Arguably the biggest change from the July 2017 superannuation reform measures was the introduction of the Transfer Balance Cap (TBC), which effectively limits the total amount of your retirement savings that can be moved into a pension account.
This cap was initially set at $1.6 million but is subject to indexation in line with inflation in $100,000 increments.
The first indexation event occurred on 1 July 2021 when the cap was increased to $1.7 million. The next indexation took place on 1 July 2023 when, due to the rapid increase in inflation in Australia over the past two years, the TBC increased by $200,000 to $1.9 million.
Outcomes and opportunities from indexation
The increase to the general transfer balance results in strategic opportunities for you to consider and, where appropriate, implement in accordance with your super fund rules.
These opportunities include:
