By Paul Feeney, Founder and Chief Executive Officer, Otivo
Career breaks don't hit couples evenly. One partner steps back for children or caring, their super contributions slow or stop, and a gap opens between two balances that were once tracking together — a gap that quietly compounds for decades afterwards. The tax system has a nudge aimed squarely at this. Contribute to a lower-earning spouse's super, and the contributing partner can claim a tax offset worth up to $540 a year. It's one of the more direct win-wins in super, and here's how it works, who qualifies, and the fine print that decides the size of the offset.
A spouse super contribution is an after-tax contribution made directly into a partner's super account. The contributing spouse can claim an 18 percent tax offset on up to $3,000 of contributions, a maximum of $540 a year, where the receiving spouse's income is $37,000 or less. The offset tapers to zero at an income of $40,000, under rules administered by the ATO.
How does the spouse contribution tax offset work?
The mechanics are pleasingly simple. One partner makes an after-tax contribution — a non-concessional contribution — directly into their spouse's super account, using the fund's usual payment channels. At tax time, the contributing partner claims the offset in their return.
The offset is 18 percent of contributions up to $3,000. Contribute the full $3,000 to a spouse earning $37,000 or less, and the offset is $540 — taken straight off the contributor's tax bill, since an offset reduces tax payable rather than taxable income. Contribute less and the offset scales down with it, so $2,000 in attracts $360 back.
The income taper is where people get caught. The full offset applies while the receiving spouse's income sits at or below $37,000. Between $37,000 and $40,000, the eligible contribution amount shrinks dollar for dollar, and at $40,000 the offset disappears entirely. Income for this test is broader than salary — it includes assessable income, reportable fringe benefits, and reportable employer super contributions.
Who is eligible for the offset?
Several conditions apply, all of them checkable in an evening.
- The couple must be married, de facto, or in a registered relationship, and not living separately on a permanent basis.
- Both partners are Australian residents when the contribution is made.
- The receiving spouse is under 75 at the time of the contribution.
- The receiving spouse's total super balance was below the general transfer balance cap — $2.1 million for 2026–27 — on 30 June of the previous financial year.
- The receiving spouse hasn't exceeded their non-concessional contributions cap, which is $130,000 for 2026–27. Spouse contributions count towards the receiving partner's cap, not the contributor's.
- The contribution must be a genuine after-tax contribution the contributor doesn't claim a deduction for.
One distinction saves confusion — contribution splitting, where a portion of one partner's own concessional contributions is transferred to the other's account after year end, is a different mechanism entirely. Splitting is treated as a rollover and attracts no offset. The offset belongs only to direct spouse contributions.
Why does closing a super gap between partners matter?
Because retirement arrives for the household, not the individual — and a lopsided pair of balances carries real costs. Money in the lower balance has the same decades to compound as money in the higher one, so contributions directed there aren't charity, they're the same retirement plan through a different door. Spreading super between partners can also matter later, when transfer balance caps limit how much each individual can move into a tax-free retirement pension.
The design of the offset acknowledges something the raw numbers miss — the years that create super gaps are usually the years a household is doing its most valuable unpaid work. A $540 offset doesn't rebalance a decade of part-time SG contributions. It does make the rebalancing cheaper, every single year a couple qualifies.
How does a couple actually do it?
Three steps. Check the receiving spouse's expected income for the year against the $37,000 and $40,000 thresholds. Make the contribution directly into their fund before 30 June, clearly as a spouse contribution — most funds have a specific payment reference or form for this. Then claim the offset at the contributing partner's tax return, where the ATO's spouse contribution question does the arithmetic.
Whether $3,000 towards a partner's super is the best use of that $3,000 is a household-level question — it competes with debt, buffers, and the contributor's own super. Otivo's platform gives regulated personal advice under AFSL and Australian Credit Licence No. 485665 across exactly those trade-offs, helping couples see their position as one plan rather than two.
Frequently asked questions
Can both partners claim the offset in the same year?
Yes, in principle — if each contributes to the other's super and each receiving partner's income sits under the thresholds, each contributor can claim an offset. In practice the income tests mean this suits couples where both partners had low-income years, which is less common but far from unheard of.
Do spouse contributions get taxed going into the fund?
No contributions tax applies, because they're non-concessional — made from money that's already been taxed. They count towards the receiving spouse's non-concessional cap of $130,000 for 2026–27, and they're preserved like any other super once inside.
Is a spouse contribution better than contribution splitting?
They solve different problems. Spouse contributions move new after-tax money and attract the offset, subject to the income tests. Contribution splitting redirects up to 85 percent of one partner's concessional contributions after the year ends, with no offset and no income test. Some couples use both. Which combination suits a household depends on incomes, balances, and cash flow.
Sources
- ATO — Superannuation-related tax offsets. ato.gov.au
- ASIC MoneySmart — Super contributions. moneysmart.gov.au
- ATO — Non-concessional contributions cap. ato.gov.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.