In this guide
The concept of a Total Superannuation Balance, or TSB, was introduced on 1 July 2017 to measure the value of your total interests in the superannuation system.
It is used to determine eligibility for a number of superannuation measures, such as the ability to carry forward unused concessional contribution caps, and is calculated as of 30 June each year.
What is the Total Superannuation Balance?
Your total super balance is calculated by adding:
- The accumulation phase value of your super interests that are not in the retirement phase
- The retirement phase value of your super interests
- The amount of each rollover super benefit not already included in the accumulation phase value or the retirement phase value. These are rollovers that are in transit between super funds on 30 June
- The outstanding limited recourse borrowing arrangement (LRBA) amount in an SMSF or small APRA fund you entered into from 1 July 2018, if either:
- The LRBA is with an associate of the fund
- You have satisfied a condition of release with a nil cashing restriction
And subtracting:
- Any personal injury or structured settlement contributions that have been paid into your super funds.
Source: ATO
A structured settlement payment is the result of an agreement between parties to a personal injury case. A structured settlement contribution is when that payment is contributed to superannuation.
This all sounds very complicated, but for most people it isn’t. Except in a few special cases, your TSB is simply the balance of all your super accounts (including account-based-pensions) – the Total Super Balance is true to its name! The exceptions are when you:
- Have a non-account-based income stream
- Are a member of certain defined benefit funds that calculate the super balance they report differently
- Are a member of an SMSF or small APRA fund that has limited recourse borrowing arrangements
- Have made structured settlement contributions.
The calculation requires us to understand two concepts – accumulation phase value and retirement phase value or APV and RPV.
If you’re still in accumulation phase, your APV is simple. It’s the amount that would be payable if you were to withdraw or rollover your superannuation today. You can find out your balance by contacting your super fund or logging into your member account on their website.
If you have an SMSF, your administrator or accountant should keep a track of this value.
APV also includes deferred superannuation income streams, transition-to-retirement income streams and superannuation income streams that do not comply with the pension or annuity standards.
The RPV, by contrast, is calculated by the ATO using your transfer balance account as at the end of the previous financial year.
For TSB purposes the transfer balance account is adjusted to include account-based super income streams at their current value – their remaining balance on 30 June – rather than their commencement value. Modifications to the transfer balance amount may also be needed if there are structured settlement contributions to the superannuation fund.