Superannuation is held in individual names, which means couples often end up with very lopsided balances — typically because one partner took time out of work to raise children or care for family. Two rules exist to help couples rebalance: spouse contributions, which can earn the contributing partner a tax offset, and contribution splitting, which lets one partner move some of their own contributions across to the other. Used together, they can improve a couple’s overall tax position and retirement outcome.
This guide explains both, with examples, and where each fits. It sits under our overview of how superannuation works in Australia and connects to the contribution caps that govern them.
Why Couples Bother Balancing Super
There are several good reasons to even out two super balances rather than let one grow far larger than the other:
- Two transfer balance caps. Each person can hold their own tax-free retirement pension up to the general transfer balance cap ($2.1 million for 2026–27). A couple with two moderate balances can shelter more in the tax-free pension phase than a couple with one very large balance and one small one.
- Age Pension timing. Because entitlement depends partly on each person’s age, balancing super can affect when household savings become assessable.
- Fairness and security. Both partners retaining meaningful super in their own name provides security, particularly through relationship breakdown or the death of a partner.
Spouse Contributions and the Tax Offset
A spouse contribution is an after-tax contribution you make into your partner’s super account. If your partner is a low or non-earner, you may be able to claim a tax offset for doing so.
The offset is up to $540 and applies where you contribute for a spouse whose income is below a lower threshold, phasing out as their income rises to an upper threshold. Those income thresholds are set by the ATO and can change — check the current figures at ato.gov.au. Your spouse must also be under the age limit and their total super balance must be below the general transfer balance cap for you to claim the offset.
The contribution counts towards your spouse’s non-concessional contribution cap, not yours, so it is a way to build their balance without touching your own concessional room. It works well for couples where one partner is out of the workforce or working part-time.
Worked Example
Alex earns a good salary; their partner Jordan is on parental leave with very low income for the year. Alex contributes $3,000 into Jordan’s super. Because Jordan’s income is below the lower threshold, Alex can claim the maximum $540 tax offset, and Jordan’s super balance grows by $3,000. The offset directly reduces Alex’s tax payable — a genuine, if modest, saving on top of the balance boost.
Contribution Splitting
Contribution splitting is different: instead of contributing new money, you transfer up to 85% of your concessional (before-tax) contributions from a financial year across to your spouse’s super account.
The 85% reflects the fact that concessional contributions are taxed at 15% inside the fund, so the after-tax amount available to split is 85% of what you put in. You generally apply to your fund to split the previous year’s concessional contributions, and your spouse must be under preservation age (or under 65 and not retired).
This is a way to move balance to a partner using contributions you were making anyway — for example, your Super Guarantee and salary sacrifice amounts — rather than finding extra cash.
Worked Example
Sam salary sacrifices heavily and makes $30,000 of concessional contributions in a year. Their partner Riley has a much smaller balance. Sam applies to split 85% of those contributions — up to $25,500 — into Riley’s account. No new money is needed; the split simply redirects contributions Sam had already made, helping the couple even up their balances and make better use of both transfer balance caps down the track.
Which One Should You Use?
| Feature | Spouse contribution | Contribution splitting |
|---|---|---|
| Source of money | New after-tax money from you | Your existing concessional contributions |
| Main benefit | Up to $540 tax offset + boosts spouse’s balance | Rebalances a couple’s super without new cash |
| Counts against | Spouse’s non-concessional cap | Already counted in your concessional cap when made |
| Best when | Spouse is low- or non-earning | You have strong concessional contributions to share |
Many couples use both over time: contribution splitting to steadily rebalance the higher earner’s contributions, and spouse contributions in years when the lower earner’s income is low enough to trigger the offset.
A Couple’s Strategy Over Time
The two rules work best as part of a long-term approach rather than a one-off. A common pattern for couples with uneven incomes looks like this:
- During working years, the higher earner uses contribution splitting to steadily move a share of their concessional contributions to the lower earner, keeping the two balances from drifting too far apart.
- In years the lower earner’s income is very low — parental leave, study, part-time work — the higher earner makes a spouse contribution to capture the up-to-$540 tax offset.
- Approaching retirement, the couple checks that neither balance is so large it wastes a transfer balance cap, adjusting contributions or considering a downsizer contribution to top up the smaller account.
Done consistently, this can shelter more of the couple’s combined savings in the tax-free retirement phase and improve their overall after-tax retirement income.
Why Two Balanced Accounts Can Beat One Large One
Because each person has their own transfer balance cap ($2.1 million for 2026–27), a couple with two moderate balances can move more into tax-free retirement pensions than a couple with one very large balance and one small one. Amounts above an individual’s cap must stay in the accumulation phase, where earnings are taxed at up to 15%. Evening up balances during the working years is the simplest way to make full use of both caps later — and spouse contributions and splitting are the main tools for doing it. This is a genuine, if often overlooked, part of household retirement planning.
Considerations and Pitfalls
- Check the income thresholds. The spouse offset phases out as your partner’s income rises; confirm the current thresholds at ato.gov.au.
- Splitting has timing rules. You usually apply after the end of the financial year in which the contributions were made — do not leave it too late.
- Caps still apply. Spouse contributions use your partner’s non-concessional cap; splitting does not create extra concessional room.
- Define “spouse” correctly. The rules cover married and de facto partners, but not all situations — check eligibility.
For couples thinking bigger picture, these strategies work alongside the downsizer contribution, the government co-contribution, and your overall target for how much super you need to retire.
This article is general information only and not financial or tax advice; consider your own circumstances and speak to a licensed adviser or the ATO before acting.