In this guide
The Transfer Balance Cap (TBC) increased with indexation from $1.7 million to $1.9 million on 1 July 2023. Indexation will continue to increase the cap in $100,000 increments in future. If indexation increases the cap, the new amount takes effect on 1 July of the new financial year.
The cap started at $1.6 million on 1 July 2017 before rising to $1.7 million on 1 July 2021.
Indexation creates opportunities for some current retirees to increase the amount in their tax-free account-based superannuation pension. For those who are on the cusp of retirement, it may be worth delaying a super pension until after indexation takes effect.
Remind me, what is the TBC?
In a nutshell, your TBC is the maximum amount you can transfer to a tax-free pension account.
For more on the TBC, see SuperGuide article Definitive Guide to the Transfer Balance Cap.
Good to know: When you start your first pension account, the ATO establishes a Transfer Balance Account (TBA) to track your TBC. Your TBA is a record of all the ins and outs (credits and debits) that count towards your TBC.
