Spouse contributions in an SMSF | Explained

The following are two ways you can help build up your spouse’s superannuation. You can choose to:

contribute non-concessional superannuation on your spouse’s behalf, or
allot, rollover or transfer part of your own concessional contributions made to your fund to your spouse’s super via a spouse contribution splitting arrangement.

The mechanisms are very different, but both result in the spouse’s super balance increasing.

Why add to my spouse’s super?

As a couple, you may want one spouse to have a higher super balance, or, depending on the strategy you are aiming for, keep super balances equal.

You can keep your total super balance below the Div 296 threshold of $3 million by splitting your concessional contributions with your spouse if their total super balance is much lower.
Equalising super balances can maximise the amount you both can have in retirement phase pensions, as the transfer balance cap (maximum amount you can have in pensions) applies per person. The general transfer balance cap is $ 2.1 million as at 1 July 2026.
Maximising contributions to super, such as carrying forward unused concessional contributions where your total super balance is less than $500,000 at 30 June of the previous financial year, can help. Splitting your concessional contributions can be helpful if you are approaching the threshold.
You can only make a non-concessional contribution (NCC) if your total super balance at 30 June (previous year) is less than $2.1million, if making a NCC in the 2026/27 year, or $2million if making a NCC in the 2025/26 year. Regularly transferring your concessional contributions to your spouse, who has a lower balance, may allow you both to make NCCs. It may even make the difference in being eligible to use the bring forward rule.
Large age gaps between spouses may mean it is beneficial to top up the older spouse’s super, as they can access it much sooner – especially if the older spouse is near 65 or near 60 and intends to change jobs or cease working after they turn 60.
It may be beneficial for an older spouse to transfer as much super as possible to the younger spouse so the older spouse can meet the income and assets tests counted by Centrelink for age pensions.

Spouse Contribution – contributing super on behalf of your spouse

You can contribute non-concessional contributions on behalf of your spouse.

What is the eligibility for making a spouse contribution?

You can make a non-concessional (after-tax) contribution to your spouse’s super fund, provided the following criteria are met:

Your spouse must be under 75 years old when the contribution is made.
The contribution cannot exceed your spouse’s non-concessional cap, which is $130,000 from
1 July 2026, or if eligible, a maximum of $390,000 utilising the bring-forward rule.
Your spouse’s total super balance at 30 June 2026 cannot exceed $2.1million if making the contribution in the 2026/27 year or $2million at 30 June 2025 if making the contribution in the 2025/26 year.
You must be married or in a de facto relationship, ruling out separated or divorced couples.
Both you and your spouse are Australian residents.

How much is the tax offset?

The tax offset is 18% with a maximum amount of $540, where your spouse’s income is $37,000 or less, and you contribute $3,000 or more to your spouse’s super fund. A partial tax offset is available when your spouse’s income is more than $37,000 but less than $40,000.

Example based on the ATO website-eligibility for tax offset

Carmel and Adam are married and living together. Carmel is 46 years old, and her income is $38,000 per year. Carmel has not exceeded her non-concessional contributions cap for the 2025/26 income year, and her total super balance is under $2 million at 30 June 2025.

Adam wishes to make a super contribution of $3,000 to Carmel’s SMSF in the 2025/26 year.

Carmel’s income is under the threshold. Adam is eligible for a tax offset. As Carmel earns more than $37,000 per year, Adam will not receive the maximum tax offset of $540. Instead, his entitlement is 18% of the lesser of:

$3,000 reduced by every dollar over $37,000 that Carmel earns
the value of spouse contributions.

Carmel earns $1,000 over the $37,000 income threshold. Adam’s tax offset is $360. This is calculated as 18% of $2,000 ($3,000 reduced by the $1,000 that Carmel earned over the $37,000 income threshold).

Spouse Contribution Splitting

You can split up to 85% of your concessional contributions (before tax) received in the previous financial year with your spouse, or, if your spouse rolls over or cashes out their entire super balance in the same year the contribution is made, the split can be made in that year.

Hint -the 15% difference is the tax payable in relation to the contribution paid by the SMSF to the ATO.

What is the eligibility for a spouse contribution split?

The contribution made by or on behalf of the contributing spouse is subject to the usual eligibility for making contributions.
The contribution is split to your spouse.
Your spouse must be under 65 years old.
If your spouse is between 60 and 65 and retired, you cannot split your concessional contributions to them.
The age of the receiving spouse is at the time of the spouse contribution splitting notice and not the age when the contribution was actually made by the contributing spouse.
Only concessional contributions can be split.
Any personal concessional contribution can only be split after the intent to claim a tax deduction has been made by the member and it has been acknowledged by the trustee.

What is the maximum amount that can be split?

The maximum amount which can be split is the lesser of:

85% of the concessional contributions for the year, and
the concessional contributions cap

Hint – contributions made above the concessional cap due to carrying forward unused concessional contributions from prior years are part of the concessional contributions cap for the year.

Example – splitting contributions (including excess contributions)

In the 2024/25 year, Charlie’s employer made super contributions of $40,000 to his SMSF on his behalf.

Charlie heard about contribution splitting, and so he completed the Superannuation contributions splitting application to transfer 85% of his concessional contributions made in 2024/25 to his spouse, Annabelle, on 1 July 2025.

Charlie’s accountant advised him that he exceeded his concessional contribution cap of $30,000 and he would receive an excess concessional contributions determination from the ATO in due course.

Charlie’s accountant advised him that his application could not be accepted because he was not permitted to split $34,000 (85% of $40,000) with Annabelle, as the amount exceeded the $30,000 concessional contributions cap.

Example: Carry forward unused concessional contributions cap

In 2023/24, Linda’s employer contributed $20,000 to her SMSF. Linda’s total super balance at 30 June 2023 was less than $500,000. She can carry forward $7,500 of unused concessional contributions as the cap was $27,500 in the 2023/24 year.

In 2024/25, Linda had super contributions made for her for the financial year of $45,000, $21,000 were salary sacrificed, and $24,000 were employer contributions.

Linda completes the Superannuation contributions splitting application to split $37,500 to her spouse, Jim, on 1 July 2025. Linda’s total super balance at 30 June 2024 was less than $500,000, so she was eligible to boost her concessional contributions cap to $37,500 (the general cap of $30,000 plus her unused concessional contributions of $7,500 from the prior year) for the 2024/25 year.

Linda’s application is valid because $37,500 is the lesser of the two:

85% of the $45,000 ($38,250) concessional contributions made by her employer
Linda’s concessional contributions cap ($37,500).

Her super fund transfers $37,500 to Jim’s account in their shared SMSF in July 2025. Linda receives an excess concessional contributions determination for 2024/25 because her total employer contributions ($45,000) exceeded her concessional contributions cap ($37,500).

What happens if my spouse “retired” after turning 60?

After turning 60 but before turning 65, an SMSF member can be “retired” permanently if they no longer intend to be employed in the future, or “retired” if they cease working in a job they previously held.

If the spouse is over 60 and is “retired”, they cannot receive a contribution split. This is assessed when the splitting application is made.

Example – permanent retirement, but spouse goes back to work

Nadia was 61 and did not intend to work again after ceasing employment in August 2025, but a job opportunity was too good to refuse, so she decided to resume work. James, her husband, wants to split 85% of his $20,000 concessional contributions from the previous year to Nadia in February 2026. As Nadia resumed working in January 2026 and is no longer retired when the application was made, the application can be accepted, and $17,000 can be split to Nadia.

Warning – the statement to the trustee that Nadia had permanently retired and did not intend to work in the future must be genuine. If she merely made a statement to her SMSF trustee to meet a condition of release to access her super, it may be difficult to argue that she had actually retired, especially as she resumed work within 6 months.

Example – after turning 60 and ceasing employment

Jack had two jobs in 2024/25. He worked as a DJ for 2 days per week and as a mechanic for 3 days per week. After turning 60, he left his role as a mechanic in September 2025. Freida, his wife, wants to split 85% of her $30,000 concessional contributions made in 2024/25 to Jack in December 2025.

Jack met the definition of retirement in September 2025, and his super balance was available to him then. However, he must satisfy another condition of release to be “retired” in the future. He can therefore receive the contribution split from Freida, as he was not retired at the time the application was made in December 2025.

Example – after turning 60 and stopping working

Gary intended to retire but had not formally advised his SMSF trustee of his decision. Meanwhile, Gary and his wife, Susan, decided to make a final contribution split from Susan to Gary to boost his superannuation benefits. Gary was over 60 when he stopped working and had not turned 65. He was not “retired” because he had not formally advised the trustee. The contribution split could be made.

How does my SMSF account for the split of spouse contributions?

After receiving a validly signed spouse-splitting contributions form, the split is treated as an internal rollover from the contributing spouse to the receiving spouse. The rolled-over amount is treated as preserved benefits with a taxable component and can be accessed only when the receiving spouse meets a condition of release.

What are the potential disadvantages?

Once the money has been deposited or split into the spouse’s super it becomes part of their member benefits and therefore cannot simply be transferred back to the depositing spouse. This means that in the event of a relationship breakdown for example, the only way to recoup the spouse contribution is by way of a Binding Financial Agreement through the Family Court. Care should be taken with binding death benefit nominations as these apply to the deceased member’s balance, regardless of where the source of the funds originated from. This can cause issues in blended families or in instances of family friction.