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

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.

_{The above information is provided as an information service only and, therefore, does not constitute financial product advice and should not be relied upon as financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs. You must determine whether the information is appropriate in terms of your particular circumstances. For financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision in relation to any of the matters discussed.}