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Retirement Planning? Why Split Your Super Contributions

Updated: Aug 4, 2021

Everyone needs to prepare for retirement, but they have to do it differently. People have unique living situations, and retirement planning should accommodate your lifestyle. For example, if you have a partner, your household will need to shoulder twice the amount of medical expenses and daily needs. So, it makes sense to think about modifying your saving plans now to make it easier for yourself later.

One way to fulfil your financial needs is through splitting your superannuation contributions with your spouse. Superannuation contribution splitting enables you to get the most out of your retirement as a couple. It lets you transfer your super contributions to your spouse and top it up if they have a lower balance. Doing this lets you maximise your tax benefits.

How Super Contribution Splitting Works

Spouses or long-term partners to split their super contributions with a spouse under the preservation age. If one spouse is over the preservation age, it is still possible to split super contributions—however, he or she must be under 65 and still have work.

In super contribution splitting, there is a maximum amount of taxed contributions that spouses can split. In this scheme, you can split the lesser of 85 per cent of the concessional contributions for a financial year. A wealth management and protection specialist can help you learn more about leveraging super contribution splitting—here is an overview of some of its benefits.

Why Opt for Super Contribution Splitting

Legislation currently prevents couples from accessing each other’s super account, except if they have a self-managed super fund. With super contribution splitting, spouses and long-term partners can access each other’s super benefits. It allows you to increase your partner’s superannuation balance, which is helpful if he or she has non-working periods or a lower income. Splitting is especially beneficial for the spouse who takes time off for childcare.

Splitting also enables you to access super benefits earlier than you usually could. This perk lets you provide for a spouse older than you or closer to retirement. When you reach pension age—at present, 66—your balance becomes tax assessable. If your assets are below pension asset test limits, you could be eligible for accessing aged pension payments. Splitting contributions with their younger spouse could bring significant benefits to the older one. It could let the older partner qualify for a government pension.

Super contributions also make your retirement more tax-effective. When you split contributions, you can keep your individual balances below $500,000. So, each partner can leverage carry forward rules on before-tax contributions for up to five years.

Finally, with contribution splitting, there is a $1.6 million pension cap. Splitting contributions with your spouse could be part of your long-term strategy for keeping your super balances within range of each other. When you split your contributions, you can keep your balances below $1.6 million. Splitting lets you enjoy more of your hard-earned money. A pension cap and balanced contributions mean you can maximise the combined total savings you can transfer to a tax-free account or environment upon your retirement.


Splitting your super contributions means more stability to your household. It makes your retirement funds more tax-effective, enables you to access your spouse’s super account, and helps you gain more control over your finances.

Swell Financial Planning is your financial planner in Queensland. We help you create the best combination of investments to help you enjoy your retirement the way you want. Get in touch with us today for enquiries!


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