Understanding super contribution splitting

Super contribution splitting is a strategy that can help a spouse's superannuation to grow.

Contribution splitting enables a client to split up to 85% of their concessional contributions (CCs) in a financial year with an eligible spouse.

One purpose of the regulation¹ is to provide an option to help reduce the impact to the superannuation of a spouse when taking time out of the workforce before retirement age.

In this article, we will explore the super splitting rules and address some common adviser questions on this strategy.

The benefits of super contribution splitting

Depending on the clients’ circumstances, some benefits of contribution splitting may include:

• ‘evening up’ super balances, which may increase the combined super that can be transferred into tax-free retirement pensions
• providing earlier access to super benefits
• increasing Centrelink entitlements
• protecting against future legislative changes targeting high balance holders, such as Division 296 tax
• fund insurance premiums for a low-income earning spouse
• managing contribution thresholds so clients can make additional non-concessional or catch-up contributions.

Before recommending a client undertake a contribution split with their spouse, you should ensure they satisfy all the eligibility requirements. You may also want to download the Super contribution splitting with your spouse fact sheet (PDF 596 KB).

Contribution splitting rules and age requirements

The contributing member can be any age, but the receiving spouse must be:

• under age 60; or
• between age 60 and 65 and doesn’t meet the retirement condition of release at the time of the request to split contributions.

What if the receiving spouse is 60 and no longer working but hasn’t declared themselves retired and their super is still preserved?

A valid splitting application can be made if the receiving spouse hasn’t ceased employment after reaching age 60, doesn’t consider themselves permanently retired and may potentially return to gainful employment and can truthfully declare this on the contribution splitting form application.

What if the receiving spouse has reached 60, ceased employment and transferred their super into a retirement pension, but has now started a new job?

While the receiving spouse met the retirement condition of release upon ceasing employment, it’s acceptable to say they’re not currently retired and thus receive the spouse split.

What if the receiving spouse has never worked?

An individual who has never worked can’t meet the retirement condition of release and should be eligible to receive the spouse split. They generally can’t access their super until age 65.

Not all contributions can be split

Generally, concessional contributions including employer super guarantee, salary sacrifice and personal contributions for which a deduction has been claimed can be split.

Contributions which can’t be split include (but are not limited to):

• non-concessional contributions
• downsizer contributions
• contributions under a personal injury or a Capital Gains Tax small business election
• transfers from overseas super
• contributions to the defined benefit component of a defined benefit interest.

It's important to note that not all super funds offer contribution splitting and a fee may be charged.

Frequently asked questions

Does the client always need to wait until the next financial year to split their contributions?

The only time the client can split super contributions in the same year the contributions are made is if their entire super balance is being withdrawn, rolled over or transferred to an income stream before the end of the financial year. This contribution splitting application may cover concessional contributions made in the prior financial year as well as those from the current financial year prior to the rollover or withdrawal.

Only one contribution split can be made for the applicable financial year.

It isn’t possible to bring forward the splitting application solely to meet the age requirement.

Example - Mark
Mark wants to split his concessional contributions made in 2025-26 to Danielle. Danielle turns 65 on 1 July 2026. Mark cannot split contributions in the current financial year whilst Danielle is age eligible, unless he was rolling over or withdrawing his entire benefit.

My client wants to claim a tax deduction on their personal contribution, split contributions to their spouse and then start a pension with the remaining balance. How does that work?

Where some or all of the personal deductible contribution is to be split, a Notice of Intent (NOI) must be lodged and acknowledged by the super fund prior to the contribution split. The ATO does note on their website that both forms can be lodged at the same time.

It is important the pension is not commenced before the NOI is lodged and acknowledged by the fund (as this will invalidate the NOI) nor before the relevant contributions are split (they cannot be split from the pension).

Can a client split excess contributions?

The maximum amount that can be split is the lesser of 85% of concessional contributions and the concessional contribution cap of the individual for that financial year. Contributions splitting does not reduce the amount counted towards the client’s concessional contributions cap and cannot be used to avoid an excess contribution.

Case study – Marcus
Marcus’ total concessional contributions in the 2025-26 financial year are $40,000. He’s not eligible for any unused concessional cap and has excess contributions of $10,000. The maximum he could split to an eligible spouse is $30,000 – being the lesser of ($40,000 x 85% = $34,000) and his concessional contribution cap for the year of $30,000.

What if the client is eligible to make concessional contributions using their unused ‘catch up’ cap?

If the client has a total super balance at last 30 June below $500,000 and unused concessional contribution cap accrued from the last five years, they may be able to make concessional contributions over the annual cap. This would allow them to split a higher amount to an eligible spouse.

Case study – Amelia
Amelia is eligible to make catch-up concessional contributions and her cap for the 2025-26 financial year is $80,000 ($30,000 plus $50,000 of unused accrued over the past five years). In the same financial year, her total concessional contributions are $50,000. The maximum she can split to an eligible spouse is $42,500 – being the lesser of ($50,000 x 85% = $42,500) and her concessional contribution cap of $80,000.

Super contribution splitting can be a powerful tool for couples to balance retirement savings, manage contribution caps, and potentially access funds earlier.

When providing advice, it’s important to ensure your clients satisfy the eligibility requirements and that implementation is completed correctly.

We’re here to help

Whether you need clarity on super or defined benefit strategies, retirement income or investments, our Adviser Technical Solutions team is here to provide practical and timely support so you can deliver better outcomes for your clients. You can contact the team via phone on 1800 417 727 between 9:00am and 5:00pm (Melbourne time), Monday to Friday, or by completing the contact form.