one partner holding all the super)
- Transfer Balance Cap management: If one partner approaches the TBC ($1.9M), having more super in the other partner’s account allows more to be in pension phase
Spouse Contributions vs Super Splitting
These are two different mechanisms:
| Feature | Spouse contribution | Super splitting |
|---|---|---|
| What happens | Contributing spouse pays money into receiving spouse’s fund | Member splits up to 85% of concessional contributions each year to spouse’s fund |
| Source of funds | After-tax money (bank account) | Your own concessional contributions (super) |
| Tax offset | Yes (if income < $40,000) | No |
| NCC cap usage | Counts toward receiving spouse’s NCC cap | Does not count toward NCC cap |
| When useful | Topping up spouse’s super from savings | Redistributing existing super more evenly |
How to Make a Spouse Contribution
- Obtain your spouse’s super fund details (BSB, account number, member number, or BPAY details)
- Transfer the funds via bank transfer or BPAY, following the fund’s spouse contribution process
- The fund records the contribution as a spouse contribution (not a personal contribution)
- At tax time, claim the spouse contribution offset in your tax return (Item D11 in myTax)
For more: Super for Stay-at-Home Parents, The Gender Super Gap, Boost Super as a Woman. For advice tailored to your situation, speak with a licensed financial adviser via MoneySmart.