A simple way to balance super and plan for a stronger financial future
At q4 financial, we believe that smart, forward-thinking planning isn’t just about growing wealth — it’s about protecting it and making it work for you and your family over the long term. One strategy that many couples overlook is super splitting.
What is super splitting?
Super splitting allows you to transfer up to 85% of your concessional (pre-tax) super contributions to your spouse’s super account. This is generally done after the end of each financial year.
While simple in practice, super splitting can provide valuable benefits, both in retirement and throughout your working life.
Why consider super splitting?
Balance super between partners
Super splitting can help even out super balances between spouses — which is particularly useful if one partner has taken time out of the workforce, works part-time, or earns a lower income. Balancing your super means both partners can enjoy greater flexibility and tax advantages in retirement.
Access super sooner
If your spouse is older and closer to retirement age, splitting contributions can help bring forward access to super for your family. This can assist in funding an earlier retirement or allow for a gradual transition from work.
Manage future tax and estate planning
Super splitting can help reduce potential tax on super death benefits, manage transfer balance cap limits, and maximise Centrelink entitlements. It’s a practical tool for managing tax outcomes and planning your estate effectively.
Make the most of contribution caps
If one partner is nearing their concessional contribution cap, splitting contributions to the other partner helps you make full use of both partners’ contribution limits over time.
Who can benefit from super splitting?
Super splitting may be worth considering if:
- There is a significant difference in super balances between you and your spouse.
- You’d like to access super earlier through an older partner’s entitlement.
- You want to reduce future tax on super or better manage estate planning.
- You’re building a family wealth plan that optimises contributions for both partners.
Important considerations
- Super splitting only applies to concessional contributions (including employer contributions, salary sacrifice and personal deductible contributions).
- Contributions can generally be split only after the end of the financial year.
- The receiving spouse must be under preservation age or, if older, must not have retired.
How we can help
At q4 financial, we only recommend strategies that we believe will put you in a stronger position, now and in the future.
If you’d like to explore whether super splitting could work well within your broader wealth strategy, our team is ready to help you make informed, confident decisions for you and your family’s financial freedom.
Want to find out more smart strategies to grow your superannuation? We’ve created our ‘Super Series’
— a four-part blog collection designed to help you understand and use key strategies to grow your super more effectively.
Part 1: Carry-Forward Super Contributions
A smart way to boost your super and manage your tax effectively
Part 2 – Supercharge Your Super with the Bring-Forward Rule
A strategic way to grow your wealth in a tax-effective environment
Part 4: The Spouse Offset: A smart tax strategy for couples
Build wealth together and reduce tax along the way
The information provided in this blog is for general informational purposes only and does not constitute professional advice. While we strive to ensure the accuracy and completeness of the content, we make no guarantees regarding its reliability or applicability to your specific circumstances.
Key Points:
- Not Professional Advice: This blog is not intended to replace professional tax advice. Consult a qualified tax advisor for personalised guidance.
- No Liability: We are not responsible for any errors or omissions, nor for any actions taken based on the information provided.
- Subject to Change: Tax laws and regulations are subject to change. Ensure you are up-to-date with the latest information.
- Personal Circumstances: Individual tax situations vary. The strategies discussed may not be suitable for everyone.
- External Links: Any external links provided are for convenience and do not imply endorsement. We are not responsible for the content of external sites.
