Client Alert

Tackling the gender super gap: Bill introduced to allow superannuation splitting

By:
Simon Gow,
Adriarnne Ede
19 Sep 20253 min read
QUICK SUMMARY
  • The Superannuation Legislation Amendment Bill 2025 would allow spouses to split superannuation annually during the accumulation phase, beyond divorce or separation.
  • Eligibility includes being under 65, not in pension phase, and each having one super account. Transfers must stay within the $2m cap and retain original tax treatment.
  • The measure aims to support fairer retirement outcomes, especially for those with caregiving responsibilities.
The Superannuation Legislation Amendment (Tackling the Gender Super Gap) Bill 2025 presents the opportunity to evenly split superannuation balances amongst spouses.
Contents

What’s proposed?

The Bill amends key legislation to allow annual voluntary superannuation balance splitting between spouses during the accumulation phase. This is no longer limited to divorce or separation – it’s about planning retirement together.

Key features

  • Annual super splitting: Spouses can voluntarily transfer part of their super to their partner to even out balances.
  • Eligibility:
    • Only available to those not in pension phase.
    • Defined benefit schemes are excluded.
    • Both spouses must have only one super account each.
    • The receiving spouse must be under the general transfer balance cap (currently $2m).
    • The receiving spouse must be under 65 years of age.
    • Can only be done once per year.

How much can be split?

The amount that can be transferred is capped by the Spousal Redistribution Limit which ensures:

  • The receiving spouse’s balance does not exceed the general transfer balance cap.
  • The transferring spouse’s balance does not fall below the receiving spouse’s balance after the transfer.
  • Transfers retain their original tax characteristics (preserved/unrestricted non preserved, taxed/untaxed), and are treated as rollovers, not new contributions – so no additional tax applies.

Examples

  • If Partner A has $5.5m and Partner B has $500,000, A can transfer up to $1.5m to B (bringing B to the $2m cap).
  • If A has $2m and B has $500,000, A can transfer $750,000, equalising both at $1.25m.

Why it matters

Women retire with 20-25 per cent less super than men, largely due to time out of the workforce for caregiving. 

This Bill aims to:

  • Recognise unpaid labour.
  • Promote financial equality.
  • Support joint retirement planning.

This new measure may also provide some strategy relief when it comes to planning for the potential Div 296 ($3m super) tax.

Read more about the Bill and Explanatory Memorandum.

We’re here to help

If you’d like to discuss how the Superannuation Legislation Amendment (Tackling the Gender Super Gap) Bill 2025 may affect you, please reach out to one of our expert advisors today.

TAGS  
Authors
  • Simon Gow
    Simon Gow For over 17 years Simon has worked within the private advisory team of Grant Thornton Perth as an SMSF specialist advising business and private clients. View Profile
  • Adriarnne Ede
    Adriarnne Ede As a trusted adviser to her clients, Adriarnne also works closely with a number of external Financial Advisory Firms to assist our clients with the product advise they require to make their retirement successful. View Profile

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