In this guide
The Albanese Government’s plan for a new tax on super accounts with a balance of $3 million or more has many people focussing on the amount of wealth they hold within the super system.
Your Total Super Balance (TSB) already affects your eligibility to make certain contributions, but with a new tax on higher account balances, there will be an increased incentive to keep a close eye on your TSB.
Monitoring your TSB – particularly towards the end of each financial year when most TSB thresholds are counted – and looking at strategies to reduce it legally, may become an increasingly important task if you have a lot in your super account.
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.
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.
