Super contribution splitting allows you to transfer up to 85% of your concessional (before-tax) contributions from the previous financial year into your spouse's super account. This doesn't give you a tax deduction, but it's a powerful strategy for equalising super balances between partners — which can reduce tax on death benefits and increase Age Pension entitlements.
How contribution splitting works
- During a financial year, your concessional contributions (SG, salary sacrifice, personal deductible) go into your super as normal
- After 30 June (or when you leave the fund), you apply to split up to 85% of those concessional contributions to your spouse
- Your fund transfers the split amount from your account to your spouse's account (same fund or different fund)
- The split contributions count as your spouse's super balance going forward
Why bother splitting?
1. Optimise Age Pension entitlements
The assets test thresholds for couples are not simply double the single thresholds. By equalising super balances, a couple can potentially optimise their combined pension outcome — especially where one partner has significantly more super than the other.
2. Reduce death benefit tax
If one partner dies and their super is paid to a non-tax dependant (e.g. an adult child), the taxable component is taxed at up to 17%. By splitting contributions to the lower-balance spouse over time, you reduce the total taxable component concentrated in one person's account. See our death benefit tax guide.
3. Access super earlier
If one spouse is younger and the other has reached preservation age, splitting contributions to the older spouse allows earlier access to some super through a TTR pension.
Limits and rules
| Rule | Detail |
|---|---|
| Maximum split | 85% of concessional contributions from the previous financial year |
| Concessional cap impact | Split contributions count against your cap, not your spouse's |
| Spouse age limit | Under 65, and if between preservation age and 65, must not have retired |
| Application timing | After 30 June for the previous year's contributions, or when leaving the fund |
| Tax on split amount | No additional tax on the transfer |
Splitting vs spouse contributions
Don't confuse contribution splitting with spouse contributions. They're different strategies:
- Contribution splitting: Transfers your own concessional contributions to your spouse's account. No direct tax benefit for you.
- Spouse contributions: You make a non-concessional contribution directly into your spouse's super. You may receive a tax offset of up to $540 if your spouse earns under $40,000.
Both strategies help build your spouse's balance — use them together for maximum effect.
How to apply
- Contact your super fund and request a Contributions Splitting Application form
- Complete the form specifying the amount you wish to split (up to 85% of prior year concessional contributions)
- Provide your spouse's super fund details (if splitting to a different fund)
- Submit the form — the fund processes the transfer, usually within a few weeks