Why consider contribution splitting?
Superannuation contribution splitting offers couples a practical strategy to balance retirement savings between partners. This approach is particularly valuable in addressing the persistent gender superannuation gap in Australia, where women aged 50 to 60 have average balances 21.6% lower than men in the same age bracket.
Even if your situation doesn’t reflect these statistics, balancing superannuation between partners can provide significant financial advantages and greater flexibility in retirement planning.
What is superannuation contribution splitting?
Superannuation contribution splitting allows you to transfer a portion of your super contributions from the previous financial year to your spouse’s superannuation account. When implemented annually, this strategy can gradually equalise your account balances over time.
Who can benefit from contribution splitting?
Contribution splitting can be particularly advantageous for:
- couples where one partner has taken career breaks or worked part-time to manage family responsibilities;
- couples planning to optimise their position regarding the $2 million transfer balance cap (the maximum amount you can move into a tax-free pension in retirement);
- partners with significantly different retirement timelines – one spouse may want to access benefits earlier, or you may want to maximise age pension entitlements. By managing the balance of super between you, you may be able to achieve a better outcome.
Eligibility requirements
To use contribution splitting:
- your spouse must be under age 65;
- if your spouse is aged 60 to 65, they must not have met a condition of release (such as retirement after age 60);
- you must have made eligible contributions to your super during the previous financial year; and
- your super fund must offer this service (most do, but it’s worth confirming).
For these purposes, “spouse” includes married partners and de facto partners (of any sex) living together on a genuine domestic basis.
What contributions can be split?
You can split up to 85% of your “taxable contributions” from the previous financial year, including:
- employer superannuation guarantee contributions;
- salary sacrifice contributions; and
- personal contributions for which you are claiming a tax deduction (you need to notify your fund of your intention to claim before you apply to split contributions).
Members of untaxed schemes can split up to 100% of “untaxed splittable employer contributions” from government employers.
The total amount split cannot exceed the concessional contributions cap ($30,000 for 2024–2025).
Practical example
Trent and Alex have been in a de facto relationship for five years. During the 2024–2025 financial year, Trent received $12,000 in superannuation guarantee contributions from his employer. From 1 July 2025, Trent can apply to split up to $10,200 (85% of $12,000) to Alex’s super account.
These contributions will still count towards Trent’s concessional contributions cap for 2024–2025 but won’t affect any of Alex’s contribution caps.
How to implement contribution splitting
- Timing: You can split contributions made in 2024–2025 between 1 July 2025 and 30 June 2026. Only one split is permitted annually.
- Process: Contact your superannuation fund to confirm they offer this service and request a “Superannuation contributions splitting application form”. This form is also available from the ATO’s website.
- Submission: Complete the form and submit it to your superannuation fund (not the ATO).
Taking action
Contribution splitting represents a practical step towards achieving more balanced retirement savings for couples. It offers a tangible way to recognise the value of unpaid work and ensure both partners can enjoy financial security in retirement.
For personalised advice on how contribution splitting could benefit your specific circumstances, consult with your financial adviser or tax professional. For additional information, visit the ATO website at www.ato.gov.au and search for QC19312.
