💑 The Art of Sharing (to Save Tax)
David (62) has $1.9 Million in Super. His wife, Lisa (55), has $100,000.
David is approaching the Transfer Balance Cap (TBC), which sits at approx. $2.0 Million in 2026. If his Super grows any further, he won't be able to transfer it all into the tax-free pension phase. He will be forced to pay 15% tax on the earnings of the excess amount.
Meanwhile, Lisa has plenty of "Cap Space" unused.
The solution? David shouldn't just leave money in his account. He should use "Contribution Splitting" to move his recent contributions into Lisa's name. This simple form saves thousands in future taxes and can even unlock the Age Pension earlier.
Super Splitting allows you to transfer up to 85% of your "Concessional Contributions" (Employer SG + Salary Sacrifice) from the previous financial year to your spouse's Super account.
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| One Spouse Rich, One Poor? |
1. The Age Pension Hack
This is the most powerful secret for couples with a significant age gap.
👵 Sheltering Assets from Centrelink
Centrelink assesses your combined assets to decide if you get the Age Pension.
The Rule: Superannuation held by a person under Age Pension age (67) is EXEMPT from the asset test, provided it remains in the "Accumulation Phase".
The Strategy:
If the husband is 67 (pension age) and the wife is 60, the husband can move his super money to the wife's account via splitting or re-contribution.
Result: The husband's assessable assets drop significantly. He might now qualify for a part-pension and the valuable Pensioner Concession Card. The money is legally "hidden" in the wife's account until she turns 67.
2. The $2.0M Cap
The Transfer Balance Cap (TBC) limits how much money you can have in the tax-free "Retirement Phase." As of 2026, this cap is generally $2.0 Million per person (depending on your personal TBC history).
If David has $2.8M and Lisa has $0, David pays 15% tax on the $800k excess earnings.
If David moves money to Lisa over the years so they both have $1.4M, BOTH can move their entire balance into the tax-free pension phase.
It effectively doubles your tax-free capacity from $2.0M to $4.0M as a couple.
How to Execute
You cannot move existing balances from 10 years ago. You can only split contributions made in the previous financial year.
- Timing: You usually do this straight after the financial year ends (e.g., in July/August 2026 for the 2025/26 year).
- The Form: Download the "Superannuation contributions splitting application" form from the ATO or your Super fund's website.
- Eligibility: The receiving spouse must be under 65, or between 65 and 69 but not yet retired.
🛡️ Chief Editor’s Verdict
It's not about who earned it. It's about who keeps it.
- Do It Every Year: Make this an annual ritual in July. If you forget a year, you lose the opportunity to split that year's contributions forever.
- Access Earlier: If you are 50 and your spouse is 58, split to them. They can access the money at 60 (tax-free), while you would have to wait another 8 years.
Teamwork makes the dream work (and lowers the tax bill).
The information provided in this article is for general informational purposes only and does not constitute professional financial or tax advice. Superannuation laws, including the Transfer Balance Cap (TBC) and Centrelink Asset Test rules, are complex and subject to change. "Super Splitting" has strict eligibility criteria and deadlines. You should consider your own personal circumstances and consult with a qualified financial adviser before making any decisions. This content is based on Australian laws and market data as of January 2026.
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