Super Contribution Splitting: The Game-Changing Strategy for Couples

Most couples in Australia have never even heard of this strategy, but it can help you retire early, save tax, and even boost your Age Pension entitlements. And the best part? It's not about contributing more money; it's about being smarter with what you already have.

This little-known strategy is called contribution splitting. Once you understand how it works, it can completely change how you approach managing your superannuation as a couple.

Disclaimer: This information is for educational purposes only and is not financial advice. Superannuation and tax rules are complex. Please seek professional advice before making any financial decisions.

What is Super Contribution Splitting?

Contribution splitting is a strategy that allows you to transfer a portion of your own super contributions into your spouse's superannuation account. You can find the full rules on the ATO website.

Here’s how the basic mechanics work:

• What you can split: You can only split concessional contributions. This includes your employer's Super Guarantee payments, any salary sacrifice you make, and any personal contributions for which you claim a tax deduction.
• How much you can split: You can split up to 85% of your concessional contributions from a financial year.
• Who you can split with: The definition of a "spouse" for this strategy is broad and includes a person of any gender who you are legally married to, in a registered relationship with, or living with on a genuine domestic basis.

It's important to understand this is not the same as making a direct "spouse contribution." This is about transferring a portion of the contributions that have already been made into your own super account over to your partner.

Example: How Splitting Works in Practice

Let's look at a couple, John and Emily. In FY25, John had $30,000 in total concessional contributions paid into his super fund. In the next financial year, John can apply to split up to 85% of that amount—or $25,500—and have it transferred directly into Emily's super account.

The Rules: Eligibility, Timing, and How to Apply

Before you can use this strategy, there are some important rules you need to know.

Who is Eligible?

There are no age or work requirements for the spouse who is making the split. However, at the time the split request is made, the receiving spouse must be either:

• Under their preservation age, OR
• Between their preservation age and 65 years old and not yet retired.

Timing Your Application

You can only apply for contribution splitting once per financial year. The application you make can only be for concessional contributions made in the previous financial year. For example, to split your FY25 contributions, you will need to wait and apply in the 2026 financial year.

The only exception is if you are effectively closing your super account (for example, by rolling over to another fund or starting a pension). In this case, you can apply to split contributions from both the previous year and the current year before the account is closed.

The Application Process

1. Check with your fund: First, confirm that your super fund allows contribution splitting, as it's a voluntary service for them to offer.
2. Use the right form: Some funds accept the standard ATO form, while others (like AustralianSuper) require you to use their own specific version.
3. Complete the details: You’ll need to provide both your and your spouse's personal and super account details, and specify the exact amount you wish to split.

How Contribution Splitting Affects Your Contribution Caps

This is a critical point to understand. Even though the money is moved into your spouse's account, the full amount of the contribution still counts towards the contributing spouse's concessional cap for the year the contribution was originally made.

Splitting does not create extra contribution room. It simply reallocates where the money is held. The transferred amount becomes part of the receiving spouse's taxable component and is added to their total super balance.

Power Move: Combining Contribution Splitting with the Carry-Forward Rule

You can amplify the power of this strategy by combining it with the carry-forward concessional contribution rule.

Example: Daniel's Carry-Forward and Split

Daniel is self-employed and his total super balance is under $500,000, making him eligible to use the carry-forward rule. In FY25, he makes a large personal deductible contribution of $112,500 to his super fund using his unused caps from the previous five years.

Then, in FY26, he applies to split this contribution. His fund accepts the application, and $95,625 (85% of his contribution) is transferred into his spouse Jane's super account. This is a significant amount—far more than he could have split if he hadn't first used the carry-forward rule.

3 Powerful Reasons for Couples to Use Contribution Splitting

By strategically managing your super balances as a couple, you can unlock a range of powerful benefits. Here are the three most common reasons to use this strategy:

1. Early Access to Super: If there is a significant age gap between partners, moving super to the older spouse can give the couple earlier access to their retirement savings, since the older spouse will reach their preservation age sooner.
2. Boost Your Age Pension: If one spouse is nearing Age Pension age, you can strategically shift super into the younger spouse's accumulation account. Because super in accumulation phase for someone under Age Pension age is not counted by Centrelink's assets test, this can reduce your combined assessable assets and potentially boost your pension entitlements.
3. Manage the Transfer Balance Cap: The transfer balance cap limits how much you can move into a tax-free retirement pension (this is $1.9 million in FY25 and rises to $2 million in FY26). If one spouse's super balance is approaching this cap, splitting contributions to the other spouse helps to even out your balances, avoid exceeding the cap, and maximize your overall retirement savings.