Spouse Super Contributions Australia: Tax Offset and How Super Splitting Works
Many Australian couples retire with dramatically unequal super balances — particularly where one partner took time out of the workforce for caring responsibilities. Two ATO-approved mechanisms fix this: spouse contributions (you contribute post-tax money to your partner's super and receive a tax offset) and super splitting (you redirect your own concessional contributions into your partner's fund). Both strategies can equalise balances, reduce tax, and improve retirement outcomes for the lower-earning partner.
Spouse Contributions: How They Work
A spouse contribution is a non-concessional (after-tax) contribution made directly to your spouse's or de facto partner's super fund from your own post-tax money. In return, you receive an 18% tax offset on contributions up to $3,000 — a maximum offset of $540.
The offset is available when your spouse's total income (including reportable fringe benefits and reportable employer super contributions) is below $40,000. The full $540 offset applies when spouse income is below $37,000. The offset phases out at $1 reduction for every $3 of income above $37,000, reaching zero at $40,000.
| Spouse income | Max contribution for offset | Tax offset |
|---|---|---|
| Under $37,000 | $3,000 | $540 |
| $38,000 | $2,000 | $360 |
| $39,000 | $1,000 | $180 |
| $40,000+ | $0 | $0 |
You can contribute more than $3,000 to your spouse's super — amounts above $3,000 count toward their non-concessional cap but do not attract the tax offset. The maximum non-concessional contribution to a spouse's account in a given year follows normal NCC rules.
Who Benefits From Spouse Contributions?
The spouse contribution tax offset is most valuable for couples where one partner earns under $37,000 per year. This commonly includes: a partner on parental leave or a career break, a partner working part-time, a partner in early retirement, or couples nearing retirement who want to equalise balances before the pension phase.
The $540 maximum offset is modest — but it is a guaranteed, immediate 18% return on $3,000. There is no investment with an equivalent risk-free return. Combined with the compounding growth inside super over many years, the long-term benefit is substantially greater than $540.
Super Splitting: A Different Mechanism
Super splitting works differently from spouse contributions. Instead of contributing new money to your spouse's fund, you redirect a portion of your own concessional contributions (employer SG + salary sacrifice + personal deductible contributions) to your spouse's super account.
You can split up to 85% of your concessional contributions each year (the remaining 15% represents the contributions tax already paid at the fund level). Super splitting is applied by request after the end of the financial year — you cannot split in real time. You must apply by June 30 of the following financial year.
For example: if your total concessional contributions in 2025-26 were $30,000 (the cap), you can split up to 85% = $25,500 into your spouse's fund. Your balance decreases by $25,500; your spouse's increases by $25,500.
Why Equalise Super Balances?
Earlier access to super: If one partner is older, redirecting contributions to the younger partner can delay the date when combined super must be drawn down, preserving the tax-free pension phase longer.
Age Pension optimisation: The Age Pension assets test applies per-person thresholds. Equalising balances can mean both partners stay under individual thresholds rather than one partner having excess assets.
Transfer balance cap: Each person has a $1.9 million transfer balance cap on moving super into the tax-free pension phase. Splitting ensures both partners' balances are positioned to use their individual caps fully.
Estate planning: Death benefits paid from super to a financially independent adult child are taxed. Equalising balances and converting to pension phase can reduce the super estate.
Frequently Asked Questions
- Does my spouse need to be under preservation age to receive split contributions?
- No. However, if your spouse has already met a condition of release (retired, reached 65), the split contribution may be immediately accessible to them. If they are under preservation age, the split amount is preserved in their fund until they meet a condition of release.
- Can I claim a tax deduction for spouse contributions?
- No. Spouse contributions are non-concessional — made from after-tax money. You receive an 18% tax offset (not a deduction) on up to $3,000. The offset reduces your tax payable dollar for dollar, unlike a deduction which reduces your taxable income.
- Does super splitting count toward my concessional contributions cap?
- No. Super splitting is a movement of already-counted contributions between accounts. The concessional contributions tax was already paid when the contribution was made to your fund. Splitting does not re-trigger the cap or any additional tax.
