Indexation of the Transfer Balance and Total Super Balance Caps
Joy Kulavong
2 years ago • 1 min read
The transfer balance cap will increase to $1.9 million, from 1 July 2023.
What is the transfer balance cap?
From 1 July 2017, the transfer balance cap was introduced as a lifetime limit on the total amount of super you can transfer into retirement phase (earnings are exempt from tax). This was initially $1.6 million.
What does the indexation mean?
For those who have a transfer balance account before 1 July in a financial year before indexation has commenced, the indexing of their personal transfer balance cap will be based on the unused cap percentage.
For those who used the total cap when the transfer balance account was first introduced at $1.6 million, this would mean that no portion of the indexed amount becomes available, as there was no unused amount.
However, if other transfer balance account events had occurred which debit the amount used, there may be space freed up.
It's important to note that there is no single transfer balance account that will apply to all.
The way to check your personal transfer balance cap is via ATO Online Services, through myGov.
