Have you heard about the private member’s bill introduced by Senator Jane Hume? It could reshape the superannuation landscape—and it’s already sparking serious conversation among industry experts.
The Superannuation Legislation Amendment (Tackling the Gender Super Gap) Bill 2025 proposes to allow couples to annually split their super balances, helping even out disparities—particularly the gender gap that sees women retire with significantly less.
But there’s more to this than just equity.
Michael Hallinan, special counsel at Townsends Lawyers, believes this reform could blunt the impact of Division 296, the proposed tax for those who have super balances over $3m. By redistributing balances between spouses, couples could potentially sidestep the tax altogether.
Hallinan calls it ‘The most superannuation-friendly reform from the Coalition in the last 20 years’.
Here’s what makes this proposal stand out:
- Female-Focused Reform: It directly targets the gender imbalance in retirement savings.
- Strategic Tax Impact: Could significantly reduce projected revenue from Division 296.
- Political Pressure Point: Forces a tough choice—oppose it and risk appearing anti-equity, support it and lose tax revenue.
Key Features of the Bill:
- Annual super splitting between spouses.
- Top-ups allowed up to the general transfer balance cap.
- Rollovers retain original contribution characteristics.
- Only available to those in accumulation phase with one super account.
- Receiving spouse must be under 65 (though Hallinan suggests raising this to 75).
This proposal isn’t just a technical tweak—it’s a strategic shift that could benefit thousands of Australians, especially women, while challenging the fiscal assumptions behind Division 296.
What do you think?
Is this a smart move toward fairness, or a loophole in disguise? Let’s discuss.