In this guide
While there is no limit to how much you can have in super, your total super balance (TSB) does affect your eligibility to make and receive certain types of contributions.
A high balance could also mean you can’t move all your super to the tax-free retirement phase when you become eligible to access it because of the limit imposed by the transfer balance cap (TBC).
For these reasons, monitoring your TSB and looking at strategies to reduce it can create more opportunities to take advantage of the benefits of saving in super.
The proposed introduction of additional tax on the earnings of balances above $3 million provides another incentive to keep your TSB lower.
What is your total super balance (TSB)?
The TSB concept was introduced in July 2017 to measure the value of your total interests in the super system. It’s used to determine your eligibility for a number of super measures, and is calculated at 30 June each year.
The TSB measures the total of your super interests in both the accumulation and retirement phases and is a key eligibility criteria for:
- Carry forward of unused concessional contributions cap amounts
- Non-concessional contributions cap and eligibility to bring forward non-concessional cap amounts
- Government co-contributions
- Tax offset for spouse contributions
- Work test exemption.
Your ability to make or receive concessional (before-tax) contributions up to the annual cap is not affected by your TSB.
It’s important to recognise your TSB does not limit the amount you can accumulate in super; it merely measures that amount.
Need to know
It’s important not to confuse the TSB with your transfer balance cap (TBC).
The TBC limits the amount you can transfer into a retirement phase income stream.
From 1 July 2023, the general transfer balance cap (TBC) is $1.9 million. It is scheduled to rise to $2 million on 1 July 2025.
Your personal transfer cap may be different from the general TBC and depends on how much you have already used to commence income streams.
Learn more about the difference between TSB and transfer balance cap.
How is your TSB calculated?
Your current TSB is calculated using the value of all your super accounts, plus any related assets such as super pensions or retirement savings accounts.
