Some days it can feel hard enough managing your own money without needing to be totally across ‘couples’ rules and how they can affect both partners’ income.
Today we’ve compiled a list of the five most commonly asked ‘couples’ questions, with answers to help you stay on top of the rules that affect your household the most. These answers cover contributions, tax, downsizing and younger spouse options, so read on to ensure you have the information you need for your own money management.
1. Gary and Pam are thinking of downsizing
Q. I would like to understand the rules about downsizing and contributing to super. Can you confirm couples are able to contribute up to $600,000 to super in this way? Does the whole amount go into one super fund, or can it be split? If we later buy another property, can we withdraw some of the money we contributed to super to help with the purchase?
A. If you are 55 or older, you may be able to contribute up to $300,000 per individual from the proceeds of the sale (or part sale) of your home into your super fund. So, while an eligible couple can contribute a maximum of $600,000 between them, it would need to be evenly split across both super accounts to fully utilise your combined downsizer super contribution limit. A downsizer contribution is a non-concessional contribution, but it doesn’t count towards the contribution cap. It will not affect your total superannuation balance until it is re-calculated at the end of the financial year.
To subsequently withdraw contributed funds from super to purchase another property down the track, you would need to meet a condition of release such as retirement after turning 60 or reaching age 65.
2. Bernard asks about combining accounts
Q. I am 73 and retired, my wife is 60 and not retired. If we combine our super accounts into one, what are the rules about either of us having access to withdraw money from the one account?
A. While it is not possible to combine your super with your spouse to form a joint super account, it is possible to ‘pool’ your super assets by using a self-managed super fund – though you would still hold separate member balances for accounting purposes. There are also strategies you might consider that allow you to make super contributions to a spouse’s account.
3. Neil has a younger partner
Q. Will moving funds from my super accumulation account or income stream account to a younger spouse’s super account prior to me applying for the Age Pension cause any difficulties with Centrelink for the purpose of Age Pension entitlements? Does this come under the gifting rules?
A. This is a strategy which can often be beneficial, as anyone’s super is an exempt asset if it is still in accumulation phase and they are under Age Pension age. Any money contributed to this super balance is also therefore exempt until they reach Age Pension age. Therefore, unless an income stream is commenced, it doesn’t affect your Age Pension benefits because it is exempt. Be mindful there are super contribution caps when contributing funds to a spouse’s super account, and we can assist you to understand this if needed. Moving funds to a spouse is not classed as a gift, and gifting rules do not apply.
4. Alice is concerned about tax
Q. If my husband transfers some of his super to my super account, am I required to pay tax when it arrives in my account? My husband is 65 and I am 58 – how much in total is he allowed to contribute to my super account?
A. There are several ways you can contribute to a spouse’s super account. Your husband may be able to split concessional contributions he has already made to his own super account, by rolling them over to your super fund – this is known as a contributions-splitting super benefit. He may also be able to make a spouse contribution directly to your super account, treated as a non-concessional contribution. Depending on eligibility criteria, a spouse contribution may entitle him to a tax offset.
As your husband is 65 and meets a condition of release, it could also be an option to make a withdrawal from his super account with the proceeds then contributed to your super fund. You would need to be mindful of the relevant annual contribution limits and your eligibility to make contributions depending on your total superannuation balance and contribution history. As of 1 July 2025, the annual non-concessional contribution limit is $120,000 (or $360,000 under the ‘bring forward’ rule), while the annual concessional contribution limit is $30,000.
5. Jenny asks about the mortgage
Q. My husband is 18 months from retirement and has $670,000 in super. I have $230,000 in super and we have a $400,000 mortgage. Do we pay off the mortgage or transfer some of his super to me to make him eligible for the Age Pension?
A. This is an excellent question, Jenny, and a common scenario our advisers help with in our strategy consultations. The real answer is, it depends. There are so many pros and cons to weigh up and various strategies to explore before reaching a decision on how to proceed. We really would need a clearer understanding of your goals and plans. For this reason, we would recommend booking a “Should you pay off your mortgage?” strategy consultation where one of our advisers will spend 55 minutes with you talking through the rules and alternatives as well as modelling your options within our retirement forecasting tool to provide you with a clearer picture of your options
There can be a lot to think about when combining the needs and savings of two individuals. If you would like further tailored support, Retirement Essentials offers an “Understanding More About Super” Strategy Consultation where we can discuss and compare your options. We also help you to understand all the super contribution rules to give you the confidence to make your own best decisions.
Do you find other people’s questions help you better understand your own concerns?
Or are there aspects of super and couples that we haven’t covered in this article?
