In Australia, women still retire with nearly 25% less super than men. It’s a stark reminder of the long-term financial impact of lower earnings, career breaks, and unequal financial participation. For women or any lower-earning partner in a relationship, strategic tax and financial planning is essential to build security and independence.
“Financial planning isn’t just about income,” says Adam, Director of Business Advisory at Nexia Perth. “It’s about structure, timing, and informed decisions – especially for those with lower taxable income. There’s real opportunity in the details.”
Take an active role in tax and finances
Start by being involved. Make sure you:
- Attend tax meetings and reviews with your accountant.
- Confirm your bank account details are correct on ATO records.
- Check your Medicare and private health insurance information is up to date.
- Actively provide your deductions each year. Don’t assume your partner will.
“Financial literacy isn’t about doing everything yourself,” Adam says. “It’s about visibility, engagement, and having a seat at the table.”
Superannuation strategies to build long-term wealth
Salary sacrifice
Lower earning partners can make additional concessional (pre-tax) contributions to super to reduce taxable income and grow retirement savings.
Government co-contributions
If you earn under $56,112 (2024–25), the government may match your personal after-tax contributions up to a limit – essentially free super money.
Catch-up contributions
If your concessional contributions were below the cap in the last five years, you can make larger contributions now to catch up.
Spouse contributions and splitting
Higher-earning spouses can contribute to or split super contributions with their partner to help equalise balances and gain tax benefits.
“Super is the most powerful financial tool most Australians overlook,” says Adam. “It’s like a greenhouse for your money – contributions planted early and regularly can grow quietly in the background, protected from tax, until you need them.” “For moms who take career breaks or reduce hours, these strategies are essential.”
Don’t ignore ownership structures
Owning assets in the lower-earning partner’s name can offer tax efficiencies and even asset protection. This is often most effective for new purchases like:
- ETFs or investment accounts.
- Investment Property (assuming it won’t be negatively-geared).
Re-structuring existing assets can be expensive, so speak to a tax adviser before making any changes.
Adam notes: “Think of ownership like a nameplate on an investment vault – it decides who benefits, who pays tax, and who controls the outcome. It impacts tax, estate planning, and your long-term autonomy.”
Trusts and investment structures
While income splitting is generally not allowed, using a properly structured family trust may allow for more tax-efficient income distribution.
Trusts can:
- Hold investments like shares or property.
- Help distributions within family units.
- Provide succession planning and control.
Combine finances with boundaries
Having both joint and separate bank accounts can offer flexibility and fairness.
- Use individual accounts for income and personal expenses.
- Transfer agreed amounts to a joint account for shared bills, mortgage, or goals.
“It’s not about secrecy, it’s about autonomy,” Adam explains. “Both partners should feel equally informed and empowered – regardless of income level.”
Plan for the unexpected
In Australia, divorce often results in a 50/50 split. But that doesn’t mean both partners walk away with equal financial knowledge or control.
Regularly reviewing financial plans, super balances, and asset ownership ensures you’re protected, whatever life throws at you.
“Good advice isn’t just for high earners,” Adam says. “In fact, it’s often more critical when every dollar counts.”
Ready to take control of your financial future?
Want personal advice tailored to your financial role or relationship?
Contact Nexia Perth to speak with Adam and the Business Advisory team. We’ll help you navigate the nuances with clarity and confidence.
