Spouse contribution splitting lets a member move up to 85% of their concessional contributions to their spouse's super each year. For couples with a five-plus-year age gap, splitting from the older partner to the younger shifts assets from about-to-be-assessed to invisible for years, since super in accumulation phase isn't assessed until age 67. At the $30,000 cap, up to $25,500 a year can shift.
For couples where one partner is approaching Age Pension age and the other is several years behind, there is an asymmetry in how Centrelink views their combined superannuation that most pre-retirement planning conversations do not lean on. The mechanism that exploits this asymmetry has been quietly available in superannuation legislation for years — it is just rarely framed in Centrelink terms.
The mechanic is spouse contribution splitting. Each financial year, a member can apply to have up to 85% of their concessional contributions rolled across to their spouse's super account (ATO, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/how-super-works/splitting-super-contributions-with-your-spouse). The split is generally applied in the financial year following the year the contribution was made — a fund-level process where the contributing member fills out a form, the fund moves the money, and the contribution goes toward the receiving spouse's super balance going forward. Only concessional contributions can be split; non-concessional contributions cannot.
The reason this matters at the Age Pension boundary is a feature of how Centrelink assesses super. Until a person reaches Age Pension age — currently 67 — their superannuation in accumulation phase is invisible to the assets test. It is not deemed under the income test either. The moment they reach 67, the full balance lands on both tests as a financial asset (Services Australia, https://www.servicesaustralia.gov.au/assets-test-for-age-pension?context=22526). Before 67, nothing.
Apply that to a couple with an age gap. If one partner is 65, two years out from Age Pension age, and the other is 58, nine years out, splitting concessional contributions from the older partner's super to the younger partner's super effectively moves assets from "about to be assessed" to "not assessed for years yet." The split amount sits in the younger partner's account, growing inside super at a 15% earnings tax rate, completely outside the older partner's Age Pension means tests until the younger partner also reaches 67.
The numbers are bounded but meaningful. The 85% ceiling reflects the after-tax amount of a concessional contribution — the 15% contributions tax leaves 85 cents in every dollar available to split. At the $30,000 concessional cap for 2025-26, the maximum splittable amount per year is $25,500. Repeated across several pre-retirement years, this adds up. A couple running the strategy for five years could shift more than $127,500 of assessed-on-arrival assets into a younger partner's account where they do not count toward the older partner's pension claim.
This is a strategy for a specific shape of couple. It works best where there is a five-plus-year age gap, the older partner is approaching 67, and the couple is projected to receive a part Age Pension — close enough to the assets test threshold that shifting assessed assets actually changes the entitlement. For couples with similar ages, the gap window does not really exist. For couples well above the upper assets test cut-off, there is no Age Pension to preserve. For couples well below the lower threshold, asset position does not yet matter.
The constraints are worth understanding carefully. Only concessional contributions are eligible — non-concessional contributions cannot be split. The receiving spouse must be eligible to receive the split: specifically, under preservation age (currently 60 for those born after 30 June 1964), or between preservation age and 65 and not retired. Personal deductible contributions require a valid notice of intent to claim the deduction, lodged with the fund before the splitting application — the order matters and getting it wrong can cost the deduction. Fund rules vary, and the timing of when the splitting application can be lodged differs between funds.
What the strategy is not is a permanent reduction in assessed assets. When the younger partner eventually reaches 67, their super becomes assessed under the same rules. The value of the strategy sits in the years before that point, when the older partner's pension claim is live and the younger partner's super is still off Centrelink's radar.
Sources
- Australian Taxation Office (ATO) — Splitting super contributions with your spouse
- Services Australia — Assets test for age pension
Key takeaways
- Each financial year, a member can apply to split up to 85% of their concessional contributions across to their spouse's super account — the 85% ceiling reflects the after-tax amount left once the 15% contributions tax is applied; only concessional contributions are eligible, not non-concessional.
- Superannuation in accumulation phase is invisible to the Age Pension assets test (and not deemed under the income test) until the member reaches Age Pension age, currently 67 — at which point the full balance lands on both tests at once.
- For a couple with a five-plus-year age gap, splitting concessional contributions from the older partner to the younger effectively moves assets from about to be assessed to not assessed for years, since the split amount sits in the younger partner's account until they too reach 67.
- At the $30,000 concessional contributions cap for 2025-26, the maximum splittable amount is $25,500 per year — run across five pre-retirement years, a couple could shift more than $127,500 of assessed-on-arrival assets into the younger partner's account.
- The strategy works best for couples with a five-plus-year age gap projected to receive a part Age Pension close to the assets test threshold — it offers no benefit to couples of similar ages, couples well above the upper threshold, or couples well below the lower threshold, and it isn't a permanent reduction since the younger partner's super is eventually assessed too.
Frequently asked questions
How does spouse contribution splitting help with the Age Pension?
Because superannuation in accumulation phase isn't assessed for the Age Pension until the member reaches Age Pension age (currently 67), splitting concessional contributions from an older partner approaching 67 to a younger partner still years away moves those assets from about to be counted to invisible for several more years — potentially preserving more of the older partner's Age Pension entitlement in the meantime.
How much super can I split with my spouse each year?
Up to 85% of your concessional contributions for the financial year, reflecting the after-tax amount left once the 15% contributions tax is deducted. At the $30,000 concessional contributions cap for 2025-26, the maximum splittable amount is $25,500 per year. Only concessional contributions can be split — non-concessional contributions are not eligible.
Who is eligible to receive a spouse contribution split?
The receiving spouse must be under preservation age (currently 60 for those born after 30 June 1964), or between preservation age and 65 and not retired. If the contribution being split is a personal deductible contribution, a valid notice of intent to claim the deduction must be lodged with the fund before the splitting application — getting the order wrong can cost the deduction.
Is spouse contribution splitting a permanent way to reduce assessed assets for the Age Pension?
No. It's a timing strategy, not a permanent exemption. When the younger partner eventually reaches Age Pension age themselves, their super — including the split amounts — becomes assessed under the same rules. The benefit is confined to the years before that point, while the older partner's pension claim is live and the younger partner's super is still outside Centrelink's assessment.