Contribution splitting

Contribution splitting allows couples to save tax by maximising the amount they can withdraw from their super tax-free if they retire before age 60.

How does contribution splitting help me save tax?

If you're retired, over your preservation age and under age 60 you can withdraw up to $200,000 tax-free from the taxable component of your super for 2017-18. By splitting contributions with your spouse, you can build up their super and both withdraw the maximum tax free amount. Withdrawals above $200,000 are taxed at your marginal tax rate or 17%, whichever is lower, which includes the Medicare Levy.

Are there other benefits of contribution splitting?

Contribution splitting can also be used to access tax-free super earlier or increase eligibility for Centrelink payments.

See our contribution splitting fact sheet

How much can I split?

You can split 85% of before tax contributions you made to your super fund in the previous financial year (the other 15% is deducted in tax), provided the amount is under your before tax contribution cap.

How much can I add to my super account?

Who can I split contributions with?

You can split your contributions with your spouse or de facto partner, including same-sex partner, provided:

  • they're under age 65
  • they're not retired
  • their super fund accepts split contributions.

Common questions about contribution splitting

What are before tax contributions?

Before tax contributions include the compulsory 9.5% payment your employer makes plus any salary sacrifice contributions you make.

See our before tax contribution fact sheet

What's the before tax contribution cap?

The before tax contribution cap is $25,000 pa for everyone. This cap amount may change each financial year in line with the Consumer Price Index.

You can't increase your contribution cap by splitting

Contribution splitting doesn't reduce the amount of contributions counted towards your contribution cap.