In accordance with one embodiment, a contactless power transfer system is provided that comprises a stationary member including a power input configured to receive power at first voltage from a power supply. The system further includes a rotating member rotatably coupled to the stationary member and a rotary transformer. The rotary transformer has primary and secondary sides, with the primary side being disposed on the stationary member. The primary side has a primary winding that receives power at the first voltage from the power input. The secondary side is disposed on the rotating member and produces power at a second voltage. The secondary side has a rotating core and separate secondary sub-windings, each of which has forward and return paths that are circumferentially disposed about the rotating core. The forward and return paths of each of the sub-windings rotate proximate to, and are disposed a substantially equal distance from, the primary winding disposed on the stationary member.